The Right Factoring Company Makes Growth Easier
Written by moxysupport on May 26, 2015
At US Funding, we are dedicated to providing fair and honest transactions to our valued clients. Part of this focus includes developing reasonable policies, implementing transparent processes, and increasing our customers’ understanding of procedures.
What Is Factoring?
Also called “accounts receivable financing,” factoring occurs when a company sells its outstanding invoices for a discounted price to a reputable firm such as US Funding. This provides an immediate supply of needed cash to fund the organization’s continued success instead of having to postpone decisions or actions until it is convenient for customers to pay. US Funding, then, collects payment for you on the invoices’ face value.
Many manufacturers experience cash flow that varies throughout the production year, with a large supply of ready cash available at some points and smaller totals at others. This ebb and flow makes it beneficial sometimes for businesses to rely on an accounts receivable financing plan to smooth out cash flow and enable uninterrupted operations.
The Logic Behind Factoring
Simply put, factoring is one way that manufacturing companies obtain needed money quickly. Reasons behind the need can be as varied as the industries that are involved in the transactions. Some businesses factor accounts because the amount of cash on hand is not enough to meet existing debt obligations. Others use this method to generate needed capital to grow new orders or contracts.
However, some may use this method just because it is their traditional method of conducting business. Whatever the underlying reason, in essence factoring simply allows you access to funds for immediate use.
For companies that have many accounts receivables with varying credit terms to manage, this financing option provides a more even cash flow and more predictable income projections with which to work. Each business will determine how much it should depend on factoring and how much of a cash reserve is needed on an on-going basis.
The inherent ebb and flow that is characteristic of a particular industry will determine how much of a balance a company needs to have on hand. And, this will be determined by the total amount by which cash flow can change and the period of time that income usually remains at its lowest point.
US Funding Specializes In Accounts Receivable Financing
We have provided clients with customized invoice factoring services for more than 16 years, with a combined 35 years of staff experience. We offer flexible plans that meet your specific needs, and our services are available with no application fee and no monthly payments. If, for example, your invoices are valued at $100,000, you would receive $85,000 immediately. When your customers pay in 30 or 60 or 90 days, we send you the remainder of $15,000 minus our fee.
Trust us to be your factoring company. You can have complete confidence that you will receive the money you need within 24 hours. Just click through online or call us at 866.812.9771 for a free, no-obligation consultation.