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Accounts Receivable Factoring
Accounts Receivable Factoring keeps your capital working by
turning your accounts receivable into immediate cash flow.
This is done through a third-party company or "factors" who will
purchase your accounts receivable (invoices) in generally two
phases. One, Immediate cash for as much as 90% of the invoice's
total value. And two, upon full payment of the order(s) by your
customer to the factor company, you will be remitted the balance
less a small factoring fee.
Reasons to Factor:
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Obtain a source of working capital
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Relief from responsibility for collection of
no-pay and slow-pay clients
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Fill more orders
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Flexible funding program that increases as
you increase your sales
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Ability to take advantage of vendor
discounts
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To have funds for payroll and taxes
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Extend credit to customers on large orders
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Buy equipment or inventory on demand
. . . and more
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