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Accounts Receivable
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Accounts Receivable Funding, also referred to as factoring, is the
transaction of accounts receivable (or invoices) between you and a
third party called a factor. Factoring is a centuries old financial
service. In the past, only available to multi-billion dollar
corporations, factoring is now available to small and mid-sized
businesses, to whom banks are usually reluctant to lend funds to.
Today, Accounts Receivable financing fills a tremendous void in the
world of American business.
The Invoices to your customers for goods delivered or services rendered
can be converted into a "credit line" from which you may draw cash to
better manage or grow business. You can draw only as much as you need
and pay only for what you use. Let someone else handle the collection
process.
Factoring is a tool that you can use to:
Raise capital without creating debt
Improve the cash flow of your business
Take advantage of discounts on materials
Make payroll
Pay back taxes
When you deliver your goods or services to any company you create an
invoice to be paid. At that point you can access the cash for that
invoice immediately. We advance you 80% of the invoice within 24-36
hours. When the invoice is paid in full we give you the remaining 20%
minus our low daily fee(Aprox. $28.50 on $1000 invoice paid in 30
days). |
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