If the availability of more cash flow can increase your sales or lower your cost, then Factoring is the answer for you.
What is Factoring?
Factoring is the purchase of accounts receivable as opposed to a loan against them. By converting accounts receivable into instant cash, a company can stay current with its vendors, take advantage of supplier discounts and other keep up financial obligations such as payroll and taxes.
Why do businesses chose Factoring?
Many young and/or fast growing businesses have trouble obtaining traditional bank financing due to their length of time in business, profitability or financial strength. Other business that are eligible for bank financing are approved for insufficient credit limits.
Highlights:
– No debt is created or loans to pay off;
– Efficient cash flow allows you to keep up with your growth;
– Cleaner financial statements;
– Raise cash against approved accounts receivable, instead of traditional measure of financial strength;
– Continuous source of cash flow without the requirement of periodic payments or interim payoffs;
– More sales equals more cash.