|
|
|
How Factoring Works
Although
considered to be the most powerful financial tool available to small and
midsize business, one of factoring's true strength lies in its
simplicity and availability to most small businesses.
Factoring is simply the
advance of payment upon the invoices of a business. It allows:
-
businesses that currently
grant their customers payment terms of 30 days or longer to be paid
early on those invoices by the factor and receive immediate cash which
can be used for employee payroll, vendor payments, or almost any other
need. The factor then waits for the normal customer payment and
manages collections and provides reports and agings, to the business
owner.
-
businesses that cannot
grant terms of payment to customers due to cash constraints to begin
doing so. Granting terms of payment to customers almost always
leads to additional business from that customer. Additionally,
many small businesses must walk away from valuable contracts only
because lack of capital makes it impossible to provide timely payroll
to employees while waiting 30, 45, even 60 days or longer to be paid
by the new customer. Factoring makes accepting such contracts
easy.
|
|
Your Credit of Little Concern
Because
factors are repaid for their cash advance by the normal payments that
are received on the invoices purchased, your company's credit history
(or lack thereof) is of little concern to factors. This makes
factoring a perfect solution for new, startup companies, disadvantaged
business enterprises (DBEs), or almost any company that does not qualify
for a typical bank loan due to the bank's more stringent lending
policies |
|
|
Focus On Sales, Not On
Chasing Dollars
Most
importantly, factoring your invoices allows you to focus on sales and
marketing, not chasing dollars to squeeze out the next payroll. It
allows you to compete head-on with larger, better financed competitors
and levels the playing field even if your a small operation. With
factoring, there is almost no contract or new business you will need to
turn down due to lack of working capital and payroll worries.
|
|
Find Out More
The ready
capital provided by factoring can
easily mean the difference between success or failure for many small
businesses. To find out more about factoring and its many
benefits, we have published an informative and
complimentary small business owner's guide entitled
"Growing Your Business
Through Factoring....WHEN BANKS SAY NO!"
Request your FREE
Small Business Guide today
Its FREE
and available from our contact area.
|
|
Copyright
DataMax Marketing Systems,
Inc. 2007 All rights reserved |
|
