Investing in Corporate Receivables
PMF Invests in Corporate Receivables via a process called “Factoring”… How does it work?
Factoring is the purchase of ‘Corporate Receivables’ at a discount on their face value from a company that requires accelerated cash-flow for growth, expansion, new sales, etc….
Traditional banks are often very difficult for middle market companies to get loans or working capital for their expansion so ‘Factoring’ their corporate receivables (or selling their corporate receivables) from their good customers like CostCo, Walmart, etc. makes for a good investment for them to receive their working capital sooner to use for other things as well as a good investment for us.