Convert Receivables Into Cash Via Factoring
For
small or growing companies, much of their working capital is often
taking its time to arrive from the client. These companies depend on
that capital, and more important that it arrives on time. These
struggles can impair a companies growth and damage supplier
relations.
You
can convert these receivables into cash via factoring.
When factoring you do not have to factor all of you’re receivable,
some companies choose to select only a portion of their clients.
Essentially what you will be doing is converting your accounts
receivable to cash with a purchase and sale agreement. You typically
receive 80 percent of the invoice value upfront. Then you receive the
remaining value once the client pays the factor, minus a factoring
fee.
Technorati Tags: factoring, invoice factoring
Related Tags: No Tags

























