Monday, July 30, 2012

Business Funding - Factoring Your Way Out of Debt

Factoring is the transaction of turning your Invoices into working capital within days or hours after you Invoice a client.  It is one of the best ways to create working capital, without incurring debt.

It simple, easy and fairly safe.  In most cases the Lender takes the risk.  And they are experts at knowing who to factor and who not to touch. 

Online it appears that Lenders are a dime a dozen, however, this is not true.  There are a certain number of brokers who have their own corporation and refer business owners to Lenders.  Then there are those of us, who do not charge a fee for our services and we place you with a reputable Lender within hours, at no cost to you.

We know who can purchase your Invoices within 48 hours and and low rates.  We know which Lenders work well with Government Invoices as well as Corporate, State and Utility Invoices.  In order words, we know where the money is, how much it cost, and what you need to do to get funded, based on your industry, location and amount of Invoices, and most importantly, who your customer is.

Factoring or Accounts Receivable Financing is based on your customers credit, not yours.  And that is another reason that factoring is so popular amount a select few.  Usually the Lenders will say, "No Financials Required"  - this means no credit scores!  It's like a business loan, and your Invoices are held as collateral 

Those who have factored off and on over the years, understand that the fees that the Lender charges them for "money" is 100 per cent tax deductible.  So at the end of the year, the Department of Treasury helps to underwrite the cost of you creating working capital in order for your business to grow.

Often times, the companies who are factoring, have excellent credit and they keep it that way by paying cost immediately and getting discounts.  They understand that some times cash flow get a little tight, especially when the vendor's payment is late and payday is at the end of the week.

Accounts Receivable Financing helps to eliminate the problem, and allow the company to grow without feeling the growing pains. 

To learn more about how a Lender can reduce your cash flow concerns, visit: http://taxeswilltravel.com/Application.htm and complete the six question app/  We will locate you a suitable Lender.
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