Can Factoring Help My Business? Factoring is unknown to many business owners, misunderstood by some, and often available to those who cannot obtain a small business loan from a bank, the SBA, or anywhere else. Factoring is an alternative means of business financing rapidly increasing in popularity, though it has been in existence for centuries. It is not a loan which create a debt on your balance sheet you must repay. Nor is it venture capital, which requires you to give up ownership in your company. Rather, factoring is the sale of an asset: your accounts receivable. That is, without having to pay back a bank or lose control of your company, you sell your invoices to a factor to obtain immediate cash. The process is repeated as often as you wish ? without the need to re-apply each time ? thereby providing steady cash flow that is limited only by your sales. Your factor is paid back by your customers; so as long as you factor steady (but slower), dependable-paying customers, you have no debt to repay and very predictable cash flow. While factoring's cost is higher than traditional bank loans, its flexibility offers several advantages that can both stabilize and steadily grow your business. Factoring: Sell Your Invoices Today, Get Cash Tomorrow explains everything you want to know about factoring your receivables, including: ? Types of businesses that qualify and the requirements to be approved.
? Why many companies turned down by banks are accepted by factors.
? What to expect in the application process and its speed compared to bank loans.
? Common factoring procedures and why they are utilized.
? How to inform your customers you are factoring in a way that strengthens your business.
? A flowchart of the pre-funding steps, plus another of a normal factoring transaction from start to finish. Who Is Jeff Callender? Jeff Callender entered the factoring world in 1994 as a broker, then soon began buying receivables of very small companies. For two decades he has helped numerous small business owners and funded hundreds of small companies. He has written multiple books, ebooks, and articles, and spoken often at industry events. Many factoring companies list his materials as required reading for new staff. In addition to this title, Jeff has written three ebooks for small business owners who want to learn more about factoring their receivables: ? Top 10 Quotes on the Benefits of Factoring.
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