What is Factoring? It's like Greased Lightning!!

Posted by Jonah Schnel on Thu, Oct 20, 2011

When it comes down to it, the prospects of increased cash flow in your business are just like this famous scene and song in the movie classic Grease!

John Travolta sure has a hunk of crap car.  But he sees the possibility of an exceptional hot rod in his future.  If ONLY he could convince his friends to help him get there...as we all know, his passion about the future possibilities, along with some great singing and dancing did just that.

So you're wondering how is this relevant?  Your companie's balance sheet may look like Travolta's car right now.  You have some great customers but your current cash flow is tight and you're scrambling to make payroll or looking for every available dollar to invest in future growth.  You need your high school pals to step up and help...consider Fast A/R Funding your new gang! You can decide to factor your receivables and you will have just joined the "popular or cool group" at school.  You've got trapped "value" in your accounts receivable and factoring helps unlock that value and gets you cash sooner.  No more waiting 30-60+ days for cash for goods or services you've already delivered.  A factoring company will advance that cash to you after you've invoiced your customer.  Your customer pays the factor directly when the invoice is due and then the factor sends you a rebate (less the factoring fee which the factor keeps for providing the service).

So with regard to your business, you should be systematic...hydromatic...ultramatic...your business should be GREASED LIGHTNING!!

For more information regarding invoice factoring, check out our FAQ, call Fast A/R Funding directly at 888-833-2286, or to learn more about invoice factoring, click on the link below:

 

Tags: Invoice Factoring