What is Factoring?

Factoring (a.k.a. Accounts Receivable Financing) has a long-standing history and is nowadays widely used as a preferred business financing solution in many industries. It is - simply put - the process of selling your accounts receivable (invoices) at a discount.

Factoring is not a loan or equity financing. It does not create any debt, so you are never burdened with any fixed costs or periodic payments.

It is a cash flow solution that doesn’t involve borrowing or giving up any ownership in your business, and since there is no debt or equity involved, it is a lot more flexible than most other forms of business financing.

In fact, it works just like an open, interest-free credit line that can grow with your business as you need it, without you having to re-apply ever again.

Any business that is not a “cash & carry” can benefit from Factoring, as long as an invoice is generated, and a verifiable product or service is delivered to a creditworthy business or a government entity.

Why would you possibly want to wait 15, 30, 45 days or more for your customers to pay their invoices?
 

Ease and Simplicity

Factoring is a very simple, quick, and efficient way to improve your cash flow immediately without creating new debt. In fact, this is one of the benefits that make Factoring so unique and attractive!

And converting your accounts receivable into immediate cash is almost like turning your business into a COD operation with a process that is straightforward and most convenient:

The Funding Process
Step 1:

Contact us to discuss and define your needs
 

Step 2:

Complete a short application

Step 3:

You will receive our proposal with the best funding solution for your review

Step 4:

Once you agree, your account is opened, and you’re ready to factor your invoices

Step 5:

Invoices are checked, and the funds are advanced to you within 24 – 48 hours

Ask yourself 6 simple questions
1.

Is your business sometimes short on cash, i.e., is your A/P cycle shorter than your A/R cycle?

2.

Can a better cash flow help you take advantage of supplier discounts or generate more sales?

3.

Could you accept more or bigger orders or hire more people or better stay on top of your operational expenses or payroll, if you only had more working capital available?

4.

Would your business benefit, if your customers paid their invoices sooner or even on a C.O.D. basis?

5.

Is your income affected by seasonal slowdowns?

6.

Is your business growing at such a rapid pace that your cash flow can‘t keep up with the growth?

Experience across many industry sectors and businesses suggests that even a single “yes” to any of these questions can make Factoring extremely advantageous for you!

As a matter of fact, a healthy and constant cash flow is crucial for any business and its growth or survival at any time, regardless of its life cycle stage

So don’t let cash flow challenges get in the way of your business and success any longer. Ask us how we can help.


...view Process flow

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