Is
Accounts Receivable Factoring Right For Your Business?
7-5-2005
Small to medium size
businesses find themselves struggling to finance the growth of sales on
net 30 day credit terms. Too much growth to charge accounts will put a
cash flow shortage and may cause problems in meeting payables to
vendors, payroll and other fixed expenses.
The first thing that naturally comes to a business owner is to go to the
local bank for help. Due to the highly regulated bank industry on
business loans, if you are lucky enough to meet all the requirements,
you may go out of business or lose out on business opportunities by the
time your loan gets approved. Then you find out later that the amount of
the loan seemed substantial at the time but your business growth
exhausts the funds and now your back to square one, only this time the
bank will not extend you more credit.
In summary, you are now in the finance business for your customers,
paying interest on money tied up in receivables, and no more funds
available to sustain future business growth.
So where do businesses that have this problem get their financing?
Factoring companies specialize in financing accounts receivable.
Accounts receivable factoring is the selling of outstanding invoices or
receivables at a discount in exchange for immediate cash to your
business. Imagine if you could convert your receivables to cash flow in
3 to 5 working days, and then collect all future invoices within 24hrs.
This is a financing tool that many business owners are taking advantage
of everyday.
What are the benefits of accounts receivable factoring?
- Funding of accounts
receivable usually can happen in 3 to 5 working days.
- No financial statements are needed.
- No up-front fees to set up an account.
- Converts dead money in receivables to instant cash flow.
- Credit limits are determined based on your customers ability to pay,
not your business credit.
- Eliminates the need to borrow money or give up your ownership to
private investors.
- Provides professional credit analysis of your accounts and new
customers that are going to be sold on credit terms.
- Loans create debt on your balance sheet whereas factoring does not.
- Provides the ability to pay vendors with net 10 day cash discounts
which will offset some of the cost.
If you feel that this type
of financing is right for your business, please call today at 1800 450
9653. Start Factoring Today!
1st Commercial
Credit, a
nationwide
factoring company headquartered in El Paso, Texas. Provides accounts
receivable financing in the US, Canada, and the UK; offers
export trade finance to clients in every major world
market and can convert receivable finance transactions in 17
currencies.
1st Commercial Credit is a
factoring company that provides receivable financing for all major industries, We are
always adding industries to our portfolio.
[
[
[