Factoring-Invoices.com is now offering assistance to overstretched companies that are holding accounts receivable on to their books and need to remain liquid.
Cash flow can be a major problem for many businesses, especially in times of rapid expansion. Statistics reveal that rapid expansion can be a major factor in the failure of many businesses. The problem boils down to companies not having the resources to buy more raw materials, recruit extra staff or pay existing staff because of the time lapse between making sales and actually receiving the money for those sales.
Following the global credit crunch, traditional means of overcoming this problem, such as by raising bank loans, may no longer be available to overstretched companies. It is in situations like these that contracting the services of a factoring company can be very helpful.
In a nutshell, these companies buy the accounts receivable book from any client company that contracts with them. What this means is that the client company gets paid almost immediately once an invoice is generated and sent to the customer. The factoring business makes its money by deducting a percentage off the total amount invoiced.
As an example, Company A issues an invoice for $100 for goods sold to Company B. Company A has an arrangement with a factoring business. Once the invoice is generated, Company A receives say $80 from the factoring business, and the debt of Company B becomes payable to the factoring business. The benefit for Company A is that it does not have to wait for an extended period before it gets paid for the product or service delivered to Company B.
Company Name: eMarketingChampsContact Person: Faisal Kentan
Email:Send Email
Phone: 414.736.8394
Country: United States
Website: http://www.factoring-invoices.com/factoring-company/
Source: www.abnewswire.com
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