Factoring

 

 

The benefits of Accounts Receivable Funding

 

Simply put, accounts receivable funding is the purchase of accounts receivable from a business at a discount.

 

It is designed for businesses that need money immediately, and can't afford to wait 30, 60 or 90 days for a customer to pay. In most cases, either the business owner's "back is against the wall" and he can't meet his cash demands (because for example, his customers are slow to pay or income is low due to a seasonal slowdown), or his business is growing so rapidly that its cash flow can't keep up with its growth.

 

Widely accepted as an alternative financing source, accounts receivable funding is used extensively in almost every industry by companies that need immediate cash - either for growth or survival - and may or may not qualify for traditional loans or grants.

 

Some of the more common industries that rely on accounts receivable funding to maintain a steady flow of cash include:

 

  • Personnel / temporary agencies

  • Trucking companies

  • Caterers

  • Commercial printers

  • Commercial bakeries

  • Manufacturers

  • Wholesalers

  • Importers

  • Distributors

  • Apparel

  • Professional services (legal, accounting)

  • Medical groups

  • Physicians

  • Hospitals

  • Nursing homes

  • Assisted living facilities

  • Construction companies

 

 

Any business that is not "cash and carry" (like a hair salon or dry cleaner) can benefit from accounts receivable funding, as long as an invoice is generated and a verifiable product or service is delivered. Accounts receivable funding:

  • Offers you immediate and dependable access to unlimited working capital

  • Quickly strengthens your company's financial statements and credit rating

  • Makes it possible for you to obtain cash discounts for early payment of your accounts payable (or any other debts)

  • Gives you the ability to offer better credit terms to your clients

  • Increases your purchasing power and provides cash for marketing, expansion and new equipment

  • Can enable you to meet payroll, pay your taxes on time and eliminate the need to file for bankruptcy

 

How J.B. Funding Services Can Help You

With an innovative and comprehensive accounts receivable funding program, you exchange your commercial accounts receivables for cash. When an invoice is generated, a funding company purchases it and may advance up to 75 to 85 percent of the invoice amount. Then, when your customer pays the invoice, you receive the remaining balanc, minus a nominal fee.

 

You have the advantage of:

A simple, streamlined application and quick approval process. (Unlike bank loans that can take weeks to process and require volumes of paperwork, most applications are approved within 24 to 48 hours.)

  • Low fees - with no minimums

  • Flexible short- and long-term payment arrangements

As part of an accounts receivable funding program, we do extensive research to assess your customers' credit worthiness for you. In addition, the funder's hands-on entrepreneurial team can provide you with proven management and accounting to further maximize your company's ability to reach and surpass its bottom line potential.

 

For more information on factoring, please contact us.

 

"Funding Without Creating Debt"

 

 
ACFA
Copyright JB Funding Services, 2007 - 2008, All Rights Reserved
 
 
Site Courtesy of

Tepato Systems, Inc.