What are the Benefits of Factoring?

Factoring or discounting your accounts receivable can give you that peace of mind knowing you have a way to increase your cash flow. You can manage how much and when you factor based on your needs. Your credit limits are based on your outstanding invoices not your company balance sheet so you can access more capital than a conventional line of credit. The Benefits of Factoring:

  1. It’s not a loan so there is no debt associated to factoring its simply the sale of an asset.
  2. You don’t have to give up equity in your company or use your house for collateral.
  3. The credit limits are based on the strength of the debtors not just on your balance sheet.
  4. New companies who have invoices outstanding can use factoring until they establish themselves.
  5. If need to collect receivables to buy from your supplier factoring can help.
  6. If your company is growing and a bank line will not provide enough capital you can factor on an interim basis.
  7. When you get behind in taxes use factoring to get back on track instead.
  8. Factoring will help companies that don’t have a good receivable system by providing accounts receivable management services.
  9. Factoring can help you take advantage of supplier discounts that you couldn’t afford to take.
  10. If you have a bank line that needs to be paid off factoring can help you get that done. Discounting your invoices after will provide cash flow until you’re ready to approach a bank again.

Tell us what you need and we’ll work with you.

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