Top Ten Reasons for Invoice Factoring

Here is our top 10 list as to why you should consider factoring as your funding


Factoring provides you with the ability to meet your CASH FLOW NEEDS


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.


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


In many cases, no business or personal financial statements or tax returns
requested. Clean personal credit is not required.


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.


You can greatly reduce your cost of processing invoices because factors handle
much of the work.


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


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.


You will receive information regarding outstanding and paid accounts on a daily,
weekly, and monthly basis.


Ownership percentages remain unchanged with a factoring arrangement (unlike
considering bringing in new partners with capital).

More benefits of factoring:

Meet seasonal demand

Improve creditworthiness

Regulate cashflow

Take early pay discounts

Meet payroll

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

Minimal paperwork

Invoices are paid faster

Focus on business growth

Credit screening

No geographical limits

Detailed management reports

Volume discounts

Credit monitoring

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.

Great Advice On Running A Home Business

Would you believe someone who told you that you could start a home business and quit your job? What it amounts to is many people attempt to popularly sell you on starting a home business. You can be successful, but you need to understand that it takes hard work and dedication. Use the tips below to help you get your home business off the ground.

Avoid being pulled into socializing on the Internet. Only use these sites to advertise your business. You may get distracted by the various in and outs of these websites, but do not lose focus. Leave Facebook alone until your work day is done.

Find out what competitors are charging for their services. This information should be used as a basis for determining your rates. There’s nothing wrong with charging enough to cover your expenses and make a profit.

A critical part of starting any home business is proper financial planning. Determining how much money you’re likely to make over the next year is a useful exercise. This projections would predict many of the financial statistics of your business. You need to know how to estimate what you think your sales, expenses, and profits would be. You should always have a game plan when it comes to your business, you will be ready for any changes you may have to make in the future.

Know how much cost goes into the products you are selling in order to be able to determine profits. If you want to sell the product wholesale, you would take how much it cost you to make it and multiply that by two. Businesses that purchase goods from wholesalers generally charge twice the amount they have spent on goods. Set a price that covers your costs, and is sensitive to the market.

Know your prices. Figuring the cost to produce your merchandise can help you decide what kind of profit margin you want. The generally accepted formula to deduce the price that the customer will pay is to double the cost that you pay for the merchandise. That is equivalent to what you’re going to need to charge other people to get it wholesale. Multiply the price you paid times three for the suggested retail price.

If you’re the only owner of your business, you should be the only financial decision maker, too. Consider the choice to hand out your company credit card carefully, as your ability to include purchases in a tax write off may be negatively influenced.

Where are your customers located? Find out where they are and do what you can to reach out and communicate with them. While you can effectively increase your customer base via the Internet, don’t forget to take advantage of marketing opportunities through traditional offline methods, as well. Check out local business expos because it’s a great way to generate customers.

When running a business from home, it is important to be part of a network of your peers. Find other people to put on your affiliate team. Even though these people may own a business in a different field, you can use them as a source of motivation which can provide inspiration in building a successful home business.

Since you will be spending the majority of time at your desk, it is worth your money to make it as comfortable as possible. Craning your neck in order to see the screen on your computer will make you uncomfortable or worse yet, could lead to some sort of permanent damage. If you are going to be sitting at your desk for long periods of time, purchase a good desk chair. This is also true for your keyboard, mouse pad, mouse, lights, etc. You can start with around 200 dollars.

When setting up your home business, be sure to have a properly written business plan. Every business, no matter how large or small, needs a comprehensive list of goals. Put in writing what your goals are, how you intend to accomplish those goals and what resources it will require. Following a business plan helps you stay focused as your company grows.

As you have just learned, there are many people trying to sell you on scams. However, as you’ve learned throughout this article, there are also many common-sense tips and tactics that you can use in order to grow your home business. If you’re willing to put in the work, you can certainly be successful.