1. “Advantages Of Factoring”
Ben10 Members:
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Ben Jose
Christeena James
Deepa Rose Jacob
Indu Sukumaran
Jenita
Stephanie
Binu

2. • Factoring
is
when
a
third-party
firm,
or
factor, “buys” a business’ accounts receivable and
gives the business a cash advance based on those
unpaid bills. The third party then takes over
collecting the owed receivables. The process
allows the business access to cash faster, rather
than waiting 30 or 60 days to collect payment from
customers.

4. • It’s a form of financing used by companies to
maintain cash flow.
•
It’s more common in certain industries where
immediate cash is necessary to operate the
business, like staffing, textile and printing firms.

6. Time Savings - Factoring can save your time and
efforts that would otherwise be spent on collecting
from customers. That energy can be redirected to
other
business-building
endeavors,
marketing and client development.
like
sales,

7. Good Use for Growth - You can use the instant cash
to
generate
growth,
maybe
hiring
another
salesperson who will bring in more business. Or
buying an advertisement that will reach new
customers. Or buying a piece of equipment that will
accelerate production.

8. Doesn’t Require Collateral - Unlike traditional bank
loans, factoring doesn’t require you to risk your
home or other property as collateral.

9. Qualify for More Funding - Factoring firms will typically
give a cash advance on up to 80% of your
receivables, that may be more than you would be
able to get from a bank.