The Hedaya Capital Group formed a partnership with a New York-based apparel wholesaler through a new credit and collections factoring facility. The facility effectively outsources the company’s credit and accounts receivable department to Hedaya, enabling the business to focus on growth, protect itself against losses and free its internal team to prioritize core operations and sales rather than credit, collections and bookkeeping.
The company purchases closeout merchandise and overstock from major brands and resells these goods to off-price and regional retail customers across the United States, such as Ross Stores, Beall’s Outlet, Variety Wholesale and Huck Finn Clothes. An associate in the apparel industry referred the company to Hedaya.
Under the facility, Hedaya purchases and manages the company’s accounts receivable, performing credit checks and approvals on customer orders and managing the collection process directly with the company’s customers. For credit-approved customers, Hedaya provides a credit guarantee, meaning the company is paid even if a customer is unable to pay due to financial hardship — functioning much like a credit insurance policy. Because Hedaya deals directly with the company’s customers, it also gains firsthand insight into payment trends, helping identify and avoid potential losses before they occur.
Hedaya also provides the back-office reporting the company would otherwise need to staff internally, including cash application, chargeback reporting and accounts receivable agings. With the facility in place, the company can grow its revenue several times over without adding personnel or overhead to its credit or accounts receivable functions.
“We act as a growth partner, not just a funding source for our clients,” Ezra Hedaya, principal of Hedaya Capital, said. “Our specialized credit and collections management service minimizes bad debt risk, lowers fixed overhead and equips clients with the financial insights needed for confident business decisions and stronger risk management. We are excited to see this relationship grow.”
