What
are the benefits of factoring?
- Factoring stimulates cash flow.
- Factoring relies on the strength
of a business's customers.
- Factoring is accessible.
- Factoring gets quick results.
- Factoring is flexible.
In many situations, factoring
is more appropriate than bank financing, because
factoring:
-
Is based only on the accounts
receivable. A client’s ability to raise cash by
factoring is based on the total accounts
receivable, rather than on traditional measures of
financial strength and stability.
-
Provides continuing cash flow
without the requirement of periodic payments or
interim payoffs. New sales continuously create new
power to obtain cash, and the business does not
have to deal with renewal of loans or worry about
maturity dates.
-
Gives a business increased
access to cash as sales and receivables increase.
There is no ceiling beyond which the factor must
stop providing cash. The more sales a business
makes, the more cash it can draw. The factor does
not concentrate on the business debt/equity ratio
to provide funds, as banks do.
-
Offers a dependable, continuing
source of cash without the necessity of making
separate loan applications.
-
Avoids the necessity of
obtaining funds from venture capitalists, who
receive an interest in the business and generally
have a say in how the business is run.
-
Saves the business owner
precious time waiting for a loan board to grant or
deny his or her loan. Loan boards’ decisions are
influenced by many considerations, and the outcome
is often unpredictable. With factoring, periodic
delays and negotiations are eliminated, allowing
the business owner time to do what he or she does
best – run the business.
FREE,
No Obligation Consultation!
Contact
us by phone at 404-892-6712
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