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We are a nationwide Unlike other invoice factoring companies,
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More information on account receivable factoring In recent years, an increasing number of businesses have discovered that factoring accounts receivable can combat the ups and downs of unpredictable cash flow cycles. More importantly, factoring companies are providing the small business community with a viable source of working capital when conventional financing is not always an option. In the last 10 years, , the volume of invoices factored has increased by ________ dollars. The impact of a loan is much different than that of the factoring process on a business. A loan places a debt on your business balance sheet, which costs you interest. By contrast,invoice purchase puts money in the bank without the creation of any obligation. Frequently, the invoice funding discount will be less than the current loan interest rate. Loans are largely dependent on the borrower's financial soundness, whereas invoice financing is more interested in the soundness of the client's customers and not the client's business itself. This is a real plus for new businesses without accounting software solution established track records. There are many situations where factoring can help a business meet its cash flow needs. It provides a continuing source of operating capital without incurring debt, which can result in growth opportunities that dramatically increase the bottom line. Virtually any business can benefit from factoring as part of its overall operating philosophy. Every good businessperson must understand the concept and benefits of factoring in order to operate as profitably as possible. The following chart can help you understand the differences between factoring and other sources of funding. |
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