Factoring - Accounts Receivables Funding

Could your business use cash now to fund current expense with future income?

With Receivables Funding (Factoring) you can improve your credit rating while having cash for funding payroll, an expansion of the business or other projects requiring working capital

Sometimes you cannot get financing for your business through a bank, but you have promised future income through accounts receivables or outstanding invoices. Wouldn't it be nice if you could get a lump sum of cash now for that future income stream? Then you could focus on your business and not have to worry when the receivables will be paid. The Oliver Company is here to facilitate turning money owed to you into cash in hand now.

Receivables Funding (factoring) is sometimes more appropriate than bank financing, because:

• Accounts receivable funding is based only on the accounts receivable. A client's ability to raise cash by Receivables Funding is based on the total accounts receivable, rather than on traditional measures of financial strength and stability.



• Receivables funding provides continuing cash flow without the requirement of periodic payments or interim payoffs. New sales continuously creates new power to obtain cash, and the business does not have to deal with renewal of loans or worry about maturity dates.



• Factoring gives a business increased access to cash as sales and receivables increase. There is no ceiling beyond which the factor must stop providing cash. The more sales a business makes, the more cash it can draw. The factor does not concentrate on the business debt/equity ratio to provide funds, as banks do.



• Factoring offers a dependable, continuing source of cash without the necessity of making separate loan applications.



• Receivables funding avoids the necessity of obtaining funds from venture capitalists, who receive an interest in the business and generally have a say in how the business is run.



• Receivables funding saves the business owner precious time waiting for a loan board to grant or deny his or her loan. Loan boards' decisions are influenced by many considerations, and the outcome is often unpredictable. With factoring, periodic delays and negotiations are eliminated, allowing the business owner time to do what he or she does best - run the business.



• Because of the added cash factoring can provide, you have extra bargaining power in dealing with suppliers. You can take advantage of quantity discounts, or prompt payment discounts.

Contact a cash flow professional for a Free Consultation! Call us: 619.426.9883   E-mail us: info@Biz-CashFlow.net