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Cash Flow and Factoring
What could your company do with immediate cash?
- Working capital
- Replenish inventory
- Pay taxes
- Improve cash flow
- Growth funds
Factoring is a well-used method of turning accounts receivable into immediate cash flow for your business.
Factoring can provide quick and convenient funding to growing companies needing capital to operate or to expand.
When accounts receivable are factored, you are agreeing to sell your invoices to a factoring company for a discount. An
advance of money is sent to you or deposited into your account, usually within 24 to 48 hours. The factoring company then collects the payments on the invoices.
Once payment is made on the invoices, the difference between the invoice amount and the advance, less any factoring fee, is returned to you. In effect, factoring gives
you the ability to write yourself a cash advance when you most need it.
Factoring is not a loan; there is no lengthy application process, no collateral. Factoring doesn’t put you into debt and you do not make monthly payments.
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