Factoring
SunState
Consulting provides accounts receivable factoring (invoice factoring) to businesses worldwide. We factor receivables to get you the
working capital you need to allow your business to grow without the
hassles of collecting from your customers. Factoring improves cash flow by
allowing for faster turnover of your
money.
Overview:
Accounts receivable factoring (invoice factoring) is the selling of
your receivables (invoices) for cash now rather than waiting 30-90 days
or more for your customers to pay you. Factoring is a great and
relatively inexpensive way to improve your cash flow and get the working
capital your business needs.
SunState Consulting provides assistance for companies in their search
to factor receivables. We have found
that generally equity financing is harder to find and once found it
takes longer to consummate than debt financing. Having said that, it has
been our experience that some companies, especially start-up companies,
have been turned down by banks because of the loan underwriting
criteria. Many businesses have
not considered accounts receivable factoring when looking for financing,
possibly because they do not understand it.
Conventional borrowing increases a business' expenses and normally
requires additional collateral. In the case of factoring, instead of
analyzing a business' financial statements, the business is evaluated on
the strength of its accounts receivable. If the business has a product
or service that it provides to a credit-worthy customer, then the
business is a candidate for factoring. A typical advance is anywhere
from 80% to as high as 95%, depending on the industry and volume of
business. Factoring does not create debt or require additional
collateral. It is very simple to use. Cash can be obtained for invoices
normally in 24 hours or less, and as often as the business needs.
Capital for Investment:
SSC has access to funding in excess of $200 million for factoring of
receivables.
Industry Focus:
Manufacturing, distribution and service
companies. SSC can also provide factoring for medical and
construction receivables.
Investment Criteria:
Preferred Size of Investment:
$1,000 to $10 million
Discount Rate:
Between 1.5% and 5% per invoice
Type of Securities:
Verifiable invoices for goods or services
Can Factoring Help Your Business?
Factoring services are normally less expensive than maintaining an in-house
credit and collection department. Usually, at no cost to the business, the
factor will provide extensive credit management and consulting. In effect, a
factoring company may act as an accounts receivable department. This can
minimize recurring cash flow problems and bad debt losses.
The main benefit of factoring is the availability of cash on a regular basis.
This ultimately improves the profitability of the business, maintains good
credit ratings for the business, allows the business to take advantage of
discounts for purchases, avoids interest and penalties, funds expansion and
growth plans of the business and allows the business to spend more time
specializing in its area of business.
Click
Here to Apply for Factoring Online.
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