Factoring is turning your receivables into CASH
Most small, non-retail businesses sell their goods and/or services to medium and large-sized businesses or government agencies, which invariably require their small business vendors to submit invoices for payment, usually bearing Net-30 day or longer terms. Therefore, in truth, small businesses provide financing to their large business/governmental agency customers which is the crux of the Small Business Cash Flow dilemma.
Although all small business owners want to grow and prosper, few have the necessary Working Capital to handle increased orders in times of economic expansion or extended invoice payment in periods of slowness.
The financial tool known as Factoring, which is the purchase and sale of accounts receivable (invoices) at a discount at or near the time of invoice creation, can help solve this inevitable Cash Flow Problem.
- Provides you with immediate cash that can be used to grow your business
- Provides clients with cash advances of 70-95% of the invoice
- Collects payment for the invoices and accepts any credit risk