Cash Flow Solutions Through Factoring

Are slow paying customer's with 30-60 day payment payment terms causing cash flow problems for your business? Even with sales increasing, is your company finding it harder and harder to meet it's weekly payroll?

If the answer to either question is "yes", then your small business may need the world's most commonly employed solution to such financial problems associated with cash flow. Your business may need Accounts Receivable FACTORING!

Factoring Solutions for Cash Flow

Accessible by Almost Any Small Business Operating B2B

Though historically associated with the textile and garment industries, factoring is now employed by all types of small businesses operating in virtually every known industry and sector. It is considered a "vital" method of small business finance by the world's central banks and is often characterized by it's flexibility and ease of access.

Types of companies employing the financial power of factoring include...

SERVICES COMPANIES: such as staffing, commercial cleaning, guard/security, transportation, environmental, advertising, catering, medical labs, oil services and thousands more
MANUFACTURERS / DISTRIBUTORS: all types of small and mid-size manufactures producing products both inside and outside of U.S. borders
CONSTRUCTION SUB-CONTRACTING COMPANIES: including site preparers, masons, equipment operators, plumbers, framers, electricians, roofing companies, welders, etc.

Can My Business Qualify for Factoring?

Factoring is considered to be the most accessible form of finance for small businesses that operate B2B. And...the reason is simple. Although factors advance immediate cash to their clients at the time of sale, the client's credit history (or lack thereof) is of a secondary concern to factors when it comes to extending credit. That's because factors will actually be repaid for their advance by a client's customers when they pay their invoice.

Factoring can be accessed by almost any small business that...

Sells goods or services to creditworthy customers
Generates $25,000 or more monthly in verifiable invoices
Sells to customers without condition under normal 30-75 day terms of payment
Has free and clear invoices that are not pledged as collateral for a previous loan to a bank or similar lender
Does not have significant federal tax liens

How Factoring Works

Factoring is an exceptionally simple form of commercial finance whereby a finance company, known as a factor, purchases invoices monthly, bi-weekly, weekly, or sometimes even daily. The factor...

provides an advance of cash (usually 80% - 85%) to it's client on invoices where goods and/or services have been verifiably delivered or performed
then waits for payment from the client's customers under their normal terms
rebates the additional payment balance of 15% to 20% (after the invoice is paid) to the client less a small factoring service fee.

Find Out More

You can find out a great deal more about factoring and if it's the right financial solution for the cash flow problems of your small business by...

requesting a copy of the SBF Center's FREE booklet: "When Banks Say NO...The Small Business guide to Factoring" or...
attending an SBF Center Small Business Finance Teleconference on factoring.