First Business Bank Funds $1MM Factoring Facility for Software Development Company

First Business Bank’s accounts receivable financing team funded a $1 million factoring facility for a software development company that specializes in developing software solutions that enhance the automation and efficiency of its customers.

“The dynamics of this sector can be tricky with respect to factoring,” Bill Elliott, president of accounts receivable financing at First Business Specialty Finance, a subsidiary of First Business Bank, said. “Contingencies, such as milestone billings and subscription billings, can threaten the ultimate collectability of A/R. We developed a level of comfort with this transaction and others like it by analyzing the entire company’s overall risk of potential default and then weighing that risk against the collectability of the A/R.”