Factoring is a way to finance a business that is in need of cash flow and/or experiencing growth. Factoring provides immediate cash in exchange for invoices. Factoring is the purchase of accounts receivable giving businesses control over how and when they can grow without creating debt on their balance sheet. Usually taking 7-10 business days for the initial funding, factoring can be set up for a business in a few simple steps.
One of the first things to come to a business owners mind when hearing the word Factoring is cost and way too much of it. However, this isn’t necessarily the case. As a matter of fact, depending on how one views the situation, it may actually not be a cost at all. It is easy to always focus on cost and this is often the first question that is asked from a business owner to a Factor, “how much will this cost me?” When in reality this should not be the first question to ask; but “how can it benefit my business?”
It is important to look at the benefits of Factoring and how it can improve cash flow. Can the availability of cash actually allow for other cost savings? The overall scenario needs to be analyzed and a full understanding of why Factoring should be used needs to be thought over. There is not one single answer for all business owners as to why the cost of using a Factor is justified and actually beneficial. Just as companies have their own unique products and services, they also each have their own specific needs for cash and reasons for managing it in a particular way.
Why Invoice Discounting is the Answer for your Cash Flow Woes
Posted by John Mauldin on Mon, Apr 22, 2013
Why Offer Invoice Discounting As Part Of Your Factoring Program
Posted by Jeremy Waller on Tue, Mar 26, 2013
The benefits of factoring are well documented. Factoring is a great way to improve your cash flow, relieve stress and free up cash for new business development. It allows you to outsource credit assessment and some collection functions to a third party. It gives you the ability to focus on what’s important in your business.
Tags: Invoice Discounting
Build Your Client Base By Investing In Invoice Discounting
Posted by John Mauldin on Wed, Feb 13, 2013
In my tenure in the commercial finance industry, I have learned a lot about what to
do and what not to do when it comes to running a business. One thing you must do
to successfully run a business is to
stay organized.
Tags: Invoice Discounting
No matter what industry your business serves, there’s something very critical you must be as a business owner to be successful: organized!
Tags: Invoice Discounting
Invoice Discounting: Boost Your Accounts Receivable Collection
Posted by Jeremy Waller on Wed, Dec 05, 2012
Apart from fixed assets, accounts receivable are one of a business’ largest assets. A large AR balance is both a blessing and a curse. Increasing AR means that sales are coming in, but AR is just numbers on a piece of paper.
Tags: Invoice Discounting
Tags: Invoice Discounting
Fast A/R Funding is an invoice discounting firm that focuses on using the latest technology to make invoice discounting:
Tags: Invoice Discounting
Tags: Invoice Discounting