even successful ones

What is factoring anyway? Factoring is the selling of accounts receivables, or invoices, to a third party (factor) for cash. A valuable option for companies with changing cash needs, factoring gives companies immediate cash to manage operations more efficiently, and to help grow their business. Factoring takes place in almost every industry. Factoring is a service that covers the financing and collection of account receivables in domestic and international trade. It is an ongoing arrangement between the client and Factor, where invoices raised on open account sales of goods and services are regularly assigned to "the Factor" for financing, collection and sales ledger administration.

Factoring companies provide financing by making advances on a business' accounts receivables, using invoices as collateral. An invoice is defined as a product and/or service that has been delivered/completed and accepted by a creditworthy customer. Factoring is NOT a loan, so there is no debt to repay. A factoring company purchases your invoices at a discount. Factoring (also known as Invoice Financing) is the practice of selling your accounts receivable (invoices) at a discount to another company. You get the money from the company that you sold your accounts receivable to and they become responsible for collecting on the invoices.

Unlike a traditional loan, factoring does not add debt to your balance sheet and there are no loans to repay. Factoring is available as either a Confidential or Notification service. If you would prefer that your customers not know that you are using Factoring, then choose the confidential service (subject to credit approval). Advance of money, not a loan, so it does not come with debt. It does not require giving up a part of your company. Advance rates range from 80% to 97% of the gross invoice amount.

Accounts receivable factoring fees are calculated by how long it takes your customer to pay a factored invoice. Keystone charges a fixed percentage every 10 days an invoice is outstanding. Accounts Receivable Funding is quickly becoming a popular choice for its flexibility and rapid injection of needed capital. Accounts receivables may be the biggest asset on a company's balance sheet. They also represent the business best source of operating capital that is in permanent disuse. Accounts receivable factoring is an ideal solution for companies in the staffing, services, and manufacturing and transportation industries.

Business loans are simply not available to companies unless they have stellar credit and impeccable financials. Business start-ups that have sufficient accounts receivable volumes and sales turnover levels will also find factoring a valuable financing tool. Businesses that are just starting out have more than simply office space and utility bills to concern themselves with. Before they ever produce a deliverable that will bring income, they must hire and possibly pay employees, purchase the resources required to produce the deliverables and search for other clients that will allow them to repeat this cycle. Cash flow is one of the main reasons businesses fail. At one time or another, every business, even successful ones, has experienced poor cash flow.

Are ready you ready to expanded your Business and tap into your hidden treasure, your invoices!