Factoring your accounts receivable not only increases cash flow, but provides numerous other benefits and opportunities.

Advantages of Factoring

• Fast & Easy
• Improve Cash Flow
• Leverage Off Customers Credit
• No Consideration of a Business's Credit Rating
• Continuous Source of Operating Cash
• Client Gets Detailed Management Reports
  
• Faster Payment
• Not Creating Debt – no monthly payments or balloon
• No Personal Guarantees
• No Geographical Limitations
• Reduces Overhead — helps business downsize so they can concentrate on growing their business
• Greater Operating Efficiency
• Off Balance Sheet Financing
• The "Time Value" of Money
• Retain Control of the Business – don't give up equity
• Reduces Bad Debt
• Professional Collections
• Offer Credit Terms to Customers
• Meet Increasing Sales Demands
• Stop Offering Early Payment Discounts

Reasons for Factoring
With the advantage of positive cash flow, factoring clients:

• increase working capital by establishing an additional, ongoing source of cash
• increase cash turnover and pay bills, taxes, etc., on time
• get cash for operating expenses when they need it
• get cash when they can't get financing elsewhere
• avoid giving up equity or control, as they would in traditional financing
• protect & improve their credit rating
• avoid long-term debt
• avoid repayment of debt at inopportune times
• take advantage of trade discounts by having the cash available to pay up-front for supplies, equipment, etc.
• take advantage of volume discounts and other spur of the moment opportunities that require cash
• get instant credit reports on prospective customers and the continuous monitoring of the credit status of all their customers

Who Needs Factoring?

• Small and medium size businesses, including new businesses and women and minority owned businesses, that can't get conventional financing
• Any business that needs additional operating capital
• Businesses that want to expand and need a cash flow injection
• Businesses with tax liens (or problems they are trying to work out with a taxing authority before a lien is put into place)
• Businesses that are working through either Chapter 11 or a bankruptcy