Growing Faster Than Your Cash Flow?
Let Factoring Fund Your Next Expansion
By Marty Milan
Why wait weeks or months to get paid by your clients when you can
access your money in a matter of days by factoring your invoices.
When a business factors their invoices, they are allowing a third
party to purchase their invoices at a discount price. This discount
is considered the third party's fee.
If your business receives orders from customers on a regular basis,
but has to wait 30, 60, or even 90 days for payment, you maybe
experiencing a crunch in your cash flow. Factoring gives you the
opportunity to access your cash within days not weeks or months. The
growth of your company depends on whether or not you have the working
capital necessary to finance your expansion.
When a factor purchases a company's invoice or invoices, no interest
is ever charged. This is because factoring is considered an outright
purchase. When a company sells their invoices to a factor, they can
expect to receive an advance up to 90% or more of their accounts
receivable. The business gets this money immediately and the factor
makes a fee for this service, turning the transaction into a win-win
situation for both parties.
Factoring is no longer a business tool used by the large Fortune 500
Companies. Small to midsize businesses are receiving tremendous
benefits by implementing factoring as part of their financial
strategies. If your business is growing at a faster rate than your
cash flow, maybe it's time to explore an alternative solution such as
accounts receivable funding.
Marty Milan works with businesses to help them generate a
continuous stream of cash flow without the occurrence of debt. In
addition to accounts receivable funding, you can read on various
topics such as lawsuit funding, structured settlements, selling your
private mortgage notes and more at: www.cashflowaccess.com. Email
at
cashflowaccess@...Other articles include: To Factor or Not to Factor?
