Click here find out more about Accounts Receivable Factoring
Cash flow is one of the primary reason many small businesses fail. Every business, even successful ones, have experienced poor cash flow. However, cash flow does not have to be a problem, and bank loans or lines of credit are not the only places a small business can get financing. Factoring (Accounts Receivable Finance) is available to businesses, and you do not have to borrow money.
Accounts Receivable Factoring is the process of selling business accounts receivable to a factoring company rather than waiting to collect the money from the customer.
Companies that use accounts receivable factoring for cash flow management like it because they get money quickly rather than waiting the usual 30 to 90 days for payment. After sending an invoice to a factoring company, a business can have money in its hands within 24 to 48 hours.
When using accounts receivables factoring, there is no debt, and no liability to you or your company. Unlike other types of business finance including short term loans, venture capital, lines of credit, and asset based lending, accounts receivables factoring does not increase your business debt. Purchasing your Accounts Receivables on a continuing basis, or invoice discounting greatly enhances cash flow management for day to day business operations.
Click here for a Cash Flow Management calculator
Factoring is non-bank asset based lending that attracts those companies which would not qualify under today's restrictive lending standards. This may apply to certain borrowers with high leverage, negative net worth, recent losses, and those faced with fast growth/expansion needs.
Factoring Accounts Receivable Rates As Low As 1.5%
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