Buried under piles of accounts receivable, employers are desperate to pursue their debtors seeking a way to obtain liquidity. But unsafe for some and uncertain for others, Discount Factoring or Invoice Discounting will give your company a cash injection and it could become an alternative that would help heal the depressed financial statements and provide greater liquidity and dynamism to businesses.
Discount Factoring has almost doubled worldwide in the last ten years, and indeed, many banks have entire factoring departments. According to experts in the field of Discount Factoring, one of the greatest benefits that arise from this activity is specialization. Factoring companies specialize in the process of the collection of accounts receivable. Discount Factoring allows companies that contract their services to invest time to their own businesses rather than go running after their debtors, with all costs involved.
Also known as Factoring, Discount Factoring is a financing mechanism in which in the short term a company or individual entrepreneur sells its accounts receivable to an existing factoring company. The company, in exchange for a commission and the presentation of certain documents, provides cash within a time period that can vary between 48 and 72 hours.
There are many advantages to Discount Factoring. First of all, it injects cash to your company right away. This cash can help you withstand all the costs related to seasonal sales. Second of all, it helps you face your liabilities and improve your relationship with the suppliers by buying in greater quantities and paying on time. Thirdly, Discount Factoring rationalizes the risk of losses due to unpaid accounts receivable and reducing the costs related to the collection process. Lastly, it adds more formality to the collection process.
Discount Factoring helps you to
The reasons why you should turn to Discount Factoring are:
Better cash flow and less likelihood of acquiring new liabilities
Better prices and discounts from supplies when paying on time
Higher speed in asset and capital rotation
More flexibility in funding for your customers and higher stability in your sales.
Ameliorate your productivity by reducing operative costs.
Discount Factoring has almost doubled worldwide in the last ten years, and indeed, many banks have entire factoring departments. According to experts in the field of Discount Factoring, one of the greatest benefits that arise from this activity is specialization. Factoring companies specialize in the process of the collection of accounts receivable. Discount Factoring allows companies that contract their services to invest time to their own businesses rather than go running after their debtors, with all costs involved.
Also known as Factoring, Discount Factoring is a financing mechanism in which in the short term a company or individual entrepreneur sells its accounts receivable to an existing factoring company. The company, in exchange for a commission and the presentation of certain documents, provides cash within a time period that can vary between 48 and 72 hours.
There are many advantages to Discount Factoring. First of all, it injects cash to your company right away. This cash can help you withstand all the costs related to seasonal sales. Second of all, it helps you face your liabilities and improve your relationship with the suppliers by buying in greater quantities and paying on time. Thirdly, Discount Factoring rationalizes the risk of losses due to unpaid accounts receivable and reducing the costs related to the collection process. Lastly, it adds more formality to the collection process.
Discount Factoring helps you to
The reasons why you should turn to Discount Factoring are:
Better cash flow and less likelihood of acquiring new liabilities
Better prices and discounts from supplies when paying on time
Higher speed in asset and capital rotation
More flexibility in funding for your customers and higher stability in your sales.
Ameliorate your productivity by reducing operative costs.
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Pro-BargainHunter.com Multiple Pre-Screened Vendors competing for your business Small Business Factoring Receivable Financing
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