Why wait weeks or months to get paid by your clients when you can access your money in a matter of days by factoring your invoices. When a business factors their invoices, they are allowing a third party to purchase their invoices at a discount price. This discount is considered the third party’s fee.

If your business receives orders from customers on a regular basis, but has to wait 30, 60, or even 90 days for payment, you maybe experiencing a crunch in your cash flow. Factoring gives you the opportunity to access your cash within days not weeks or months. The growth of your company depends on whether or not you have the working capital necessary to finance your expansion.

When a factor purchases a company’s invoice or invoices, no interest is ever charged. This is because factoring is considered an outright purchase. When a company sells their invoices to a factor, they can expect to receive an advance up to 90% or more of their accounts receivable. The business gets this money immediately and the factor makes a fee for this service, turning the transaction into a win-win situation for both parties.

Factoring is no longer a business tool used by the large Fortune 500 Companies. Small to midsize businesses are receiving tremendous benefits by implementing factoring as part of their financial strategies. If your business is growing at a faster rate than your cash flow, maybe it’s time to explore an alternative solution such as accounts receivable funding.

Marty Milan works with businesses to help them generate a continuous stream of cash flow without the occurrence of debt. In addition to accounts receivable funding, you can read on various topics such as lawsuit funding, structured settlements, selling your private mortgage notes and more at: www.cashflowaccess.com. Email at cashflowaccess@aol.com.

Other articles include: To Factor or Not to Factor?

A Quick Note From The Publisher... If you like the article above, you may be interested in the following article which is also related to Structured Settlements... Structured Settlements – Should You Sell Yours? In recent years, it has become more common for victims of accidental injury who accept a settlement from the at-fault party to accept a structured settlement instead of a lump-sum payment. With a structured settlement, the injured party receives payments over an agreed-upon length of time – five years, ten years, or even a lifetime, rather than receiving payment up front in a lump sum. There are advantages to this for both parties. The injured party may require constant medical care, and the regular payments of a structured settlement guarantee that income will be available to cover the medical expenses. For the paying party, the settlement can be paid by purchasing an annuity, which allows an upfront payment to accrue interest, thereby producing a larger long-term yield from a minimal investment. In many cases, a structured settlement is viewed as a win-win situation for both parties. There are restrictions on structured settlements that may not suit everyone. Once you agree to...