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Factoring Receivables - A Tool To Finance Your Growing Company

Are you selling goods or services and waitingadvance on your slow paying invoices -
up to 60 days to get paid? Learn howsometimes up to 85% of what you have
factoring receivables can help your businessinvoiced. You can use the advance as working
grow.capital to cover new sales orders, payroll or
supplier payments. Factoring receivables
If you sell goods/services to otherprovides you with relief form slow payments
businesses or to the government, then youand provides you with the working capital you
know that commonly you have to wait 30 to 60need to grow. Factoring receivables is simple
days to get paid for your services. Unlessto  use  and  works  as  follows:
your business is well capitalized, waiting to
get paid can drain your working capital and1. You provide the product/service to your
affect your business. Lack of working capitalclient  and  send  an  invoice  to  them
can prevent you from making new sales,
forcing you to sentd customers to your2. You send a copy of the invoice to the
competition. What is worse, if the problem isfactoring  company
not corrected, it can affect you ability to
pay employees or suppliers. Missing payroll3. The factoring company advances you up to
and supplier payments is a sure indication85%.  This  is  your  first  installment
that a business is in serious financial
troubles. The solution to this problem is, of4. Once your client pays, the remaining 15%
course, simple. You just need to get business(second installment) is advanced, less a
financing. Obtaining business financing (suchsmall  service  fee
as a line of credit or business loan) is
easier said than done. If you go to a bank,The fee you pay will be based on the sales
they will require that you provide them withvolume that you finance and the credit
three years audited financials and a solidquality of your clients. Fees can generally
business plan. That kills any chances ofrange from 1.5% to 3.5% per month. On of the
financing for most startups and newbig advantages of factoring receivables is
businesses. There is, however, an alternativethat it is easy to obtain and can be set up
form of financing that can help you getin a few days. Most new and established
working capital. And, it almost always worksbusinesses can qualify easily. The biggest
better than a business loan. It is calledrequirement to qualify is that you must do
factoring financing. Invoice factoringbusiness with reputable clients or government
provides your business with a substantialentities.



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