March 13th, 2008 | 
Author: 
Tj Atkins asked:
The Bold Report
Factoring: Is it Right For Your Business?
What are you going to do? Your request for a business loan has been turned down for the third time and you don’t have relationships at any of the other banks. Your business is doing well despite the economy, yet banks and other lenders have tightened their requirements making it nearly impossible to get the financing you need. The media and politicians talk incessantly about money for small business but is it anywhere to be found? Frustrated and worried, you keep wondering if there’s some way to grow your business in spite of your need for capital.
There is a solution that is often overlooked and rarely found at banks. It’s called factoring accounts receivable or factoring for short. So what is factoring…besides a really tough Algebra question? Basically, factoring happens when a factor (company that does factoring) purchases a companies’ receivables at a discount, giving that company cash immediately. Factors will typically advance from 70% – 95% of your receivable, depending on several variables that include, amounts, frequency, credit worthiness of company paying, etc. Once the receivable is paid you get paid the remainder minus a fee. These can range from 1% – 4% of the value of the receivable.
So where and why would you want to consider factoring? Well, the scenario painted above is a perfect example for a company with good flowing receivables from credit worthy customers. Factoring works well for many types of companies, staffing, trucking, manufacturing, services oriented and many more. In some cases it can be a lifesaver for a company that is struggling, yet lands a lucrative contract or order. With bank lending getting tighter, factoring can allow your company to grow and take on more opportunities by having the cash immediately to purchased inventory, raw materials, hire more staff, implement more marketing or pay for outside services. In any case, it can eliminate the frustrations and ease the worries for you, the business owner.
Ok…I’d like to check out this factoring thing what do I do. Look no further, here’s an expert with more than 13 years of commercial finance experience and knows how to avoid the challenges and pitfalls that can hit inexperienced business owners. Let me introduce, Brandon Bauer, President of Business Group of Brokers. Brandon is a professional in finding the best financial solution for you, solving your cash challenges quickly. Feel free to contact Brandon directly at: BoldReport@MyBGB.com.
The Bold Report is a resource for small to mid-sized businesses. We provide timely, thoughtful and business growing information so that you, the business owner can grab it within your busy schedule. DK Bold has been a successful entrepreneur for more than 7 years, helping individuals and businesses build wealth. To have DK help you with your online marketing and financing needs, contact him directly at: DKBold@DKBold.com.
What Is Account Receivable
The Bold Report
Factoring: Is it Right For Your Business?
What are you going to do? Your request for a business loan has been turned down for the third time and you don’t have relationships at any of the other banks. Your business is doing well despite the economy, yet banks and other lenders have tightened their requirements making it nearly impossible to get the financing you need. The media and politicians talk incessantly about money for small business but is it anywhere to be found? Frustrated and worried, you keep wondering if there’s some way to grow your business in spite of your need for capital.
There is a solution that is often overlooked and rarely found at banks. It’s called factoring accounts receivable or factoring for short. So what is factoring…besides a really tough Algebra question? Basically, factoring happens when a factor (company that does factoring) purchases a companies’ receivables at a discount, giving that company cash immediately. Factors will typically advance from 70% – 95% of your receivable, depending on several variables that include, amounts, frequency, credit worthiness of company paying, etc. Once the receivable is paid you get paid the remainder minus a fee. These can range from 1% – 4% of the value of the receivable.
So where and why would you want to consider factoring? Well, the scenario painted above is a perfect example for a company with good flowing receivables from credit worthy customers. Factoring works well for many types of companies, staffing, trucking, manufacturing, services oriented and many more. In some cases it can be a lifesaver for a company that is struggling, yet lands a lucrative contract or order. With bank lending getting tighter, factoring can allow your company to grow and take on more opportunities by having the cash immediately to purchased inventory, raw materials, hire more staff, implement more marketing or pay for outside services. In any case, it can eliminate the frustrations and ease the worries for you, the business owner.
Ok…I’d like to check out this factoring thing what do I do. Look no further, here’s an expert with more than 13 years of commercial finance experience and knows how to avoid the challenges and pitfalls that can hit inexperienced business owners. Let me introduce, Brandon Bauer, President of Business Group of Brokers. Brandon is a professional in finding the best financial solution for you, solving your cash challenges quickly. Feel free to contact Brandon directly at: BoldReport@MyBGB.com.
The Bold Report is a resource for small to mid-sized businesses. We provide timely, thoughtful and business growing information so that you, the business owner can grab it within your busy schedule. DK Bold has been a successful entrepreneur for more than 7 years, helping individuals and businesses build wealth. To have DK help you with your online marketing and financing needs, contact him directly at: DKBold@DKBold.com.
What Is Account Receivable
About Wade Henderson
Wade Henderson: Domestic and International Business Finance since 1995 specializing in challenge situations. "We prefer to find a way to get your loan done as opposed to finding a reason to turn it down.” Connect with me on Google+
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