Monday, October 5, 2009

Factoring Companies

If you are owner of a company and facing problems of getting paid your invoices in 60 days or so then factoring company can be a solution for you. It is sometimes havoc for small, new and growing companies to wait for invoices being paid in long times as it hampers company finances.

The process of factoring companies is simple and they eliminate this 60 days time period to 2 days by buying invoices and paying your company immediately. This helps a lot as you get the money you needed to meet your company expenses such as pay rolls, supplier payments and rents and the factoring company waits for the payment by your client.
Factoring process is simple and it takes just four steps.

1. Factoring company buys invoice from your company and pays you.
2. This company advances the first payment of 70-90% of invoice.
3. This company waits for client to pay.
4. As soon as client pays company it gives second payment.

One of the advantage is your operating cost gets lowered and you are not short of money to meet daily expenses of company. Moreover you can extend the financing more rather than bank can. Banks generally sets some credit limit based on financial situation of company while this factoring company sets limit based on sales potential of your company. This can really leverage your company potential to grow.

One company which I know is It provides financial services in all sectors. The services include Accounts Receivable Financing & Factoring Asset Based Financing Government Contract Receivable Financing and Purchase Order Financing. They provide these services to almost all segments and industry such as Agriculture & Produce Auto Glass Installers, Shops Cable Contractors, Underground Cable Construction Contractors, Consumer and Contract Installments Freight Brokers Freight & Trucking Carriers, Government Receivables & Contracts International Trade Finance and many more.


Medical Billing Factoring said...

I own a medical billing company and when my clients get behind with their payments, my company and employees suffer! When things like this happen, I turn to a factoring company. I found that this is very helpful with my cash flow problems. Great blog!

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Factoring and business credit builder said...

Indeed this post is very informative and useful. It's good that there are sites like this that gives certain ideas and information for business owners to make a smart choice of factoring company.