Companies of all types are turning to accounts receivable financing (AKA factoring) to gain access to a steady cash flow for their business. Sometimes it can be difficult to stay afloat when you’re dealing with daily business
expenses and demands. Or maybe your company’s business is steady but you’re still looking for a way to increase cash flow for seasonal demand.
Businesses of all success levels can benefit from factoring services. Traditional bank loans can take months to complete, and sometimes you need cash NOW. This is where invoice factoring services can come in handy.
In fact, many businesses find factoring to be an effective financial solution. Factoring delivers cash fast to allow you to get back on the road.
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8 accounts receivable financing facts you need to know
1. Got a question? Need some advice? Give us a ring. 800.705.1500
eCapital.com
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Unlike
traditional
ABLs,
factoring
does not
create debt
because
it is not a
loan.
Companies of all types are turning to accounts receivable financing (AKA
factoring) to gain access to a steady cash flow for their business. Sometimes
it can be difficult to stay afloat when you’re dealing with daily business
expenses and demands. Or maybe your company’s business is steady but
you’re still looking for a way to increase cash flow for seasonal demand.
Businesses of all success levels can benefit from factoring services.
Traditional bank loans can take months to complete, and sometimes you
need cash NOW. This is where invoice factoring services can come in handy.
In fact, many businesses find factoring to be an effective financial solution.
Factoring delivers cash fast to allow you to get back on the road.
8 accounts receivable financing facts you need to know:
1 No debt created. Unlike traditional ABLs (Asset Based Lending),
factoring does not create debt because it is not a loan. Since
a factoring company is purchasing your invoices and paying you
on those, it creates a more attractive balance sheet and
strengthens your financial circumstances.
2 Start-ups qualify. You have to jump through a lot of large and
difficult hoops to qualify for a bank loan as a start-up company.
Some banks won’t even lend to start-ups. Since factoring is based
on invoices, start-ups can easily qualify, allowing you to get to
business quickly and easily.
3 Save money and time on invoice processing. Once you begin
factoring your invoices, your factoring company starts handling
most of the invoicing work, which saves your company money
and helps increase productivity.
Factoring (fak-ter-ing):
The sale of a company’s
accounts receivable invoices
to a factor to obtain working
capital; this is also known as
receivables factoring, invoice
factoring, bill factoring,
accounts receivable factoring,
accounts receivable funding
and invoice discounting. It
is an popular method of
financing used worldwide
to help all types and size of
companies.
8 accounts receivable financing facts
YOU NEED TO KNOW
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2. Got a question? Need some advice? Give us a ring. 800.705.1500
eCapital.com
Who is eCapital
anyway? We’re in the
business of buying your
accounts receivable to give
you fast cash and financial
freedom.
Connect with us and
find out more.
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With factoring,
the increased
working
capital
provides you
the means to
pay your bills
and vendors
on time, which
positively
affects your
credit score.
4 Factoring is flexible. When you factor, you control which
customers you want to factor, allowing you to secure operating
cash that is flexible and meets your business needs.
5 Industry knowledge and savings programs. Factoring companies
generally have specific industry knowledge and understand the
needs and challenges of your business. They can also provide
helpful services and programs that help you save money on
business expenses.
6 Quick, painless account setup. It generally takes a few days
and minimal paperwork to set up a factoring account. You’re not
going to have to wait weeks for an underwriting process to see
your money!
7 Professional collection services. Factoring companies understand
the importance of professionalism in business relationships. They
treat all your debtors as if they are your biggest and best
customers, ensuring your business relationship remains secure.
8 Improve your credit. With factoring, the increased working
capital provides you the means to pay your bills and vendors on
time, which positively affects your credit score.
Need more reasons to factor? Contact one of our friendly factoring
consultants at 800.705.1500 for a no-obligation chat!
8 accounts receivable financing facts
YOU NEED TO KNOW