Factoring Receivable

Is your business lacking the cash flow needed to allow operations to run smoothly? Are you waiting for your clients to pay their invoices because the money is needed to buy supplies and pay employees? You do not have to wait any longer. In fact, a successful company cannot wait for invoices to be paid in order to continue to grow and prosper.

Perhaps you've been turned down for a line of credit because you don't have the necessary collateral to secure it. Many business owners have found themselves in the same situation as you; they have an excellent company or business idea, but do not have access to the kind of cash flow needed to make their company work. You shouldn't let this stop you because a factoring receivable company can supply you with the cash you need, and without any collateral.

A typical case of Factoring Receivables

Here is an example of the kind of company that turned to factoring its receivables as a way to finance its expanding costs. A small custom motorcycle business that was started by a few friends with an interest in riding soon became larger than they could finance with their own money. Purchasing supplies for the purpose of custom designing motorcycles is an expensive endeavor, particularly since the product is designed to be sold to a niche market.

When the costs of purchasing supplies and paying their few employees became too much, these entrepreneurs turned to a bank for a business loan or line of credit. However, because their business was new, the bank turned them down because it deemed their business to be too great of a risk. This is an all too common scenario. However, factoring receivable invoices is one method of financing a business that doesn't involve collateral or debt.

Is factoring right for you?
Because factoring is still considered an unconventional form of financing, despite its history, some business owners are hesitant when it comes to factoring receivables. They worry that it will cost them too much money, or that it is just like a loan. Nothing could be less true. Factoring receivable companies can provide you with effective and adequate financing for a negligible cost. Plus, they provide you with the security of knowing when your business will receive cash; cash that is needed to buy supplies, pay employees and invest in growth.

But how much does it cost?
A start-up company, a growing company, or a successful company cannot wait between 1-3 months for their clients to pay their invoices. A factoring receivable company will purchase your receivables-invoices that have been shipped and accepted by a client-and will pay you cash, often up to 80% of the unpaid invoice, in return for their sale. Of course this service isn't free-it would be foolish of you to trust any company that makes promises of free factoring. However, the cost is quite small, varying between 2 and 4 % of the invoice total. In exchange for having cash at your disposal, the fee associated with factoring is quite insignificant.

Start today by contacting us here or on our toll-free number. Or apply here and get the accounts receivable funding process going today!

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Accounts Receivables Outsourcing | Small Business Funding
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Factoring Accounts Receivables | Accounts Receivables Factoring