Education Company Manages Cash Flow Problems with
Accounts Receivable Factoring from Bibby Financial Ser
January 14, 2010 01:37 PM Eastern Time
CHICAGO--(EON: Enhanced Online News)--Bibby Financial Services said that in two separate transactions it provided accounts
factoring to a California-based private education company that offers after school tutoring services under the 2001 federally-funded
Behind Act (NCLB). A second business owned by the same company sells office products and snacks to school districts. Each co
advance of $1 million that was used to pay out an existing lender and to cover general operating expenses including payroll and taxe
“We initiated a relationship with this company because it is very highly regarded for hiring high quality and experienced tutors, makin
most sought after education companies on the west coast,” Bibby Financial Services CEO Stewart Chesters said.
“With about $25 billion in federal funding for NCLB, we believe there is excellent opportunity for growth in this important industry.
ideal candidate for accounts receivable factoring because it’s a service-based business with many employees who need to be paid
client isn’t paid by its customers for about 40 days,” he explained. “Factoring bridges that cash flow gap and provides funds our clie
more tutors and grow its customer base. Additionally, it’s a cyclical business with most of its revenues generated over eight months t
school year. Factoring smoothes out that uneven cash flow, which can pinch our client,” Chesters added.
Bibby Financial Services is a worldwide market leading specialist of business cash flow solutions to small and medium-sized enterpri
in 10 North American cities and 27 countries around the world, its product portfolio includes receivables finance, factoring, export f
order finance, specialist solutions for the staffing and trucking sectors, and it is an approved lender for the Export-Import Bank’s w
guaranty delegated authority program. Bibby Financial Services is a subsidiary of The