Commercial receivable factoring could be your best means of optimizing cash-flow immediately after your sales. Are you one of many businesses that require additional funding now and not in 60 or 90 days? With commercial receivable factoring, you can sell your invoices to a factor and get cash now. The factor will buy them at a discount, usually around 10%, and you will get the working capital that your business needs. It is important that your customers have good payment histories since factors do not like to purchase invoices that they cannot collect on. You will be held responsible for any of your customers that do not pay the balance on their invoice. What ways can factoring benefit your business?
This is what it means to your company:
- You gain working capital without adding debt or diluting your equity
- You can take advantage of discounts from suppliers for early payment
- Your payroll worries will be a thing of the past when you have immediate cash
- You can purchase equipment that will increase your profitability
- It can protect and improve your credit ratings
- It can increase your sales through credit extensions
- And most importantly, it allows you to focus on the success of your business instead of worrying about your cash flow
There are funding sources in our free directory that will "factor" qualified receivables. Run a capital search to get your free matched list of lenders. You will only be matched with lenders if you meet their lending criteria 100%.