- Why Companies Factor? Real Life Explanation
Regardless of the type of company, the end result of rapid growth is often the same: insufficient cash flow. For example, when a manufacturing company is expanding rapidly, orders are coming in almost faster than they can be filled.
- What is Small Business Factoring really about?
Small Business Factoring is the process of selling your accounts receivable invoices to a third party, who then is responsible for collecting the payment. These agents, known as factoring companies, can move quickly to get funds for a company in exchange for a fee as a way to provide funding for development. Most factoring companies are initially paid in two stages: the majority (70 to 90%) in advance through the initial advance and the balance at the time of collecting the invoice. Factoring fees range from 2% to 5% or more depending on a number of variables.
- Accounts Receivable Factoring - Take Advantage of your Biggest Asset (Part 1)
Take a good look at your detailed financial analysis and you may be in for a surprise. Many business owners are not aware that between 40% and 70% of your company assets are tied up in your Accounts Receivable. What if they were all of a sudden gone?