|
There are many situations where factoring can help a business meet its cash flow needs. It provides a continuing source of operating capital without incurring debt, which can result in growth opportunities that dramatically increase the bottom line. Virtually any business can benefit from factoring as part of its overall operating philosophy.
Factoring
is a fast and easy process. The factor buys the invoice at a discount, usually
a few percentage points less than the face value of the invoice. The
Drawbacks People consider the discount a small cost of doing business. A four-percent discount for a 30-day invoice is common. Compared with the problem of not having cash when you need it to operate, the four-percent discount is negligible. Look at the factor's discount as though your business had offered the customer a discount for paying cash. It works out the same.
The impact of a receivable funding loan is much different than that of the factoring process on a
business. A loan places a debt on your business balance sheet, which costs you
interest. By contrast, factoring puts money in the bank without the creation of
any obligation. Frequently, the factoring discount will be less than the
current loan interest rate. Loans
are largely dependent on the borrower's financial soundness, whereas factoring
is more interested in the soundness of the client's customers and not the client's
business itself. This is a real plus for new businesses without established
track records. Alabama small business factoring Accounts Receivable factoringFactoring Loans Health Care Factoring Companies Staffing factoring California Factoring Companies Florida Factoring Companies Factoring Services Companies Receivable Funding Companies Factoring Financing Companies Alaska small business factoring Arizona small business factoring Arkansas small business factoring California small business factoring Colorado small business factoring Connecticut small business factoring Delaware small business factoring Florida small business factoring Georgia small business factoring Hawaii small business factoring Idaho small business factoring Illinois small business factoring Indiana small business factoring Iowa small business factoring Kansas small business factoring Kentucky small business factoring Louisiana small business factoring Maine small business factoring Maryland small business factoring Massachusetts small business factoring Michigan small business factoring Minnesota small business factoring Mississippi small business factoring Missouri small business factoring Montana small business factoring Nebraska small business factoring Nevada small business factoring New Hampshire small business factoring New Jersey small business factoring New Mexico small business factoring New York small business factoring North Carolina small business factoring North Dakota small business factoring Ohio small business factoring Oklahoma small business factoring Oregon small business factoring Pennsylvania small business factoring Rhode Island small business factoring South Carolina small business factoring South Dakota small business factoring Tennessee small business factoring Texas small business factoring Utah small business factoring Vermont small business factoring Virginia small business factoring Washington small business factoring Washington, DC small business factoring West Virginia small business factoring Wisconsin small business factoring Wyoming small business factoring
So,why not simply go over to the friendly banker for a loan to alleviate cash flow problems? A loan can be difficult if not impossible to receive, especially for a young, high-growth operation, because bankers are not expected to decrease lending restrictions soon. The relationships between businesses and their bankers are not as strong or as dependable as they used to be. Generally, a business that extends credit will have 10 to 20 percent of its annual sales tied up in accounts receivable at any given time. Think for a moment about how much money is tied up in 60 days’ worth of invoices: You cannot pay the power bill or this week's payroll with a customer's invoice, but you can sell that invoice for the cash to meet those obligations.
Factoringprovides the means for a manufacturer to replenish inventory and make more
products to sell: There is no longer a need to wait for earlier sales to be
paid. Factoring is not just a cash management tool for manufacturers: Almost
any type of business can benefit from factoring.
Receivable Financing Information invoice factoring Although factoring deals exclusively with business-to-business transactions, a large percentage of the retail business uses a factoring principal. MasterCard, Visa, and American Express all use a form of factoring in their retail transactions. Using the purest definition of the word, these large consumer finance companies are really just large factors of consumer paper.
Think
about it: You make a purchase at a store and charge it to your MasterCard. The
store gets paid almost immediately, even though you do not make payment until
you are ready. For this service, the credit card company charges the store a fee
(typical fees range from two to four percent of the sale). The
Benefits Asset Based Factoring Are You Ready ForFactoring Loans Why Now is the right time toReceivable Finance That Actually WorksAre You Ready For a Factoring Line of CreditCommercial Factoring The Ultimate Program ThatAre You Ready For Small Business FactoringInvoice Factoring
can offer many benefits to cash-hungry companies. Rather than wait 30, 60, 90
days or longer for payment on a product or service that has already been
delivered, a business can factor (sell) its receivables for cash at a small
discount off the amount of the invoice. Payroll,
marketing efforts, and working capital are just a few of the business needs
that can be met with this instant cash. Invoice Factoring Company Companies
consider the account receivable factoring discount the same way they treat a sales price: It is simply the
cost of generating cash flow, much like discounting merchandise is the cost of
generating sales. Factoring
is a cash flow tool used by a variety of businesses, not just those who are
small or struggling. Many companies factor to reduce the overhead of their own
accounting department. Others use factoring to generate cash, which can be used
to expand marketing efforts and increase production. Factoring
vs. Bank Loans
There
are many situations where factoring can help a business meet its cash flow
needs. It provides a continuing source of operating capital without incurring
debt, which can result in growth opportunities that dramatically increase the
bottom line. Virtually any business can benefit from factoring as part of its
overall operating philosophy. Every
good businessperson must understand the concept and benefits of factoring in
order to operate as profitably as possible. The following chart can help you
