Factoring Helps Businesses Manage Cash Flow
In these tough economic times, cash flow has taken a hit for even the most successful businesses. One client’s inability to pay on time has the potential to sink a number of businesses on down the line. But even if companies aren’t struggling, factoring can launch a powerful ability to grow the business, or help start-ups survive the outlay of cash until revenues start coming in.
So what is factoring, anyway? It’s a process by which a company sells its accounts receivables to receive the cash instantly. This can be critical when dealing with large companies or government municipalities who often pay 30, 60 or 90 days in arrears.
Factoring can help small and medium-sized businesses achieve optimal cash flow at a low cost and with no risk to the company. brandEXPANSION’s partner uses the full notification, non-recourse methods, which mean that debtors pay the funding company directly and the funding company assumes all the risk of collecting.
Our partner has helped cash-strapped manufacturing firms receive working capital to fill large orders, helped other businesses overcome sluggish cash flow due to lagging receivables and helped start-ups sustain until revenues began flowing. They have even helped companies that had negative cash flow and were in chapter 11 bankruptcy proceedings, working in all industries except medical and construction.
Not all companies qualify for this factoring program. Our partner typically works with small to medium-sized companies with revenues of $1 million to $50 million whose clients are large corporations or government agencies. Many competitors work with much small companies, advancing $75,000-$100,000 or larger firms that have the same underwriting processes as large banks. This funding company’s services are quick, with a typical deal closed and funded within five days. There is no audit required, either.
Factoring is a $100 billion industry and it is a widely accepted form of positive cash flow services for companies, meaning that using factoring will not reflect poorly on companies with their clients.
To learn more about how factoring can help your business or franchise overcome cash flow issues, contact brandEXPANSION today by filling out the contact form or email at info@brandexpansion.com or 480-607-2627.
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