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How Invoice Factoring Can Benefit Your Business

December 5, 2009 at 2:33 pm
Once thought of as untraditional, invoice factoring in Atlanta is mainstream.
Tighter lending standards have all but forced businesses to consider factoring, after credit has been largely cut off. Now, invoice factoring — the process of selling a discounted invoice to a third-party –provides operating capital with no loans, no banks and no debt.

Increasingly, businesses now think of it is thought of as a viable alternative. It’s now not uncommon for companies to factor their invoices.

The Advantages Of Invoice Factoring

There are many advantages, but  there is one main benefit: Factoring provides immediate cash to companies that can’t wait 30, 60 or 90 days for clients to pay their invoices.

Factoring gives businesses cash upfront for the invoices. And now you have the operating funds to expand your business, meet payroll and cover other expenses.

There are many reasons businesses use it:

*Get working capital
*Relieve stress from no-pay and slow-pay clients
*Fill more orders
*Increase sales with flexible funding
*Take advantage of vendor discounts
*Fund payroll and taxes
*Extend credit to customers on large orders
*Buy equipment or inventory on demand

The Differences Between A Factor And A Business Loan

Factoring is not a loan. You don’t have to “qualify.” There isn’t any credit application and the factor won’t even look at your credit. The invoice discounter only cares about the financial health of the customer paying the invoice. 

There is no debt, and the process is usually quicker at just 24 to 48 hours than a bank loan.

How Factoring Works

It’s quite simple: You produce two invoices; one invoice is sent to send the customer and the other is sent to a factor. The factor will pay you the pre-arranged advance amount on your invoice.

The customer pays your invoice and the balance of the payment is paid directly to you, minus a pre-arranged fee.

For more information about how invoice factoring in Atlanta can benefit your business, visit MDS Funding at http://www.MDSFunding.com, contact MDS Funding at  866-394-4637 or email CashFlowConsultants@mdsfunding.com.

 

 

Comments
  • Ken August 12, 2014 at 7:49 pm

    .

    tnx for info….

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