Receivables Factoring Helping Businesses Grow
(For immediate release) Miami, Florida – Waiting up to 60 days to get invoices paid is a common challenge for business owners. Receivables factoring, a business financing tool, can eliminate the wait and get business owners paid in as little as 2 days.
Receivable factoring eliminates the long invoice payment cycles, allowing business owners to cash their invoices in just a few days. This allows them to easily meet payroll and supplier responsibilities. It also provides them with resources to capture new opportunities and grow their businesses. And in many cases, factoring invoices can work better than a business loan or line of credit because it has no set limits. You can usually finance all your sales, provided they are to credit worthy clients.
“Invoice factoring is a great financing tool for businesses owners,” said Marco Terry, president of Invoice Factoring Group. “It provides them with the necessary financing to grow their businesses without the onerous requirements of business loans” he later added.
Receivable factoring is simple to use and works as follows:
- You deliver products/services to your clients
- You invoice your clients and then finance the invoice with a factoring company
- The factoring company advances you up to 90% of your invoice (depending on the transaction). This is your first installment.
- Once the invoice is paid, the factoring company rebates you the remaining funds (second installment) less a small fee
Aside form general business factoring, receivables factoring also has industry subspecialties including medical factoring for healthcare, freight factoring for trucking and construction factoring for the construction industry.