Financing Your Apparel Business with AIMS360 Fashion ERP and Factor Integration

To succeed in the fashion industry, businesses need more than creativity—they need the right tools and reliable cash flow. Apparel ERP software, like AIMS360, helps fashion companies automate operations, while financing options such as factoring keep cash moving.

Balancing design innovation and financial responsibility is one of the biggest challenges in the apparel business. Fortunately, multiple financing options are available to help, including:

• Traditional Bank Loans – Provide long-term financing but may require extensive documentation and take months to process.
• Trade Credit Insurance – Protects against buyer default and manages credit risk on receivables.
• Factoring – A popular solution in the apparel industry, factoring converts receivables into immediate working capital.

What Is Factoring?

Factoring, also known as accounts receivable financing, is a process where a company sells its receivables (invoices) to a factor for immediate cash—typically up to 90% of the invoice value. This provides essential working capital for payroll, purchasing materials, and covering overhead costs—without taking on debt.

Factoring became especially popular in the U.S. garment industry during the 1980s and ’90s, when slow-paying retailers and tight credit made traditional loans difficult to obtain.

Benefits of Factoring for Apparel Companies

Fashion brands often experience cash flow challenges, especially during seasonal peaks. Factoring offers:

• Approvals in as little as 24 hours
• Funds within days—not weeks or months like with bank loans
• Access to experienced credit and collection professionals
• Real-time online account access
• Flexible credit limits based on receivables
• Reduced need for internal A/R or collections teams

Apparel ERP Software + Factor Integration = Faster Funding

An ERP system like AIMS360 dramatically improves the speed and accuracy of factoring by automating key steps:

• Order Approvals – Instantly transmit orders to your factor for review
• Assign Invoices for Financing – Select and submit invoices electronically
• Receive Credit Decisions – Get approvals or declines right from the system
• Eliminate Manual Entry – Reduce errors and speed up processing

This automation means apparel businesses don’t miss shipping deadlines or lose revenue while waiting for manual credit decisions. And because everything flows directly through the ERP, communication with the factor is seamless.

Works with Leading Apparel Industry Factors

AIMS360 integrates directly with top factoring companies, including:

• Wells Fargo
• CIT
• Hilldun
• Rosenthal & Rosenthal
• TFI
• CBC
• BB&T
• Hana Financial
• Merchants Factors
• Milberg Factors
• Whiteoak

Want to Automate Your Apparel Financing?

Contact AIMS360 to learn how ERP + factor integration can streamline your financing process, speed up funding, and reduce operational bottlenecks.

Frequently Asked Questions (FAQs)

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What is apparel ERP software?

Apparel ERP software helps fashion businesses manage inventory, orders, production, and finances—all from one centralized system.

Is factor integration included with my AIMS360 software subscription price?

Yes, AIMS360 apparel software doesn't charge extra to integrate into your factor.

How does factoring help with cash flow?

Factoring provides immediate funds for unpaid invoices, helping apparel companies cover expenses like materials, production, payroll, and rent without waiting for customer payments. This is especially useful when working with major retailers who pay on net terms.

What’s the difference between factoring and a bank loan?

Unlike bank loans, factoring doesn’t create new debt. It’s based on your current accounts receivable and provides faster access to funds—often within 1–3 days.

Can I automate invoice submission to my factor?

Yes. With AIMS360 apparel software, you can assign invoices to your factor electronically, reducing delays and errors.

Can I approve orders for factoring inside my ERP?

Yes. AIMS360 fashion software allows you to transmit orders for approval and receive credit decisions directly within the software.

Which factors integrate with AIMS360?

We work with top industry factors including Wells Fargo, CIT, Hilldun, Rosenthal, Hana Financial, and more. See the full list here

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