| Are you selling goods or services and
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| | financing. Invoice factoring provides
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| waiting up to 60 days to get paid? Learn
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| | your business with a substantial advance
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| how factoring receivables can help your
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| | on your slow paying invoices - sometimes
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| business grow.
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| | up to 85% of what you have invoiced. You
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| If you sell goods/services to other
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| | can use the advance as working capital to
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| businesses or to the government, then you
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| | cover new sales orders, payroll or
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| know that commonly you have to wait 30 to
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| | supplier payments. Factoring receivables
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| 60 days to get paid for your services.
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| | provides you with relief form slow
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| Unless your business is well capitalized,
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| | payments and provides you with the
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| waiting to get paid can drain your
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| | working capital you need to grow.
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| working capital and affect your business.
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| | Factoring receivables is simple to use
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| Lack of working capital can prevent you
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| | and works as follows:
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| from making new sales, forcing you to
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| | 1. You provide the product/service to
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| sentd customers to your competition. What
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| | your client and send an invoice to them
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| is worse, if the problem is not
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| | 2. You send a copy of the invoice to the
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| corrected, it can affect you ability to
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| | factoring company
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| pay employees or suppliers. Missing
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| | 3. The factoring company advances you up
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| payroll and supplier payments is a sure
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| | to 85%. This is your first installment
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| indication that a business is in serious
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| | 4. Once your client pays, the remaining
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| financial troubles. The solution to this
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| | 15% (second installment) is advanced,
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| problem is, of course, simple. You just
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| | less a small service fee
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| need to get business financing. Obtaining
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| | The fee you pay will be based on the
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| business financing (such as a line of
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| | sales volume that you finance and the
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| credit or business loan) is easier said
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| | credit quality of your clients. Fees can
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| than done. If you go to a bank, they will
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| | generally range from 1.5% to 3.5% per
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| require that you provide them with three
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| | month. On of the big advantages of
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| years audited financials and a solid
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| | factoring receivables is that it is easy
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| business plan. That kills any chances of
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| | to obtain and can be set up in a few
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| financing for most startups and new
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| | days. Most new and established businesses
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| businesses. There is, however, an
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| | can qualify easily. The biggest
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| alternative form of financing that can
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| | requirement to qualify is that you must
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| help you get working capital. And, it
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| | do business with reputable clients or
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| almost always works better than a
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| | government entities.
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| business loan. It is called factoring
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|
