Press Release: Factoring Invoices Providing Easy Business Financing
(For immediate release) Miami, Florida – Miami, Florida – Business that need financing can now depend on factoring their invoices as a source of steady working capital. One of the biggest challenges for small to mid sized companies is waiting up to 60 days to get paid for their invoices. Factoring invoices fixes that problem and provides immediate capital right after invoicing, enabling business owners to easily pay salaries and suppliers.
Obtaining business financing has always been challenging for business owners. Business loans have always been hard to get. Further more, a business loan many times proves inflexible for the needs of growing businesses. That is why sometimes, a factoring company can help your business more than a bank can. Receivables factoring financing is easy to obtain and can be setup in a few days.
Accounts receivable factoring works as follows:
- Your company delivers the goods/services and invoices
- The factoring company advances you the first financing installment of 70% to 90% of the invoice.
- You get immediate use of the cash
- Once your client pays the invoice, the factor provides you with the second installment (the remaining 10% to 30%), less a small factoring fee.
Factoring works for most industries where the payer is another business. It also has a number of industry subspecialties. Truck drivers and freight brokers can use freight bill factoring. Construction subcontractors can use construction factoring. Healthcare providers can used medical factoring. Any other type of business will do well with general invoice factoring.
The most interesting feature of receivables factoring is that the factoring company is buying your invoices. Since they own the invoice, their biggest concern is that the payer (your client) is creditworthy. This is important because it also means that a new business that has a roster of strong credit worthy customer can easily obtain factoring, since their biggest asset are its invoices. It’s truly a product where you can leverage the financial strength of your customers.
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