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Here is our top 10 l st as to why you should c nsider factoring as your funding
solution: 1. CASH IN AS LITTLE AS 24 HOURS
F ctoring provides you with the ability to m et your CASH FLOW NEEDS
IMMEDIATELY! 2. NO DEBT CREATED
L ans require collateral limited by your h rd assets. Factoring is NOT a l an, so
there is no debt to r pay. A factoring company purchases your nvoices at a
discount. This enhances the f nancial ratios often used to determine y ur credit
worthiness in obtaining other typ s of financing. Your balance sheet is m re
attractive and your financial position is str ngthened. 3. HIGH ADVANCE RATE
Our p rticipating factors provide Higher Advance Rates wh ch means you factor
fewer invoices to m et your cash flow needs, which lso means YOU WILL SAVE
MONEY! 4. NO FINANCIAL STATEMENTS REQUIRED
In m ny cases, no business or personal f nancial statements or tax returns
requested. Cl an personal credit is not required. 5. PROFESSIONAL COLLECTIONS
F ctors handle collections in a professional m nner. Factors are not collection
agencies. Th y understand the importance of business r lationships and treat each
debtor as th ugh it is your best customer. F ctoring companies SPEED the collection
of nvoices and reduce your collection cost. You can liminate the overhead cost
associated with h ving someone internally handling collections.
6. INVOICE PROCESSING
You can gr atly reduce your cost of processing nvoices because factors handle
much of the w rk. 7. ENHANCE YOUR CREDIT
Onc you begin factoring, the increased c sh flow will provide the liquidity to pay
y ur venders on time. Making timely p yments to vendors positively affects your
cr dit rating and allows you to btain credit from other vendors and f nancial
institutions. 8. INCREASED PRODUCTIVITY
B siness owners often spend more than h lf of their time on duties th y do not find
productive, such as c llections, administration, bookkeeping, warding off creditors
and s arching for additional capital. Factoring helps liminate this wasted time. 9. REDUCE ACCOUNTING COST
You w ll receive information regarding outstanding and p id accounts on a daily,
weekly, and m nthly basis. 10. NO LOSS OF BUSINESS EQUITY
Own rship percentages remain unchanged with a f ctoring arrangement (unlike
considering bringing in new p rtners with capital). More benefits of f ctoring: Meet seasonal demand
Impr ve creditworthiness
Regulate cashflow
T ke early pay discounts
M et payroll
Cash available - on d mand
Your credit line gr ws with your business
No ther collateral needed
No tax r turns, audits or financials needed
No d bt created
Minimal paperwork
Inv ices are paid faster
F cus on business growth
Cr dit screening
No geographical l mits
Detailed management reports
V lume discounts
Credit monitoring
The article Top Ten Reasons for Invoice Factoring was Submitted by Afra AmirSanjari through Articles.GetACoder.com network. Here's the additional information: Afra AmirSanjari is the Principal for P acock Capital. Peacock Capital specializes in s lving the cash flow challenges of Sm ll/Medium Businesses, Government Vendors and Ind viduals with innovative financial solutions by pr viding a network for securing perating capital. http://www.peacockcapital.com ; info@peacockcapital.com
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