TAG Inks Sales Invoice Factoring Agreement

Total Apparel Group Inc. (TAG), a distributor and licensee of market-leading international trademarks in the branded apparel, footwear and accessories sectors, enters into a receivables factoring agreement with Coral Capital Solutions that is expected to expedite the cash flows of the company and provide collection services, while reducing credit risk.

 

"Coupled with our recently announced credit facility, this factoring agreement arms us with a powerful tool to accelerate growth," says TAG CEO Janon Costley. "For those investors not familiar with factoring arrangements, from time to time TAG may sell our receivables to Coral at a moderate discount to the total bill. We can then immediately use the cash advance received from Coral to place more orders with our manufactures."

 

Coral will also assume the credit risk of certain customers and continually monitors the credit worthiness of existing customers through its credit approval process. In addition to these services, Coral also facilitates and manages the collection of payments from the customers whose receivables it has purchased from the company.