|
|
Factoring accounts receivable on an ongoing basis is beneficial in a number of ways:
- Cash Flow - All sales can be turned into cash immediately.
- Customer Screening - Credit and financial information can be made available to assist in evaluating customers.
- Accounting - Agings, payment patterns, and collection reports better facilitate cash management.
- Enhanced Payment Terms - Your prospective customers will be offered more liberal payment terms.
- Increase Production/Sales - Grow without being impaired by a lack of capital.
- Create new markets - Increased cash flow allows you to broaden your market.
- No time requirements - You don't need to sign long-term contracts.
- Enhance your credit - You can pay your creditors on time.
- Take cash discounts - Offset factoring fees by taking the cash discounts offered by your suppliers.
- Aggressive Growth - Freedom from cash flow limitations allows maximum effort to be placed on sales and production.
- Nominal Cost - Fees are comparable to discounts offered for early payment
|
|
