Small Business Factoring rather then Loans

Finding the capital for a new business or business expansion is often the most difficult job an entrepreneur will undertake.  It is time consuming, stressful, and often frustrating, but a little planning and preparation beforehand will save you lots of aggravation and disappointment. Like any business partnership, which is what obtaining small business loans is, the partners want to be assured you have researched your options and know exactly what you need before coming to them for small business loans. Are you a business looking for small business loans ? There are many ways to generate cash flow. However, not all may be right for you. If your business is small or new, you may not qualify for traditional small business loans.  Or you may need cash flow assistance above and beyond such loans. If this situation sounds familiar an alternative may be a form of business financing called factoring.   A factor is a company that purchases receivables, giving your business an advance payment up front. It is a mode of small business loans  that can help free businesses from the cash-flow squeeze caused by slow-paying customers. As an end result, a business can generate instant capital and more easily predict and manage its cash flow. Companies in the services industry are particularly well-suited to factoring as small business loans tool. Temporary employment agencies illustrate the process well. Temporary employees placed by the employment agencies must get paid on a weekly basis but many of the clients are larger companies that may take longer to pay. Factoring can help such a firm cover its cash flow. Despite the benefits of factoring, many businesses do not take advantage of this business loans tool, either because they are unaware of its availability or due to misperceptions on how it works. Factoring has been used as an alternative to small business loans  around the world for more than four centuries as a respected way to manage cash flow. For example, nearly all of the business loans done in the garment industry is done through factoring. Additionally, every time a restaurant processes a payment by credit card, it is engaging in a process similar to factoring, since the credit card processing company advances the restaurant the payment immediately and then collects the money.   Today, it is estimated that factoring is a $100-billion-a-year industry in the United States providing an alternative to business loans. If you would like to take advantage of this alternative to small business loans, then call CapitalPlus today.


Business Factoring or Business financial factoring

Business Factoring is a fast, easy and flexible way to improve your cash flow and generate working capital for you company. With business financial factoring you get immediate access to cash that is normally tied up for 30 to 90 days while you wait for the collection of your invoices. This additional cash lets you take advantage of growth opportunities, reduce debt or pay daily or monthly operating expenses. Unlike a traditional loan, business factoring does not add debt to you balance sheet, and there are no loans to repay. By selling your accounts receivables to CapitalPlus rather than borrowing from a bank, you simply convert one asset (your invoices) into another asset (CASH). With Capitalplus' business factoring you can factor accounts receivables to improve your cash flow or to accelerate your growth. At CapitalPlus there are no long applications, no long term commitments required, no loan committees, and no audited financials required. Business factoring can be short term or part of an ongoing business financial plan. New companies can benefit from business financial factoring, since long term credit history is not a requirement. Business factoring is one of the most powerful cash management tools available to businesses today. Business financial factoring relies on the credit worthiness of your customers, no you or your company. So Business factoring with CapitalPlus is a fast, easy and reliable financial transaction that allows you to access cash based on the financial strength of your customers. Advantages of Business Factoring
  • CASH IN AS LITTLE AS 24 HOURS: Business Factoring provides you with the ability to meet your CASH FLOW NEEDS IMMEDIATELY!
  • NO DEBT CREATED: Loans require collateral limited by your hard assets. Business Factoring is NOT a loan, so there is no debt to repay. A business financial factoring company purchases your invoices at a discount. This enhances the financial ratios often used to determine your credit worthiness in obtaining other types of financing. Your balance sheet is more attractive and your financial position is strengthened.
  • HIGH ADVANCE RATE: CapitalPlus provides Higher Advance Rates which means you factor fewer invoices to meet your cash flow needs, which also means YOU WILL SAVE MONEY!
  • INVOICE PROCESSING: You can greatly reduce your cost of processing invoices because CapitalPlus handles much of the work.
  • ENHANCE YOUR CREDIT: Once you begin Business factoring (Business financial factoring), the increased cash flow will provide the liquidity to pay your venders on time. Making timely payments to vendors positively affects your credit rating and allows you to obtain credit from other vendors and financial institutions.
  • INCREASED PRODUCTIVITY: Business owners often spend more than half of their time on duties they do not find productive, such as collections, administration, bookkeeping, warding off creditors and searching for additional capital. Business Factoring drastically reduces this wasted time.
  • NO LOSS OF BUSINESS EQUITY: Ownership percentages remain unchanged with a Business factoring arrangement (unlike considering bringing in new partners with capital venture).
To put the advantages of Business Financial Factoring to work for your company contact CapitalPlus today.


Additional Invoice Factoring information

Read more information about small business financing using invoice factoring.
 

About Invoice Factoring