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
That is so true. As an author and business man, I can relate to how you said "Flexibility with your financing: Factor when you want, as much as you want, and for as long as you want". I hope more people discover your blog because you really know what you're talking about. Can't wait to read more from you!
ReplyDeleteI agree! Flexibility with your financing: Aspect when you want, as much as you want, and for provided that you want.
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ReplyDeleteloans on invoices