Can Factoring Help Your Business?

SunState Consulting provides assistance to companies in need of working capital to maintain or expand their business. The main objective of factoring or financing purchase orders is to increase your working capital. Factoring and purchase order financing allow you to use funds that are advanced against your receivables or purchase orders as working capital. By taking advantage of both factoring and purchase order financing, you will be able to manufacture or purchase goods, ship them to your customers, and offer your customers terms without any up front out-of-pocket costs.

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 expertise.

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.

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