Factoring to Generate Cash Flow
At one time or another, every company runs into a cash flow crunch, losing out on business opportunities or falling behind while waiting 30, 60 or even 90 days for customer payments. Unfortunately, traditional financing doesnโt always fit these needs, may have too many restrictions, or takes too long for approval.
Accounts receivable financing, or factoring, gives you the cash flow you need to keep going. You sell factoring companies your invoices and they immediately advance you the funds to operate and grow your business. Itโs a line of credit based on your sales, not your net worth. There are no limits, and you can get started with as little as $100,000 in qualified accounts receivable.
“At one time or another, every company runs into a cash flow crunch, losing out on business opportunities or falling behind while waiting 30, 60 or even 90 days for customer payments.”ย
FREQUENTLY ASKED QUESTIONS
What is Factoring?
Factoringย is a method that can be used by a company to turn their accounts receivable invoices into immediate working capital.
Who is Factoring for?
Factoring can be used by any company that would like to improve their cash flow by turning their accounts receivable invoices into immediate working capital.
What are the benefits of Factoring?
In addition to greatly improving cash flow companies provides clients with the working capital they need to manage operations and payroll without interruption, take advantage of new sales opportunities, or simply pay obligations in a more timely manner.
What can factoring be used for?
- Meet payroll and other immediate cash flow requirements
- Spend more time on business operations and less time on reporting requirements
- Obtain customer credit risk protection
- Buy inventory for increased sales
- Have an alternative to bank financing or equity financing
- Supplement or reduce the amount of equity being raised
- Take advantage of vendor discounts and opportunistic purchases
- Bring taxes current
- Acquire equipment necessary to reduce costs
- Reorganize, whether in or out of bankruptcy
- Make strategic acquisitions
- Manage seasonal sales fluctuations
