How,factoring,financing,can,pr business, insurance How factoring financing can provide the business financing y
As we all know to live in this world we have to perform some activity by which we can earn money. There are many activities by which we can earn money and meet the standards to live in this society. And from one of them is franchise. Franc Small offices have unique needs, and thatincludes document shredding. Designed with the smaller business inmind, the Dahle 20314 is a cross-cut shredder that offers Level 3security and brings you into compliance with federal regulations. The
Looking for small business financing has always been a challenge for company owners. Even in good times, qualifying for the financing you need has been difficult. As a rule, most banks require that your company has a track record of success and they need a few years worth of financial history. Most importantly, institutions want to make sure you have collateral things like equipment and real estate to back your business loan. Because of this, many industries with no hard assets such as staffing and consulting have a hard time obtaining business loans. There are others form of financing that can help business owners at least in some specific situations. One form of financing that has been gaining traction in the past few years is invoice factoring. It can be an ideal solution for companies that are waiting 30 to 60 days to get their invoices paid, but need the money sooner. For example, lets say that a staffing agency invoices $200,000 to a client that will be pay in 45 days. In the meantime, the agency needs to pay employee salaries every two weeks. If the company does not have enough capital to pay employees while waiting to get paid, then it will run into problems. In this case, a solution is to get an advance on the invoice by factoring it. In a factoring transaction, the factoring company advances funds against an invoice. The advance is usually 70% to 90% of the invoices and varies by industry. The advance provides working capital that enables the owners to meet payroll and other business expenses. Once your client pays the invoice in full, you get the remaining funds, less the factoring fee. The fee varies based on a number of parameters but can range from 1.5% to 4.0% for an invoice payable in 30 days. Qualifying for a/r factoring is relatively easy, when compared to other business financing products. To qualify, the company must be in good standing, free of any liens and have a roster of good paying customers. Factoring companies consider your invoices to be your biggest asset and are very happy to use those as collateral. That makes their services accessible to companies of all sizes, including startups. More importantly, it provides funds to companies whose biggest assets are a good reputation and a list of solid clients.
How,factoring,financing,can,pr