Accounts Receivable Factoring: A Source of Capital
By Lanette Tucker
During these tough economic times many franchisees have difficulty obtaining
working capital, factoring can be a quick and reasonably priced source of
capital. This article presents some reasons why.
When we begin our business venture, we usually expect less but do more. We see
the importance of exerting effort and dedication as a tool to grow our business
from small scale to medium and ultimately, to large scale. However, the growth
of our business can sometimes become perplexing because of costs. Perhaps you
have thought of seeking for help from banks but you wish you wouldn’t have to.
This unexplainable feeling of reservation is fine. No businessman would want his
business to stay stagnant. At the same time, we want to ensure that our business
will grow with the help of trustworthy corporate people and institutions.
Credit and unsavory loan companies will always be there if we need them but
we try not to seek their help because of ballooning interest rates and risks.
This is where factoring companies enter the scene. These companies take care
of financing the growth of your business without bombarding you with so many
problems later on. Factoring companies make use of accounts receivable factoring
or financing to help you out. This method will convert sales on credit terms for
the immediate influx of cash flow in your business. Factoring companies can
provide flexible working capital and additional management expertise in the
process of accounts receivable factoring. Unlike newly put up businesses selling
on credit terms, factoring companies will not pressure buyers, owners and
investors about eventually needing more capital when the business grows.
Accounts receivable factoring will offer you more financial strength because
you no longer have to loan from a bank just to provide credit terms to your
customers. These days, factoring companies are an ideal choice when managing
your business growth produces capital or money problems.
Now, picture this. It can take you weeks and even months to finally get your
request approved or not through a bank. Factoring companies understand how
precious time is. Therefore, you no longer need to wait for accounts receivable
factoring can be done in a matter of days! Factors make sure that the whole
process of financing our business ventures will require marginal paperwork and
that the approval process is simple.
For additional information, contact:
Paragon Financial Group
200 SE 9th St., Ft Lauderdale, FL 33316