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Information on Selling Accounts Receivable For
the business manager who spends a good portion of the day collecting,
bookkeeping and searching for capital, the entire factoring package offers
peace of mind. The manager can actually
focus on important aspects of the business that are often pushed aside, such as
marketing and production. Depending
on the agreement, businesses can pick and choose which invoices they wish to
sell to the factor, who immediately advances eighty percent or more of the face
value of the invoices. The balance of
the funds, less the discount fee, is released once the invoice is
collected. The
cost of doing business with an accounts receivable factoring company is the discount taken on the
invoices submitted for funding. Fees
range from 3 to 9 percent, depending on volume, credit-worthiness of the
customers sold and overall risk. The
discount taken is best compared to a merchant accepting a Visa or MasterCard
transaction and receiving immediate payment, less a percentage or discount,
before the actual cardholder has paid his or her monthly statement. Setting
up a factoring relationship to sell your acounts receivables is quick and easy in comparison to other forms of
financing. Applications simply call for
basic company information and a customer list.
Years of profitability are not required which makes factoring an option
for startups generating receivables. It
is possible that funding can occur in as little as a couple of days after the
receipt of the application and invoices.
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We are a nationwide receivables factoring company offering Our customers tell us that our combination Up to 97% "In all my
years of finance experience I have found you as being the best source,
your personal touch and commitment to us has made our relationship a great
blend of business and friendship."
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