If you own a business that offers payment terms for your customers of net 30, net 60 or even net 90, there is a good chance that you may experience cash flow issues from time to time. It is nothing to be ashamed about. In fact, in the manufacturing world it can show a sign of growth. Let’s say you are a manufacturer and have recently sold all of your remaining inventory to a company who has net 90 payment terms. Are you going to wait around for nearly three months before you can start operating sufficiently again? With factoring you can sell your receivables to a 3rd party company and collect almost immediately so you can go back to business as usual.
Benefits of Factoring
- Scalable – Factoring is one of the only sources of financing that grows with your sales. If sales increase, more cash can become available to use if you decide to do so.
- No Debt Incurred – Because factoring is not a loan, you are not incurring any debt. This is extremely beneficial if you are looking to obtain alternative types of financing.
- Quick Turnaround – Getting set up with a factoring company is easier than most other types of financing. You will often receive funding within 24 hours of submitting invoices.
- Credit Screening – A factoring company may provide you with credit information on new and previous customers so you can make better business decisions on your end.
- Invoices Paid on Time – Factoring companies will often report payment experiences to credit agencies so a customer who is aware that you are using factors will be more inclined to pay on time.
- No Personal Guarantees – Because a factoring company bases its funding decisions mostly off of your clients creditworthiness, company principals do not have to personally guarantee the repayment of the funding amount.
- Professional Collections – A legitimate factoring company will collect receivables in a professional and timely manner thus eliminating potential costs with the collection process.
- Back-office Support – Factoring companies will manage the collection process from start to finish, which allows you to focus on growing your business.
- Customizable – Factoring can be customized and managed so that you can use it on as needed basis.
- Flexible – There are no long term contracts, minimums or maximums and if your customers are creditworthy you can expect the percentage advanced to be high and the factor fee to be low.
If you are still unsure whether or not factoring can be beneficial to your company take a look at the factoring basics. Keep in mind factoring can help you stay in control of your day to day business operations so you can increase your bottom line. A recent New York Times article discusses how big companies are squeezing their suppliers by forcing them into net 90 and even net 120 payment terms. Factoring is one way you can mange to accept longer payment terms so you do not lose larger clients.
A Small Leader in Business Lending
CapitalFront was launched with a simple premise – create an easy, accessible and rapid process for small and mid-size businesses to fund their growth. CapitalFront strives to bring a wide array of financial products, including merchant cash advance, receivable financing, factoring, SBA lending and fixed rate term solutions, to independent business owners nationwide. Call today or fill out our online application.
Terrific article! This is the kind of info that are meant
to be shared across the net. Shame on the search
engines for now not positioning this post higher!
Come on over and consult with my web site . Thanks =)
Hello! Cool post, amazing!!!
I see you don’t monetize your website, don’t waste your traffic, you can earn extra cash every month
because your content is good quality. If you want to know what is the best adsense alternative, type in google: murgrabia’s tools
I see you don’t monetize your blog, don’t waste your traffic, you can earn extra cash every month because your content is
good quality. If you want to know what is the best adsense alternative, type in google:
I see you don’t monetize your site, don’t waste your traffic, you can earn additional cash
every month because your content is good quality. If
you want to know what is the best adsense
alternative, type in google: murgrabia’s tools
Hi admin, do you monetize your blog ? There is easy way to earn decent money every day, just search on youtube – How
to earn with wordai 4
I see you don’t monetize your website, don’t
waste your traffic, you can earn extra bucks every month because
you’ve got high quality content. If you want to know what is the best adsense alternative, search in google:
adsense alternative Mertiso’s tips
Hello,I log on to your blogs named “Benefits of Factoring – CapitalFront” daily.Your humoristic style is witty, keep doing what you’re doing! And you can look our website about love spells.
I wanted to thank you for this excellent read!! I certainly enjoyed every little bit of it.
I’ve got you book-marked to check out new things you post…
I see you are into weight lifting as well! You should check out my blog, and other people articles!
Hi it’s me, I am also visiting this site regularly,
this web page is genuinely nice and the visitors are truly sharing good thoughts.
Everyone loves it when people come together and share opinions.
Great blog, sgick with it!
If there’s an extremely low level of risk involved, fees can be as
low as 1 percent of the invoice amount. In these
times, small businesses must focus on the customer, costs and cash flow.
Maintain a separate notebook which contains the list of the persons who are to be billed and for what goods
and what amount they have to be billed.
I will immediately clutch your rss feed as I can not find your e-mail subscription link or e-newsletter service.
Do you’ve any? Kindly let me understand in order that
I could subscribe. Thanks.
I found your blog web site on google and test a few of your early posts. Continue to maintain up the superb operate. I just extra up your RSS feed to my MSN Information Reader. Searching for ahead to reading more from you later on!…
Very interesting topic , thankyou for posting .
It’s remarkable to go to see this web site and reading
thhe views of aall colleagues on the topic of this
article, while I am also keen of getting knowledge.
You sure know what you’re talking about. Everyone is going to soon be visiting your site.
I just got done eating a platter of spaghetti before visiting your site. It sure makes the full feeling all that much better.
There are some of you out there who probably haven’t heard of http://www.camgirl.pw This is one of those must see sites. It’s full of extremely attractive ladies. You’re going to want to put down your sandwich when visiting this site. It’s impossible to focus on anything but the babes they have to offer.
I added a new list today. I changed how I scrape to get more results. Read my post for more details.
I just added a brand new list. I hope you all are having a great week. I’m trying new methods to find more links. Check out my site to see the results.
I hope you all are having a great weekend. I have a new list for you. Read the latest update on how I compiled the list. I’m still surprised by the results.
I hope you all are having a great weekend. I added a new list. This one is smaller, but still useful. I think the next one will be bigger.
I just updated my site with a new list. I hope you all are having a great week.
I added a new list. As you’ll see it’s bigger than most of them. I hope you all have had a great week!
I’ve been having issues with my Windows hosting. It has set me back quite a bit while making the next list. This is the current list that I have. I should add another list in less than a week. I’ll let you all know when the next list is ready. Thank you for your patience.
The other day, while I was at work, my cousin stole my iPad and tested to
see if it can survive a twenty five foot drop, just so she can be a youtube sensation. My apple ipad is now
destroyed and she has 83 views. I know this is completely off topic but I had to
share it with someone!
I like it when folks get together and share views.
Great blog, continue the good work!
I could not resist commenting. Perfectly written!
I like the valuable information you provide in your articles.
I’ll bookmark your blog and check again here frequently.
I’m quite certain I’ll learn a lot of new stuff right here!
Best of luck for the next!
What’s up, all is going well here and ofcourse every
one is sharing information, that’s really
excellent, keep up writing.
What’s up to all, how is the whole thing, I think every one
is getting more from this site, and your views are fastidious in support
of new visitors.
Hello, all the time i used to check weblog posts here in the early
hours in the dawn, as i like to find out more and more.
Hi there, yup this article is really good and I have learned
lot of things from it concerning blogging. thanks.
Hi! Do you use Twitter? I’d like to follow you if that
would be okay. I’m undoubtedly enjoying your blog and look
forward to new posts.