Invoice Factoring Birmingham AL

This article is about invoice factoring together with its benefits and advance.

Local Companies

American General Financial Services
(205) 988-8371
3659 Lorna Rd
Birmingham, AL
GE Capital Commercial Equipment
(205) 443-0371
2090 Columbiana Rd
Birmingham, AL
Alacom Finance
(205) 942-3360
117 S Crest Dr Ste 100
Birmingham, AL
Wells Fargo Financial
(205) 979-2355
3081 Lorna Rd Ste 108
Birmingham, AL
Frontier Investment Management
(205) 995-1180
15207 Kenley Way
Birmingham, AL
Credit Finance Inc
(205) 458-4465
1120 3rd Ave N
Birmingham, AL
First Commercial Bank
(205) 879-2800
Birmingham, AL
Buyer's Financial Service Inc
(205) 836-1157
7212 1st Ave N
Birmingham, AL
National Finance and Discount Co Inc
(205) 323-1691
2002 2nd Ave N
Birmingham, AL
1st Franklin Financial
(205) 854-2743
1679 Center Point Pkwy Ste 101
Birmingham, AL

Introduction to Factoring

Invoice factoring, (also called accounts receivable finance, or accounts receivable factoring) is a form of commercial finance whereby a business sells its accounts receivable (in the form of invoices) at a discount. Factoring is considered off balance sheet financing in that it is not a form of debt or a form of equity. Factoring is a financing option for young, under-capitalized businesses that have the profit margins to absorb the factor's fee. Factoring is a flexible form of loan, which advances money to a company as it issues new invoices. It is a widely used financial product that transacts over $70 billion of volume each year in the United States alone, and is one of the most popular forms of financing in Europe. Factoring is one of the oldest and most powerful cash flow and management tools available to businesses today. It is not a loan and will not show up as debt on your company’s balance sheet. It is designed for businesses that want to improve their cash flow by not waiting 30, 45, 60 days for a customer to pay.

Factoring Benefits

Factoring invoices gives you predictable cash flow. This increased cash flow allows you to take advantage of growth opportunities, early pay discounts, reduce debt or cover operating expenses. If you are concerned with your ability to meet payrolls because of unpredictable cash flow you are a candidate. If your business has seasonal peaks that create cash flow dilemmas, you are a candidate. Factoring is a very simple tool that provides you with predictable cash flow. Cash flow planning and control can become skewed due to uncertainty of payment dates. It creates the needed control over your cash flow that translates into greater production, sales and profitability.

Factoring Advance

Advanced funding is wired to your business bank account. This can involve a very substantial payment being made right at the start, with most factors paying 70% to 90% through initial advance of the invoice amount followed by a small additional payment, through reserve release, once they collect the invoice. Remember that the credit-worthiness of your customers will have an impact on the advance and discount rates coming from the factoring company. For example if the invoice's value is $1,000 an advance rate of 80% equals $800. The balance of the advance is called the "Reserve".

Conclusion

Factoring is a way to get immediate cash. Factoring is a long established and mainstream financing option for businesses. Invoice factoring is the time honored and increasingly utilized financial tool that speeds client cash flow and helps avoid the problems that slow-paying customers can create for fast-growing companies. It has become a financial tool used by growth oriented business to increase working capital. It is a fast, easy and flexible way to improve your cash flow and generate working capital for your company so you can achieve the success you are striving for.

About the Author:

Greg de Vries is the VP of Marketing for Business to Business Capital Corp – America’s Friendliest Factor. Please visit BTB Capital Corp at http://www.btbcapital.com to receive a no-cost, no-obligation proposal for factoring or contact us at info@btbcapital.com.






Article Source:

thePhantomWriters Article Submission Service

Related Articles
- Factoring Account Receivables Birmingham AL
Factoring account receivables is an important service from which many companies would benefit, for reasons of freeing up cash flow and having more operating capital. In today's business world, accounts receivables can often have the effect of holding up a company's much needed cash, which would otherwise be used to purchase more supplies and expand business.
- Factoring Birmingham AL
- Invoice Factoring And Invoice Discounting Birmingham AL
- Understanding Cash Flow Birmingham AL
- Invoice Factoring Birmingham AL
- Buying Invoices Birmingham AL
- Factoring Fundamentals - Vendor Financing Birmingham AL
- Factoring Services Birmingham AL
- Using Invoice Discounting For Cash Flow Birmingham AL
- Invoice Factoring As A Short-term Cash Flow Solution Birmingham AL
Related Articles
- Factoring Account Receivables Birmingham AL
Factoring account receivables is an important service from which many companies would benefit, for reasons of freeing up cash flow and having more operating capital. In today's business world, accounts receivables can often have the effect of holding up a company's much needed cash, which would otherwise be used to purchase more supplies and expand business.
- Factoring Birmingham AL
- Invoice Factoring And Invoice Discounting Birmingham AL
- Understanding Cash Flow Birmingham AL
- Invoice Factoring Birmingham AL
- Buying Invoices Birmingham AL
- Factoring Fundamentals - Vendor Financing Birmingham AL
- Factoring Services Birmingham AL
- Using Invoice Discounting For Cash Flow Birmingham AL
- Invoice Factoring As A Short-term Cash Flow Solution Birmingham AL

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
Advertising Family Home Services Real Estate Resources
Business Services Fashion Industrial Goods & Services Retail & Consumer Services
Career Financial Services Insurance Software
Cars Food & Beverage Internet Technology
Computer Hardware Franchise Legal Telecommunications
Construction Health Miscellaneous Trade Shows
Education Holidays Nightlife Travel
Entertainment Home Appliances Online Database Weddings
Environmental Home Electronics Pets World History