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Invoice Factoring: The Accessible Way Today's Small Businesses Can Secure Financing

INVOICE FACTORING: THE ACCESSIBLE WAY TODAY'S SMALL BUSINESSES CAN SECURE FINANCING Account Receivables Factoring is a way your business can obtain the cash it needs to improve its cash flow, to manage rapid growth or to cover working capital expenses. FACTORING RECEIVABLES INVOLVES 3 SEPARATE ENTITIES: The Invoice Factoring Company Come in We're OPEN Your Customers Your Business STEP 1 (PAID STEP 2 STEP 3 Your invoices are your assets. Collect the bulk value of the Your customers then pay their Instead of waiting 30-, 60- or even 90-days to collect on them from your customers, sell your most current invoices (aka receivables) to a third-party Factoring Company. amount due within 24-48 hrs. We advance the majority of an invoice and charge low rates until paid in full. invoices, same as they always have. ADVANTAGES Of FACTORING operations. Get Your Cash Quick - Don't wait around for customers to pay you. Get paid in days rather than weeks and handle your bills and business ACCOUNTS Good Credit Not Required – Factoring companies rely on the creditworthiness of your customers rather than your business so you can leverage their strength to get paid today. RECEIVABLES: Take Control of Your Finances – Use the money from Receivable Factoring to manage your business as you best see fit, to pay bills, to improve cash flow, or to increase your output. A SIX-POINT COMPARISON BETWEEN INVOICE FACTORING & SMALL BUSINESS LOANS More accessible to small businesses, including startups, not yet established businesses, and those with less than perfect credit. Costs less but often inaccessible to startups, those with imperfect credit, and even some established businesses in good standing. Get the cash you need when you need it, within 2 days in most cases. Banks decide when you get your money, Usually between 2-3 weeks. No collateral required; your invoices serve as your collateral, You must sign over your assets, property, equipment, and more as collateral. Fast application process that takes less than an hour to complete in most cases. 4 A laborious application process requiring extensive documentation and paperwork. An independent transaction that does not appear on your balance sheet and therefore does not increase your debt. A bank loan increases your debt & increases your liability on your balance sheet. It must be paid back with interest over a set period of time. Manages the credit & collection of invoices from your customer. Does not provide on-going services related to the loan. GET IN THE KNOW: FACTS & FIGURES ON FACTORING RECEIVABLES Factoring Accounts Receivables is one of the world's oldest financing methods going back thousands of years to the times of Mesopotamia. Though it has a long history with manufacturing and textiles industries, Accounts Receivable Factoring is now widely used across a myriad of industries, including: construction, oil & gas, freight & transportation, staffing & payroll, medical & medical equipment, government contracting and more. Invoice Factoring is estimated to be a $10 to $13 billion global business; though it is currently more popular in Europe and Asia, its popularity in the U.S. continues to rise. Accounts Receivable Factoring has increased 15 percent in the U.S. from 2004 to 2010 with a total invoice factoring volume at about 126,000 (in millions of dollars). Meanwhile, from June 2008 to June 2012, small business loans being lent dropped a whopping 83 percent from $336 to $56 billion. HOW BUSINESS FACTORS CAN HELP YOUR BUSINESS Talk to a Knowledgeable Invoice Factoring Representative Our experts will look at the unique circumstances surrounding your business to help you figure out how factoring can help you improve your cash flow, working capital, manage your receivables and more. There's no cost to speak with our representatives & they are available 24/7. Manage Your Receivables with our Online Management System Using a completely transparent process that is available online 24/7, clients who use our factoring services can stay on top of their receivables by logging on to our Proprietary Online Management System. Take Advantage of Our Flexible Terms With our invoice factoring services, you can decide which and how many invoices to factor, and you can change it month to month based on your current need and seasonal ups and downs. Flexibility keeps you in control of your capital! B BUSINESS FACTORS Call 888-220-9574 To Speak with a Consultant Today! & FINANCE SOURCES: www.bestinvoicefactoring.com/article/whatis factoring.html www.company.com/article/productguide accountreceivableinvoicefactoring/216 www.entrepreneur.com/encyclopedia/factoring www.investopedia.com/search/default.aspx?q=invoice%20factoring www.guides.wsj.com/smal-business/funding/howtoruse-factoringforcash-flow

Invoice Factoring: The Accessible Way Today's Small Businesses Can Secure Financing

shared by tina.mumm on Feb 12
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Our full scale breakdown of the how invoice factoring process works as a top, alternative financing solution for small, medium, and large businesses.

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