Can accounts receivable factoring help your business grow
Below is a MRR and PLR article in category Business -> subcategory Small Business.
Can Accounts Receivable Factoring Help Your Business Grow?
Summary:
Is your business in need of financing and facing hurdles with bank loans? Discover accounts receivable factoring?"an innovative solution to finance your business efficiently.The Challenge of Slow-Paying Clients
Does your business grapple with slow-paying yet valuable clients? It’s a common challenge: your greatest assets can sometimes be liabilities. Despite this, slow-paying clients are a reality that business owners must adapt to. Typically, commercial clients settle their bills in 30 to 60 days, but recently, this trend has worsened. So, what can you do about slow receivables?
The Limits of Traditional Bank Loans
Many business owners turn to banks for loans, but obtaining one can be surprisingly difficult. Banks often require long, established histories, making loans inaccessible for newer companies or those recovering from tough times.
The Solution: Accounts Receivable Factoring
If waiting up to 60 days for payment is your biggest challenge, accounts receivable factoring could be the answer. Commonly called factoring, this form of financing eliminates the usual wait for payment, providing necessary funds to pay suppliers, make payroll, and seize new business opportunities.
How Factoring Works:
1. Complete your work and send an invoice to your client and a copy to the factoring company.
2. The factoring company advances you 70% to 90% of the invoice, holding a small reserve for disputes.
3. Receive funds within 24 hours.
4. Once your client pays the invoice, the factoring company rebates the reserve, minus a small fee.
Why Consider Factoring?
Accounts receivable factoring provides quick, hassle-free access to funds, usually within 24 hours of invoicing. Additionally, it is easy to qualify for, with accounts set up in as little as four business days. Unlike traditional loans, the main requirement is to engage with creditworthy clients. If you work with strong commercial clients or the government, factoring can be an invaluable tool for your business.
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