Here is our top 10 list as to why you should consider factoring as your funding
1. CASH IN AS LITTLE AS 24 HOURS
Factoring provides you with the ability to meet your CASH FLOW NEEDS
2. NO DEBT CREATED
Loans require collateral limited by your hard assets. Factoring is NOT a loan, so
there is no debt to repay. A factoring company purchases your invoices at a
discount. This enhances the financial ratios often used to determine your credit
worthiness in obtaining other types of financing. Your balance sheet is more
attractive and your financial position is strengthened.
3. HIGH ADVANCE RATE
Our participating factors provide Higher Advance Rates which means you factor
fewer invoices to meet your cash flow needs, which also means YOU WILL SAVE
4. NO FINANCIAL STATEMENTS REQUIRED
In many cases, no business or personal financial statements or tax returns
requested. Clean personal credit is not required.
5. PROFESSIONAL COLLECTIONS
Factors handle collections in a professional manner. Factors are not collection
agencies. They understand the importance of business relationships and treat each
debtor as though it is your best customer. Factoring companies SPEED the collection
of invoices and reduce your collection cost. You can eliminate the overhead cost
associated with having someone internally handling collections.
6. INVOICE PROCESSING
You can greatly reduce your cost of processing invoices because factors handle
much of the work.
7. ENHANCE YOUR CREDIT
Once you begin factoring, the increased cash flow will provide the liquidity to pay
your venders on time. Making timely payments to vendors positively affects your
credit rating and allows you to obtain credit from other vendors and financial
8. INCREASED PRODUCTIVITY
Business owners often spend more than half of their time on duties they do not find
productive, such as collections, administration, bookkeeping, warding off creditors
and searching for additional capital. Factoring helps eliminate this wasted time.
9. REDUCE ACCOUNTING COST
You will receive information regarding outstanding and paid accounts on a daily,
weekly, and monthly basis.
10. NO LOSS OF BUSINESS EQUITY
Ownership percentages remain unchanged with a factoring arrangement (unlike
considering bringing in new partners with capital).
More benefits of factoring:
Meet seasonal demand
Take early pay discounts
Cash available – on demand
Your credit line grows with your business
No other collateral needed
No tax returns, audits or financials needed
No debt created
Invoices are paid faster
Focus on business growth
No geographical limits
Detailed management reports
Afra AmirSanjari is the Principal for Peacock Capital. Peacock Capital specializes in solving the cash flow challenges of Small/Medium Businesses, Government Vendors and Individuals with innovative financial solutions by providing a network for securing operating capital.