Account Receivable Factoring
your accounts receivable papering the walls? Is your bottom line
bottoming out? Are your profit margins marginal? Is your cash
flow closer to a trickle?
Consider factoring - a little
known practice in the business world that may mean the difference
between survival and extinction for a struggling business.
is the practice of purchasing accounts receivable.
A factor is an individual or company who pays a business all or
part of an invoice's face value within 48 hours of product delivery,
bypassing the 30 to 60 day wait typical of many accounts receivable.
The factor takes a portion of the invoice amount as payment, typically
five percent to seven percent.
Factoring is ideal for manufacturers, wholesalers, staffing agencies,
and service businesses, experts say.
Factoring can help businesses just starting out, or established
firms whose cash flow has slowed. And, because factoring
frees capital frozen in accounts receivable,
it helps clear the way for growth-oriented companies.
Factoring is probably one of the most productive vehicles a company
can use. Banks have virtually stopped providing accounts