Get Fash Cash For Your Business With Invoice Factoring With No Loans, No Banks And No Debt

Every day, millions of companies use invoice factoring -- selling unpaid invoices to a third party at a discounted rate

. It is one of the oldest forms of financing in the world, dating back hundreds of years.

It is very popular. A Commercial Finance Association Survey found that asset-based loans totaled $600 billion in 2008, a figure that has grown since the 1970s.

But many people still don't know about invoice factoring, how to use it, or how it can benefit their business.

Invoice factoring is used by retailers around the world. It is used by many types of businesses, including service industries, retailers and health care companies.

There are many reasons businesses use invoice factoring:

*Get working capital

*Relieve stress from no-pay and slow-pay clients

*Fill more orders

*Increase sales with flexible funding

*Take advantage of vendor discounts

*Fund payroll and taxes

*Extend credit to customers on large orders

*Buy equipment or inventory on demand

How Invoice Factoring Can Benefit Your Business

Invoice factoring uses invoices to generate funds. An invoice is a promise to pay goods that have been delivered.

Typically, those invoices have terms that require the customer to pay between 30-90 days.

That's where the invoice discounting business comes in. Instead of waiting for the customer to pay an invoice, your company receives cash fast, in as little as 24 to 48 hours, from a third-party factoring company.

It is a good way to get cash quickly instead of waiting for clients to pay bills in 30, 60 or 90 days. Factoring provides advance payment upfront.

So now instead of waiting for clients to pay, you have the cash you need to invest in your business and expand your company.

It has many advantages: It allows quicker access to working capital and doesn't involve any banks. It is not a loan.

The factoring company relies on the client to pay the discounted invoice, not the originating company.

How Factoring Works

You produce two invoices; one is sent to send the customer and the other is sent to the factoring company. The factoring provider will pay you the pre-arranged advance on your invoice.

The customer pays your invoice and the balance of the payment is paid directly to you, minus the pre-agreed factoring fee.

Benefits of Invoice Factoring

The greatest benefit factoring is that it allows you to improve your cash flow -- without banks, time consuming loan applications and with no debt.

Although it is thought of as alternative financing, factoring has become more popular as businesses have found their existing lines of credit cut or virtually impossible to get new business loans.

Is Factoring Right For My Business?

To find out if factoring is for you, answer these questions:

Could additional working capital offset current operating expenses?

Do you need cash to grow your business or practice?

Has your business or practice exhausted traditional funding sources?

Do you need funds to take advantage of early payment discounts from suppliers?

Would an improved cash flow strengthen your balance sheet?

If you answered YES to any of those questions, invoice factoring may be for you.

by: Michael Moss

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