It provides greater liquidity; the capital of the firm is not locked. It is like if you do not get your payments on the time when you require them the most, invoice factoring can be a solution.

1. The Mechanism of Receivables Financing

2. What could be the benefits of the asset based lending to your business?
There are many worthy advantages that Receivables Financing, Invoice
Factoring gives to boost your business and has even worked to maintain
a strong position in times of financial constraints. It on the very first
place, allows having a great amount of liquidity to your business that
gives you accessibility and flexibility with funds. Besides this, there are
other points as well.

3. It provides greater liquidity; the capital of the firm is not locked. It is like
if you do not get your payments on the time when you require them the
most, invoice factoring can be a solution. It is really the easiest way to
turn your receivables into cash than waiting for the regular 90 day period
to end and then the invoice gets cashed. You could easily approach a
factoring firm for this purpose to get easy cash. They would look at the
position of your firm and then at the worthiness of the customers. Once
satisfied, they would offer to purchase your invoices against cash.

4. Once the credit period is over, the debtor who is the customer would
pay to the factor directly and thus ends the transaction. However, one
should not confuse it with bank loan or asset based lending as it is
simply purchase of one asset for another. Though the benefits of both
are same. Both are providing liquidity to the business and helping in
growth of business. There are two parties involved in the bank case but
here even the customer is involved as a third party.

5. As liquidity increases, cash flow increases. You may buy more
inventories and cash discounts could be given to customers again which
makes them happy. A much healthier balance sheet would be the result
and thus position of the firm appears to be secure and stronger.

6. Then you may have greater control over the activities of your firm. You
would have all the flexibility in using your assets; have a greater amount of
cash flow to carry out transactions. Receivables Financing, Invoice Factoring
is competitive. Each factor might have a different charging rate, so one
should go for the factor that charges minimum fees and allows maximum
amount of cash to be given against the invoice. A rather faster way to do
this is also called single invoice factoring or spot factoring. The growing
trend is surely safer to deal with and ensure profits in the long run as well.

7. When you work with Capital Funding Solutions, you are working
with a company: Will strive to find the best and most effective
financial Solution for your business and we ensure your
success. So what are waiting for contact us now :
Phone: 877-545-1311
Fax: 954-525-1366
Website : http://www.cfsfunds.com