Your business is too precious to suffer just because its cash reserve has dried up. You couldn’t get a bank loan, and need to act immediately since your ongoing operational expenses need to be met. In this scenario, you can rely on an accounts receivable factoring company to overcome the cash crunch and also to take up new orders to generate more revenues. Taking up factoring services is a quick solution to your business funding woes as you will receive cash advances within a few days of application from the factoring firm.
Factoring is done by selling invoices against which your customers’ payments are due (in 15, 30, 45 days etc.). A factoring company purchases these invoices on their face value, pays an advance amount (up to 90% of the invoice amount) less a discount fee (2.5% to 7.0%). Later, the firm collects the same amount from your customers on the collection date. This process is also known as ‘Invoice Discounting’. Getting funds this way will improve your cash flow significantly and empower you to implement new business plans or extend payment terms to the customers, and continue to grow.
When businesses face cash shortages, they try various options such as bank loans, credit cards, small lending firms and borrowing from family and friends with very little success. Even though their business is profitable, it still faces financial difficulties due to shortage of working capital. Availing services of an accounts receivable factoring company can speed up the cash flow and enables a business to live up to its growth potential. You can buy inventories, meet payroll expenses, pay back loans, cover taxes, and take care of miscellaneous operational expenses.
Professional factoring companies are committed to serve small to medium sized businesses by providing immediate funds to them. Factoring results in good profit margins and improves credit history for those businesses. To get these advantages, you need to choose the most suitable factoring service for your firm. It is always preferred to go for a direct or principle funding firm rather than a broker. A principle factoring company will understand your requirement thoroughly and process your funding quickly. You will always get required cash whenever your business needs it.
Factoring is done by selling invoices against which your customers’ payments are due (in 15, 30, 45 days etc.). A factoring company purchases these invoices on their face value, pays an advance amount (up to 90% of the invoice amount) less a discount fee (2.5% to 7.0%). Later, the firm collects the same amount from your customers on the collection date. This process is also known as ‘Invoice Discounting’. Getting funds this way will improve your cash flow significantly and empower you to implement new business plans or extend payment terms to the customers, and continue to grow.
When businesses face cash shortages, they try various options such as bank loans, credit cards, small lending firms and borrowing from family and friends with very little success. Even though their business is profitable, it still faces financial difficulties due to shortage of working capital. Availing services of an accounts receivable factoring company can speed up the cash flow and enables a business to live up to its growth potential. You can buy inventories, meet payroll expenses, pay back loans, cover taxes, and take care of miscellaneous operational expenses.
Professional factoring companies are committed to serve small to medium sized businesses by providing immediate funds to them. Factoring results in good profit margins and improves credit history for those businesses. To get these advantages, you need to choose the most suitable factoring service for your firm. It is always preferred to go for a direct or principle funding firm rather than a broker. A principle factoring company will understand your requirement thoroughly and process your funding quickly. You will always get required cash whenever your business needs it.