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Accounts
Receivable Financing
- Modern
Factoring Can Grow your Business
Many growing companies get stock. They cannot accept a larger, more
profitable job because they do not have the funds to finance it. A
large amount of working capital can be tied up in accounts receivable.
Modern factoring, at reasonable rates, can help a business get the
capital it needs.
Benefits of Factoring
- Immediate Cash Flow Increase
- Based on your customer's credit rather
than your credit rating
- Ability to take advantage of
early
payment discounts and buying in larger quantities because you are not
dependent on customers paying the last job to cover new materials,
inventory and payroll.
- The factoring company frequently collects
your
debt so your people do not have to be the "bad guy" and can be devoted
to higher profit activities.
- Frequently "no recourse" to you if the
customer does not pay or is a slow pay.
What is Factoring?
Factoring is essentially Buying invoices from a business at a discount.
In modern factoring, this discount ranges from 5% to 10% based upon the
type of business and the credit worthiness of the customers. Typically,
money is paid within a day or two of the invoice by the Factoring
company.
Like a Being Paid with a Credit Card
Even though factoring has been around for thousands of years,
information and technology has lowered the costs and improved the
benefits. Similar to a customer paying by credit card, when the
customer is invoiced, the factor pays you. Typically, the payment is
70& to 90% of the invoiced amount. When the customer pays, the
factor takes its fee and pays you the balance.
Factoring is not a Loan
Factoring is not a loan, There is no debt repayment, no compromise to
your balance sheet, no long-term agreements or delays associated with
other methods of raising capital. Factoring allows you to use
your assets to create cash for the growth needs of your
business.
I can help you determine if factoring is right for your business. I
also locate and negotiate with the factor. Call me at (856) 665-2121 OR EMAIL me. |
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Ronald J. Cappuccio, J.D.,
LL.M.(Tax)
Counsellor
at Law
1800 Chapel Avenue West, Suite 128
Cherry Hill, NJ 08002 USA
Phone (856) 665-2121
Fax (856) 665-9005
Email: Ron@TaxEsq.com
© Copyright
1996-2008 Ronald
J. Cappuccio, J.D., LL.M.(Tax) All Rights Reserved
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