|
Factoring
Using your business accounts receivable to provide cash flow for you business has never been easier. Most companies feel that turning over their accounts receivable for cash flow purposes indicates to their clients that there is an issue with the business. Not true, our associates make sure that the customers are educated and that follow-up and account management is handled properly. Our investors have spent time training individuals in account management to ensure that the management of a business's accounts receivable is handled in the utmost professional manner. Most of our programs pay up to 92 cents on the dollar, other programs start at 71 cents and generally require 20% in a non-recoverable account. Let us tell you about how our programs differ and how your cash flow can give you an instant lift in your financials.
If you are a small businessman and you are sending out invoices which are due in 30 days but your customers take up to 30, 60, or 90 days to pay you, then factoring is the answer to your cash flow problems. Factoring allows you to leverage your large invoices to gain immediate access to cash. If you are a rapidly growing company you may have a large amount of money in receivables that you can't tap from a traditional lender. In fact, fast growth creates an inordinate need for working capital. With the economy slowing, banks are curtailing lending and, when they do that, small businesses are always the first to get hurt.
Through the process of factoring (receivables-funding) you may sell your receivables to a funding source (a Factor). Typically the Factor will advance you 70% to 80% of your total amount and retain 20% to 30% in reserve. When the Factor collects on the receivables he will reimburse the reserve amount minus his fee which is typically 3% to 5%. You can see that after the first month you will be virtually running a C.O.D. business.
Think of the possibilities when you have cash on demand! Call us today for a free consultation.
| 
(303) 619-0590 
