subject: Invoice factoring: A great way to finance your business! [print this page] Invoice factoring: A great way to finance your business!
Every business, whether small or big in scale, has to deal with unpaid invoices or accounts receivable. Most commercial clients across various industries like to pay their invoices within 30-45 days. Business owners have to bear the expenses of manufacturing and delivering their products and services on time, only to get payment after 30-60 days.
More often than not, businesses have more money tied up in their unpaid invoices than actual cash in their accounts. Missed payrolls, no payments to suppliers of raw materials, and non-production of goods are just a few of the many problems that businesses face in such circumstances.
Under such conditions, a business must either finance itself to keep things going or succumb to the pressure of accounts receivable, only to let its competitors move ahead of it in the market. For businesses that wish to grow despite all odds, invoice factoring is a wonderful solution.
Invoice factoring is a potent tool that lets businesses capitalize on their biggest asset their invoices. To put things simply, it allows a business to turn its slow paying invoices from good customers in to immediate cash. The almost cash' invoice is traded for actual cash.
There are invoice factoring companies that provide financing options solely on the basis of your soon to be paid' invoices. The higher the market reputation and creditworthiness of the companies that you trade with, the better are your chances of enjoying invoice factoring.
Accounts receivable factoring companies do not offer loan for your invoices. They buy them from you directly, though at a small discount. If you have accounts receivables and nonpaid invoices from good customers, any invoice factoring company would be glad to buy your invoices and offer you finance that you require for running your business smoothly.
The best part about invoice factoring is that it is a quick and really easy way to finance your business. You have to wait for days and months and you need to complete endless formalities for getting loan from banks and financial institutions. Invoice factoring companies understand the urgency of having adequate capital in running a business successfully and therefore offer quick cash against accounts receivables and unpaid invoices to let their clients enjoy seamless business operations.
Those interested in enjoying accounts receivable factoring/invoice factoring, please visit factoringquotes.com The website offers up to 99% funding on credit worthy accounts receivables within 24 hours or less.
