Benefits of Factoring Receivables

Factoring is a flexible financial solution that can help your business be more competitive while improving your cash flow, credit rating, and supplier discounts. Unlike traditional bank financing, factoring relies on the financial strength and credit worthiness of your customers, not you. You can use factoring services as much as you want or as little as you want. There are no obligations, no minimums, and no maximums. Here are the most common reasons businesses use Factoring services:

Improve Cash Flow Without Additional Debt

• Eliminate long billing cycles and receive cash for your outstanding invoices in 24 hours or less.
• No new debt is created. Factoring is not a loan. This allows you to preserve your financial leverage to take on new debt.
• Meet tax requirements on time
• Purchase capital equipment
• Pay off delinquent obligations
• Market for additional business
• Reduce stress, improve planning

Customer Credit Services

• Reduce bad debt expense
• Streamline credit approvals for new customers
• Improve decision-making on new business
• Reduce administration costs

Accounts Receivable Managment

• Reduce administrative costs
• Improve customer relationships
• Improve receivable turns
• Improve accounting
• Redirect critical resources to marketing and production

Offer Better Terms - Win More Business

• With Factoring you can attract more business by offering better terms on your invoices. Most companies negotiate on price to win business in a competitive market, but with Factoring you can negotiate with terms instead of price.
  
• To your customers, better terms can be more attractive than better prices.
• When using attractive terms to win business, you can build the cost of factoring into your costs of good and services.

Example: A new customer may choose to do business with your company because you can offer NET 30 or NET 45 terms while your competitor (who isn't factoring) requires payment up front but has a 3% better price. If you factor the subsequent invoice at a discount of 3%, you have leveraged factoring services to win the business at no extra cost and improved your cash flow at the same time.

Flexability

• Factor as much as your want or as little as you want. You decide.
• No obligations. No binding contracts.
• There are No minimums and No maximums in the amount you can factor.
• Funding is based on the financial strength of your customers.

Get a Quote and Start Factoring Now!