What is Factoring?
Many companies
get into a cash bind by extending credit to their customers for 30
days while having to immediately fund certain costs, particularly
payroll. This problem only gets worse as sales grow. With factoring,
your invoices are used as collateral for a short-term loan which
provides you immediate cash with which to meet these expenses.
Every type of industry
where commercial invoices are generated can, and does, utilize
factoring. According to the Commercial Finance Association, accounts
receivable based financing currently exceeds $60 billion per year in
the United States alone. Generally, if you have to pay for labor or
materials in a shorter period of time than your receive payment from
your customers, factoring can help your business. If your business is
growing faster than your ability to provide additional working
capital, either from private sources or from a Bank, factoring can
probably provide the cash you need to maintain your growth. Or, if you
are unable to qualify for additional financing from a Bank because
your business is too new or you've had credit problems in the past,
factoring may provide the solution to your cash needs.
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NO Obligation Factoring Quotes Today!
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