GMAC Commercial Finance announced in July that it will be selling 100 percent of it’s stake in it’s commercial factoring business.
The sale should be completed by the end of July 2008. The buyer is a European group called Skandinaviska Enskilda Banken AB. This will allow GMAC to focus on it’s invoice factoring and commercial finance activities in the United Kingdom.
Invoice factoring is a very popular method for businesses to keep it’s cash flow going instead of waiting on others to pay invoices. Invoice factors typically charge a small percentage of the entire amount financed and they fund around 70-95% of the entire invoice amount. The practice is widely used in the U.K., but it’s gaining popularity in the United States.
GMAC CF has offices in 23 cities and has a portfolio of over $5 billion. They fund amounts from $5 million to $500 million for mid-large sized businesses.
SEB will retain the offices and management in Poland and intends to integrate it fully into it’s other Poland based operations.
The factoring market is changing as the face of financial services does around the globe. With the Wells Fargo name change and GMAC’s sale – the companies funding mid-large businesses are restructuring how they make deals and fund. Small business operators who rely heavily on local factors are probably not affected by these changes.
Invoice factoring services can help trucking and transport companies, medical, manufacturing, and import/export companies keep their cash flow going through hard times in the marketplace while minimizing their exposure to bad debt. If you need to find a reliable factoring company anywhere from California Factoring to New York Factoring Services – visit BestInvoiceFactoring.com today.
