Factoring: An Economic Business Recovery Strategy
Factoring companies exist to be able to provide small businesses with the working capital they need to meet obligations and grow. However, funding a new businesses can be challenging in today's economic times. The reality is that small businesses no longer need to be victims if they use factoring services.
If you do sales on credit terms this may eventually lead to the need for additional working capital. If sales are creating a cash flow shortage in your business, then your company may be able to benefit from factoring. Here are some tips from one of the leading factoring companies. Accounts receivable lenders, also known as factoring companies, specialize in financing growing businesses. Lending on accounts receivable simply is the advancing of funds against your accounts receivable. Factoring isn't the same as a loan, it's an advance or purchase of your receivables, so there's no need to make payments or accrue business or credit card debt. Once you get an accounts receivable loan, the lender, a factoring company, will use your company's accounts as collateral.
If you need help with accounts receivable factoring, purchase order financing, invoice purchasing, asset-based lending, post-bankruptcy invoice factoring, a solid, reputable factoring company. No matter what you decide to call it, invoice factoring or accounts receivable financing, and the services provided by a factoring company provide many small businesses with their own bailout plan to survive these tough times.
It appears as if small businesses, firms with fewer than 50 employees, in the United States are finally ramping up on hiring. Unemployment is still at nine percent, but experts think the trend for invoice factoring is happening due to more optimism plus economic recovery. A year ago at this time we were losing thousands of jobs monthly, according to ADP data who reported 100,000 jobs in February 2011. There were 101,000 in January and in December too.
In a ecent report from ADP, businesses defined as firms with fewer than 50 employees, started hiring in January 2010 and have been adding jobs consecutively for the last 12 months. This is a good sign for our economy. And it also appears that 46 percent of the 217,000 jobs were added by small businesses in February, most of which are labor or service-intensive jobs. Cash is needed by these small businessesin order to sustain, hire employees, pay their bills and to continue to grow and be profitable. More businesses are beginning to use the financial strategy of invoice factoring. Factoring companies have seen an increase in new small business customers interested in factoring services, who now use it as one of their prized business strategies.
About the Author
Kristin Gabriel works with The Interface Financial Group, a company providing financial and factoring services in the United States, Canada, the United Kingdom, Singapore, Australia and New Zealand. IFG offers expertise in invoice factoring, accounting, financing, law, marketing and banking. http://www.ifgnetwork.com
Tell others about
this page:
Comments? Questions? Email Here