Advantages to Factoring

There are several advantages to factoring, such as:

• Maximizes the cash available to you: Factoring provides more cash than traditional bank lines of credit. And you can get cash when you can't get financing elsewhere.
• Cash flow is more predictable: In addition to speeding up your cash flow, factoring also makes it easier to manage your cash since your invoicing is more predictable than when customer payments will be received.
• Flexibility with your financing: Factor when you want, as much as you want, and for as long as you want.
• No arbitrary line of credit amount: You borrow based on your sales activity so you are automatically set up to finance your growth.
• No Consideration of a Business's Credit Rating: When you factor invoices, we only take your client's ability to pay into consideration. Not yours!
• Retain Control of the Business – don't give up equity: Because factoring is not a loan, you avoid giving up equity or control, as you would in traditional financing.
• Reduces Overhead: Helps businesses downsize so they can concentrate on growing their business.

Read more at: http://www.sscapitalpartners.com/Factoring-Pg2.htm

 

The 7 Steps to factoring your invoices

There are essentially 7 steps to factoring. They are as follows:

1. Your business provides a product or service to another business or government entity
2. You invoice your customer for the product or service rendered
3. You sell the invoice to a Factor. An advance is given, usually within 24 hours via electronic bank transfer, bank wire, or check
4. Your customer sends the payment for the invoice to the Factor
5. Factor receives payment, then keeps amount advanced plus a fee
6. Factor pays rebate/remaining amount to you.
7. Repeat 

Factoring is not a loan with interest due, but rather the purchase of an asset at a discounted rate from the face value of the asset. Factoring clients are not paying an interest rate as they would with a bank loan, just as they would if they were giving terms to a customer for early payment. In this way, you have much greater control over your monthly financial statements. You choose how many invoices to sell each month based on your needs. With a bank loan or credit advance, you pay the bank interest each month regardless of how your business is doing.

If this sounds like something that may be of interest to your company, contact us for more information. http://www.sscapitalpartners.com

Could factoring help your business

If you can answer yes to any of the following questions, then factoring just may be the answer to your current financial situation.

 

• Is your cash tied up in unpaid invoices?
• Is payroll your largest expense?
• Are you growing but increasingly short of cash?
• Have you been in business only a short amount of time?
• Have banks refused to extend you any credit?

Depending on your company's situation, you may also benefit from an Asset Based financial solution. There are many great factoring companies out there, many that only work with specific types of companies (construction, retail, etc). You need to pick the company that will provide your company with the best service and also be able to provide basic information when you need it. One company to look at is: http://www.sscapitalpartners.com

 

Factoring Info

Factoring is a quick and flexible form of financing which substantially improves your company's cash flow without creating debt. Many companies get into a cash bind by extending credit to their customers for 30, 60, or 90+ days while having to immediately fund certain costs, particularly payroll. This problem only gets worse as sales grow. With factoring, your invoices are used as collateral for a short term financial solution which provides you immediate cash with which to meet these expenses. http://www.sscapitalpartners.com