Accounts Receivable
Factoring

  Accounts receivable factoring is the selling of your invoices (accounts receivable) for cash versus waiting 30-60 days to be paid by your customer.

Factoring will get you the working capital you need now to improve your cash flow. You will be advanced 85-90% against the invoice you generate and pay you the balance less our fee (typically 2-1%) when the invoice is paid. Accounts receivable factoring is a tool that you can use to:
  • Raise additional working capital without borrowing
  • Improve business cash flow
  • Take discounts on material purchases
  • Finance to gain rapid sales growth
  • Pay off taxes and liens
  • Building Expansion
  • Advertise in print, radio, Internet or television
  • Remodel and upgrade
  • Cope with Emergencies
  • Purchase new equipment
  • Purchase additional inventory
  • Pay delinquent taxes
  • Cover research, product development costs
  • Buy out partners
  • Pay off Debts
  • Meet payroll
  • Outsource your collection process to professionals

Smart Business Funding will get government factoring for you when Government Contract Cash Flow Problems are your headache. Here is a couple of scenarios to show how accounts receivable factoring has improved the bottom-line for so many businesses just like yours:

Dilemma #1:

  • Temporary help agencies provides workers to businesses. The temporary employees are paid weekly while agency clients pay in 30-45 days. This uses up all liquid cash and limits growth. Some agencies have to turn away business and there are weeks payroll is difficult to cover!

    SOLUTION: Savvy owners of many temp agencies use factoring to purchase each invoice they generate. Making payroll is no longer an issue and now they can hire more temporary help to fuel growth. Smart!Verdana

Dilemma #2:

  • A small importers furnishes goods to major retail chains. Many large chain stores take 60-120 days to pay smaller suppliers. Most importers can't order more inventory to increase business.  Now,  small importer's overseas supplier is threatening to cut them off and the only way to get new orders is to accept all future shipments  by C.O.D.

    SOLUTION: Astute importers make use of smart business funding though factoring. This method pays suppliers directly when retail chains are invoiced. The importer can negotiate more favorable pricing and terms with their suppliers. Now the new pricing more than makes up for cost of factoring.  Beneficial!

This is just a couple of ways accounts receivable factoring can grow and develop your business.  Contact Smart Business Funding P.D.Q.!  Use our contact form.  If we can answer any additional questions... will be at your service.

 

  

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