WHY DOES FACTORING MAKE COMPANIES PROFITABLE?
Factoring is the purchase of some or all of the valid Accounts Receivables for goods and services that have been completed in business to business, or business to government transactions, at a discount. In many ways, Accounts Receivable Funding is similar to improving your working capital cash-flow by offering your customers a cash discount for paying their invoices more quickly. To determine if your company would benefit from factoring, ask yourself one simple question: “What would my firm do with the cash, if every bill was paid upon issuance, all of the time?” If your company would be able to grow faster, obtain needed supplies or equipment, meet payrolls or thrive if cash-flow delays were eliminated, you are a perfect candidate for factoring. FACTORING IS A SMART BUSINESS STRATEGY: Factoring gives your business the power to grow, without giving away equity or taking on debt. Contrary to what you may have heard, factoring is not a tool used only by struggling companies. Financially
