Thursday, January 22, 2009

Benefits

Accounts receivable financing offers the client company numerous benefits which help ensure the growth and the stability of the funded company. By factoring invoices, money can be obtained more quickly and provide much needed capital for the day to day operations of the company. The client company may actually be able to reduce overhead by paying some of their own invoices early enough to receive any discount offered.

A R Factoring AR Factoring


The client company enjoys the benefit of an increased credit rating by having the funds available to make payments on time and even ahead of schedule. In addition, since the client business now has the capital to operate on hand there is no reason to seek outside funding such as venture capital. Such funding options often require the relinquishment of equity in the company. Equity now can remain with the business owner.

Small Business Factoring Receivable Financing


Client companies also can reduce the amount of early payment discounts they offer their customers. This saves the client company money while still allowing that company to receive the funding needed to operate. Additional savings can be realized by volume discounts on purchases due to increased cooperating capital.

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