Ten Reasons for Factoring
is our top 10 list as to why you should consider factoring as
your funding solution:
CASH IN AS LITTLE AS 24 HOURS
provides you with the ability to meet your CASH FLOW NEEDS IMMEDIATELY!
NO DEBT CREATED
collateral limited by your hard assets. Factoring is NOT a loan,
so there is no debt to repay. A factoring company purchases your
invoices at a discount. This enhances the financial ratios often
used to determine your credit worthiness in obtaining other types
of financing. Your balance sheet is more attractive and your financial
position is strengthened.
factors provide Higher Advance Rates which means you factor fewer
invoices to meet your cash flow needs, which also means YOU WILL
FINANCIAL STATEMENTS REQUIRED
cases, no business or personal financial statements or tax returns
requested. Clean personal credit is not required.
handle collections in a professional manner. Factors are not collection
agencies. They understand the importance of business relationships
and treat each debtor as though it is your best customer. Factoring
companies SPEED the collection of invoices and reduce your collection
cost. You can eliminate the overhead cost associated with having
someone internally handling collections.
greatly reduce your cost of processing invoices because factors
handle much of the work.
begin factoring, the increased cash flow will provide the liquidity
to pay your venders on time. Making timely payments to vendors positively
affects your credit rating and allows you to obtain credit from
other vendors and financial institutions.
owners often spend more than half of their time on duties they do
not find productive, such as collections, administration, bookkeeping,
warding off creditors and searching for additional capital. Factoring
helps eliminate this wasted time.
receive information regarding outstanding and paid accounts on a
daily, weekly, and monthly basis.
LOSS OF BUSINESS EQUITY
percentages remain unchanged with a factoring arrangement (unlike
considering bringing in new partners with capital).
benefits of factoring:
early pay discounts
available - on demand
credit line grows with your business
other collateral needed
tax returns, audits or financials needed
are paid faster
on business growth
here to fill out a Client Profile and start getting your cash