Invoice Factoring: A Better Alternative Than Traditional Bank Loan

Invoice Factoring A Better Alternative than Traditional Bank Loan Your Business The 3 Parties involved in Factoring Invoices Factoring Company with the Lowest Rates Your Customers WHAT IS ACCOUNTS RECEIVABLE FINANCING AND ITS ADVANTAGES ACCOUNTS RECEIVABLE FINANCING a financial strategy that allows businesses to obtain money from their receivables before customers actually remit payments depends on amount of value age of a receivable %| more current invoice pay more BENEFITS OF ACCOUNT RECEIVABLE FINANCING FOR A COMPANY Pass Off Collections - frees up your resources for other more productive activities like selling Free Up Working Capital - allows a company to free up capital tied up in inventory Quick Financing - a quick form of cash often used for business experiencing a cash crunch without requiring business plans or tax statements DIFFERENCE BETWEEN FACTORING AND BANK LOANS FACTORING BANK LOANS A bit more expensive but is easily accessible and grows with you They add debt Provides a steady predictable flow of funds They are usually one lump sum They are usually one lump sum Banks do not provide credit information Provide credit information on customers which allows you to be more selective when you sell on customers They are cheaper, but take a long tìme to qualify and are difficult to obtain Improves your balance sheet. One asset (accounts receivable) to another (cash) TOP 10 REASONS WHY INVOICE FACTORING IS THE MOST RELIABLE FORM OF BUSINESS FINANCING ACCOUNTING PRINCIPLE UNINTERRUPTED SERVICE Your billing process does not have to be interrupted and your customers do not have to be aware of the factoring agreement Allow for more cash flow flexibility in accounting BALANCE SHEET RATE VARIABILITY Cash flow is a critical mechanism Accrued expenses over time can often exceed the cost of service for ensuring that a business is able to resolve accounting expenses normally rates LIQUIDITY Produces immediate liquidity for companies seeking alternatives to traditional bank lending DISCRETIONARY SERVICE Invoice factoring companies provide private service and research is required to find the reasonably priced services ?? SUSTAINABILITY A great secondary source of commercial finance that allows INDUSTRY SPECIALIZATION By narrowing your search for the specialists, the best possible returns are likely businesses to stay afloat during poor performance periods RISK REDUCTION The intermediary agents reduce confusion via a professional broker community BILLING OBLIGATION RISK This is distinct from invoice discounting which allows businesses to retain control over billing WORLDWIDE FACTORING INDUSTRY 2013 STATISTICS MAJOR MARKETS WITH SPECTACULAR GROWTH Hong Kong (69%) Russia (66%) China (29%) Mexico (26%) 6% GROWTH in International factoring has grown in 2012 much faster than domestic factoring total worldwide volume for 35.8% factoring in Euro 33.5% The world factoring total now stands at Euro 1.7% 3.4% 2,132,231 MILLION Europe US Refarances NeeBo Capital www.neebocapital.com www.fi.nl/new/detail/id-323 www.arfoctoring.com/Foctoring-vs-bank-loons.html bizfinonce.about.com/od/debifinoncing/o/Finoncing_Using_Accts_Rec.htm hweakyourbiz.com/financa/2013/01/21/1ep 10-rossons why invoice factoring is the most roliable form of business-financing www.neebocapital.com