Benefits of Factoring

 

• Enables you to fill larger, more profitable orders

• Creates a dependable cash flow of working capital

• Improves your credit rating and raises your credit score

• Allows you to offer extended credit terms to your customers

• Accelerates cash flow to take advantage of supplier discounts

• Releases you from monitoring and managing accounts receivable

• Frees you to run your company without controls from an outside entity

 

 

• Enables you to fill larger, more profitable orders

When you have a steady source of working capital, you are always ready and able to accept larger and more profitable orders, allowing you to compete with larger, better financed businesses.

 

• Creates a dependable cash flow of working capital

As your sales increase, more money is immediately available to you, enabling you to meet rising demand. Unlike lines of credit, factoring is the only source of finance that grows with your sales and gives you unlimited funding.

 

• Improves your credit rating and raises your credit score

Factoring will help you build and improve your credit score. It is not a loan and does not create a debt or adversely affect your balance sheet. Improving your bottom line makes it easier to obtain other types of financing or ultimately sell your business.

 

• Allows you to offer extended credit terms to your customers

Factoring allows you to safely and confidently offer extended credit terms to your customers to make it easier for them to buy from you. Our extensive credit database also gives you information about potential customers and discreetly enables us to effectively monitor existing customers’ credit status.

 

• Accelerates cash flow to take advantage of supplier discounts

Factoring may allow you to take advantage of early payment discounts. Many times there is a 2% savings when you pay your supplier’s bill within 10 days. Being a good paying customer to your supplier may also result in discounts in raw materials and priority status.

 

• Releases you from monitoring and managing accounts receivable

As part of our service to you, we manage and monitor your accounts receivable and provide you with detailed cash management reports. This releases you from collection calls and eliminates or reduces back office staffing expenses.

 

• Frees you to run your company without controls from an outside entity

Factoring frees you from the worry of a slow cash flow without the complicated paperwork and oversight of a bank or line of credit. Since factoring verifies your customers’ invoices, it actually serves as an early-warning detection of customer service problems. Most of all, it allows you to spend less time collecting money and more time building your business.