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“Advantages Of Factoring”
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Ben Jose
Christeena James
Deepa Rose Jacob
Indu Sukumaran
Jenita
Stephanie
Binu
• 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.
• 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.
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,
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.
Doesn’t Require Collateral - Unlike traditional bank

loans, factoring doesn’t require you to risk your
home or other property as collateral.
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.
Factoring

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Factoring

  • 1. “Advantages Of Factoring” Ben10 Members: × × × × × × × 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.
  • 3.
  • 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.
  • 5.
  • 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.