subject: What Is Factoring: Your Personal Cash Machine [print this page] Your business is growing by leaps and bounds and you need extra cash to fuel its growth? Well, don't bother to knock on the doors of the bank as factoring can provide an apt solution for all your requirements. Factoring has emerged as one of the best alternatives for loans offering finance at very easy terms.
In strict financial terms, factoring is the process which involves selling your account receivables at a discount to a factoring company. The factoring companies generally advance up to 90% of the invoice value in cash. You will get back the remaining 10% as soon as the factoring company receives the amount from your account receivables. The company will deduct just a small processing fee and remit the remaining amount to you.
Factoring offers various benefits over the traditional loan process, as it is very flexible, easier to get and will provide you cash faster than a bank. It also offers an opportunity to companies to outsource their credit collections and credit investigation. One of the most popular methods of factoring is recourse factoring which will prove ideal for you if your account receivables have a great credit history but are slow to pay.
Factoring services have come as a boon for trucking companies which are facing immense challenges in todays economy. Companies are dealing with a falling dollar and a hike in fuel prices. A rise in wages is also eating into the profits of trucking companies. Factoring services help the trucking companies reduce their dependency the bank and structure their business in more flexible way.
Factoring services can be tailor made to suit your exact requirements while providing you with an easy source of capital. Factoring Companies also manage your account receivables on your behalf. The factoring company can act as your own personal credit department helping you to determine the credit history of all your customers.
Factoring is simply the best way to ensure that you don't have to worry about cash flow for your business.
Accutrac Capital Solutions offers factoring services. Visit our website at accutraccapital for more information about the company and our services.
by: Accutrac Capital Solutions
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