The Top 5 Reasons to Factor
Just the other day the question came up again- Why factor invoice receivables? Well the answer is easy. In fact there are 5 easy answers that I can think of off the top of my head. So here goes:
Reason number 1 is that factoring is the fastest and easiest process compared to all other forms of obtaining capital. In fact cash is normally received within 24 Hours or less. That is if your factor is on the ball.
Reason number 2 is that factoring enables you to add capital to your business in a non-loan format. In other words "Debt-Free"
Reason number 3 is that factoring reduces the stress caused by not having enough cash to meet business and other obligations. This one is reason enough to factor your invoice receivables.
Reason number 4 is that factoring is based on the financial strength of your customers, and not your personal FICO score and/or business credit score.
Reason number 5 is that factoring enables you to concentrate on important parts of your business instead of collecting money from your customers.
Of course the list goes on and on. Such as: Factoring provides consistent weekly cash flow to allow for better panning and growth. Factoring reduces administrative costs associated with collection activities. Factoring enables you to take advantage of vendor discounts. etc..
So there you have it. If you are not factoring your invoices you could be selling yourself short!
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