Accounts Receivable Financing

Factoring or Accounts Receivable Financing is a tool for providing working capital and cash flow to businesses of all sizes and in all industries. It is especially useful for startups and for small, minority, women-owned and / or disadvantaged companies. There are many reasons why Factoring should be considered. Below, I have highlighted some of the benefits. A. QUALIFYING: If you're a start up or already have significant debt, you can still qualify for this financing. Funding is based on the financial strength of your customers. B. SPEED: The initial application process is fast, usually within a week. Then, as you generate and submit your invoices, Cash is deposited into your bank account in 24 to 48 hours. C. PREDICTABLE: You have access to a steady, predictable cash flow. Invoices can be submitted daily. D. CONTROL: No longer do your customers determine your cash flow. No longer are you held hostage to the whims of your customers. And you are freed of credit term abuses. E. UNLIMITED: Virtually unlimited funds are available. You are than match up with a factor / funding source that can handle current and future growth. But, in the unlikely event that you do exceed the capabilities of the funding company, you then will be directed to a financing company that will assist in converting your account so that you have uninterrupted cash flow. F. COST SAVINGS: Factoring clients have the ability to take advantage of early payment discounts from their suppliers. Additional savings are made when you can take advantage of volume discounts. These savings can significantly offset the factoring expenses. G. GOODWILL: Paying suppliers on time improves vendor relations and fosters good will. Suppliers are incented to provide better and timelier goods and services. This is a win-win situation. Vendors are better able to survive and support your expansion and growth. H. GROWTH: Factoring provides the working capital you need to fund business fund growth in general and to fund new lines of products or services, in particular. I. DIFFERENTIATION: Without concerns about cash flow, you can attract more business by offering better terms on your invoices. Most companies negotiate on price to win business in a competitive market. Factoring allows you to negotiate with terms instead of, or in addition to price. J. SCALABLE: Your funding grows as your business grows. No need to re-apply for a new or increased loan or line of credit. K. PEACE OF MIND: Get freedom from worry about how to meet payroll and pay tax obligations. You'll have sufficient working capital to eliminate these concerns. L. COLLECTIONS: The factor handles the collections. This frees up time spent on collections. Factoring clients generally have faster payments, since customers tend to pay financial entities faster than they pay other corporations. M. FLEXIBLE: No obligations, no minimums, and no maximums. You can control some of the factoring fees by waiting to submit invoices.