If you have your own business you should definitely know about business factoring
. It allows you to have access to funds when you need them. It could mean the difference between your business floating or sinking. With the recent economic crisis bringing the cash flow reality into play, you may need alternatives to make sure that you are paid for invoices that have not been honored.
If you have to maintain collection efforts on your clients, you may find that you will waste much time and much money. You are simply not in the collection business. You may also keep them from buying from you in the future. This occurs to all kinds of businesses. It does not matter whether the company you run is one that is small or whether you have thousands working for you, in either case, you will still find business factoring to be a beneficial option.
The people who provide this service vary on how much that they will pay you. However, usually such amount is 90% of what is owed to you. This is until all of the debt has been collected. Then, the factoring company may retain 5% of such debt for itself.
This prevents your company suffering from laying off employees or stopping some services. It may even cause you to shut down.
There are different ways that you can apply for factoring funding and it depends on the urgency that you need the hard cash as to which method you choose. There are many that will offer this service online which gives you greater benefits as you could have the cash in your account within only 24 hours.
This means that you do not have to delay orders of other clients and wish losing their business due to the non payment of others that you have given credit to.
There are a few things that you must have to ensure that your application can go ahead easily. This includes the invoices that you have from the people or companies that have not paid up. This ensures that the factoring business has all the correct details. It also prevents them from paying on fraudulent claims.
Business factoring is much easier and quicker than obtaining a bank loan. You do not have to go through a credit check nor worry about paying back the loan. You simply receive money owed to you at a discounted rate.
This is an extremely useful service when you do not want to let others down including your customers and staff. At a time when many are struggling to keep their businesses going this method should be used much more than say bank loans. It is quick and easy and you will get your money.