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What is Factoring?
Find out whether factoring can work for your company! -
Factoring
Worksheet -
What is Factoring?
Factoring (accounts receivable financing) is the process of selling your accounts receivable so that you
have cash flow to buy materials, pay company bills and meet payroll.
In
general terms, factoring is a line of credit. It allows you to receive
70-80% of your invoices upon delivery and acceptance. Powers Funding
Group then collects each receivable and remits the 20-30% balance to
you, less a discount which is our fee.
How Does Factoring Work?
Factoring provides immediate cash for day-to-day expenses, overhead,
payroll purchasing, while your customers rest assured that their work is
progressing on time and on budget.
When Does Your Business Benefit from Factoring?
- If your business is under-capitalized
- If you are in danger of not meeting payroll
- If you are without a credit history
- If you are looking to expand operations
- If you are trying to increase sales
- If you need to accurately plan your monthly revenues
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