Invoice factoring is not just for the struggling little guy. GE Healthcare Financial Services recently closed a $75 million deal with The Schumacher Group. This division of GE specializes in financial services to the healthcare industry.
A look at their website provides insights into the way that a company of this size views factoring of receivables. I did not find one mention of the word “factoring” on the GEHFS website although the site did mention that, “Our underwriting expertise in valuing real estate, receivables, inventory and cash flow ensures that our customers obtain the optimal financing structure and maximum leverage capability for any given situation.”
So factoring receivables is essentially providing financing against another asset. This is correct but it is interesting that it is not referred to as factoring. Guess that the big boys view themselves as more complex and sophisticated than firms specializing in factoring.
Snobs!