understand the differences between factoring and other sources of funding. Receivable Funding
|
A Breakthrough Factoring Company Trucking Factoring CompaniesReceivable Financing Company
Factoring Loans Why Now is the right time to Up to 97% Advance Rates: Advance rates are based on overall risk associated with a particular industry as well as experience and track record. We hold reserve accounts to accommodate industries which typically experience dilution and that we would otherwise not be able to service. Advance rates range from 80% to 97% of the gross invoice amount. Fee Structures: Fees are determined based on your industry, the credit worthiness of your customers, how quickly your invoices turn, and monthly factoring volume. GET YOUR CASH TODAY Call our factoring specialists at 1-866-593-2195 admin@factormoney.com On-Line Factoring Request Form Staffing small business factoring Building Products Distributor small business factoring Building Products Waterproofing Distributor small business factoring Farmer small business factoring Manufacturing small business factoring Maintenance Service specializing in lighting small business factoring Bean Marketing small business factoring Machine Knives small business factoring Custom Auto Body for Emergency and small business factoring Municipality Vehicles small business factoring Emergency and Municipality Vehicles small business factoring Parts and Installations small business factoring Metalized coating small business factoring Auto Parts small business factoring Powder Coating small business factoring Utility Construction small business factoring Commercial Diving /Ship repair by divers small business factoring Machine Shop small business factoring Tutoring small business factoring Trucking small business factoring Trucking - Refrigerated Freight small business factoring Trucking - Dry Freight small business factoring Trucking - Over the Road small business factoring Security Services small business factoring Commercial & Industrial Refrigeration small business factoring Repair & Maintenance small business factoring Freight Forwarding small business factoring Freight Expediting small business factoring Metal Distributor small business factoring Consulting small business factoring Software Development small business factoring Commercial Paving Services small business factoring Prototyping/Production small business factoring Gaming Manufacturer small business factoring Mobile Car Wash small business factoring Mobile Dent Repair small business factoring Training & Education for Medical Equipment small business factoring Commercial Landscape, Irrigation and Lighting Services small business factoring Jewelry sales/design small business factoring Import Tabletop Manufacturing (dinnerware) small business factoring Transport & Logistics small business factoring Rebuild Industrial Vacuum Pumps small business factoring Freight Brokerage small business factoring Precision Sheet Metal Fabricator small business factoring Custom Art Sales small business factoring Custom Embroidery & Silk Screen Printing small business factoring Medical Case Management small business factoring Direct Importing of Baseball Caps small business factoring Hospitality Staffing small business factoring Distributor of Building Products small business factoring Healthcare Staffing small business factoring Nursing Agency small business factoring Medical Staffing small business factoring Legal Staffing small business factoring IT Staffing small business factoring oil refinery inspection services small business factoring local delivery service small business factoring transportation company small business factoring transportation company (hauls cars for dealerships) (auto transport) small business factoring telecommunication tower constructions & maintenance small business factoring hydraulic service, repairs & maintenance company small business factoring Construction account- Patch work, painting and landscaping small business factoring Commercial Laundry Systems Installer small business factoring Language Translation Services small business factoring Airline Maintenance small business factoring Trucking / Container Freight small business factoring Pharmaceutical Market Research small business factoring Staffing small business factoring Building Products Distributor small business factoring Building Products Waterproofing Distributor small business factoring Farmer small business factoring Manufacturing small business factoring Maintenance Service specializing in lighting small business factoring Bean Marketing small business factoring Machine Knives small business factoring Nurse Staffing small business factoring Cable Sales and Installation small business factoring Cable Sales and Marketing small business factoring Cable Collections small business factoring Cable Construction small business factoring Aviation Parts Broker small business factoring Steel Base Manufacturing small business factoring Hydraulic Equipment Repair small business factoring Cellular Tower Maintenance small business factoring Software Services small business factoring Security and Private Investigator Services small business factoring General Maintenance Services small business factoring Machine Shop small business factoring Delivery / Courier Services small business factoring Technical Staffing small business factoring Underground Utilities small business factoring Drug Testing small business factoring Software & IT Services small business factoring Commercial Cleaning and Services small business factoring Travel Nurse Staffing small business factoring Camouflage Apparel small business factoring Retail Fixture Installation small business factoring 2 way radio, communications provider/service small business factoring IT Consulting small business factoring Fitness Equipment Manufacturer small business factoring Security Staffing small business factoring Purchase names for mass mailers and sold to Universities (Broker of Mass small business factoring Mailing Lists) small business factoring Financial Recruiter small business factoring Commercial Landscape Maintenance small business factoring Nurse Staffing to Prisons small business factoring Printed Materials, Forms - Papers small business factoring Computer/Project Consultants small business factoring Janitorial Services small business factoring Medical Transcription Services small business factoring cable tv construction (low voltage wiring) small business factoring metal distributors small business factoring drayage trucking company small business factoring trucking company: intermodal container freight small business factoring consultants and specialized transportation small business factoring hanger manufacture and recycling small business factoring Pallet Manufacturing & Recycling small business factoring Food Industry small business factoring Temporary Employment small business factoring
|