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The Benefits of Factoring
With competition on the rise many businesses are finding themselves cash poor due to the demanding terms of their customers. However, there is an alternative financial solution called Factoring that allows your business to be more competitive while improving your cash flow, credit rating, and supplier discounts.
Factoring is a simple buy-sell process. You sell your invoices to a Factor and the Factor gives you cash for an agreed discount. Unlike traditional bank financing, Factoring relies on the credit-worthiness of your customers, not you. Some of the great benefits to Factoring are as follows:
Improve Cash Flow without adding debt:
. Receive cash for your outstanding invoices
. Meet tax requirements on time
. Purchase capital equipment
. Market for additional business
. Utilize increased cash flow to increase market share
. Pay your suppliers faster and take advantage of discounts
Improve Customer Credit Services:
. Reduce bad debt
. Streamline credit approvals for new customers
. Improve decision-making on new business
. Reduce administration costs
. Accounts Receivable Management
Take Advantage of the Flexibility
. Factor as much as your want or as little as you want.
. There are no minimums and no maximums in the amount you can factor.
. Funding is based on the financial strength of your customers.