Link This |
Email this |
Blog This |
Comments (0)
What is Factoring?
October 31, 2008
Factoring is a financing tool that provides your company with the necessary capital to operate the business, pay suppliers and grow. However, factoring is not a business loan. Rather, factoring involves selling your invoices at a discount for immediate cash. The factoring company waits to get paid, while you get immediate use of the funds.
Factoring companies make their profit on the fees they charge for their services, which start at around 1.5% of the financed receivables. Most factoring companies don't insure against non-payment. If your customer defaults, you have to pay back the money you've been advanced.
Posted by Shanu Singh Guliani on October 31, 2008 | Comments (0)
