10 Reasons Why Factoring Is Good Business
Immediate Cash Flow
Midwest Factoring Company will immediately advance you as
much as 75% of the value of your receivables so you
have working capital to secure more business.
2. No New Debt
Factoring is simply
gaining faster access to your receivables. It, therefore,
has no impact on your balance sheet or debt ratio.
3. No Loss of Equity or Control
Traditional funding sources expect to profit from your future success
by assuming equity in your business and/or taking an active role in
improves cash flows, but leaves you in control.
4. No Collateral or Personal Guarantees
Because factoring is based on the strength of your customers and the
business you have already earned, collateral
and personal guarantees are not needed.
5. Better Discounts From Suppliers
Your are in a strong position to negotiate the best price and delivery
from suppliers when payment is made immediately.
6. Improved Credit Rating
When you pay your suppliers
and creditors promptly, your rating becomes A-1 and your reputation
7. Reduce Risk of Bad Debt
Should a bad debt occur, we will assist you in trying to collect it.
8. No Business Plans
Banks often have restrictive
lending requirements where they consider cash flow,
profitability, equity and years in business. The decision by Midwest
Factoring Company to purchase invoices is based on the quality
of your customer base and their past payment performance, rather than
the length of time and profitability of your business.
9. Less Administrative Burden
When Midwest Factoring Company purchases your receivables,
we assume responsibility for invoicing, collecting, and reporting—you
spend less time managing your cash flow and more time increasing it.
10. Seldom Use Tax Returns
In some situations, it is necessary to provide tax returns, financial
statements and profit and loss statements (P/L).
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