Factoring: What's In It For You?
by Sandra Noble, President, MBA, DCFS, Six
Sigma, CPIM
Noble Finances / Noble &
Associates Consulting, Inc.
Factoring or Accounts Receivable
Financing is a tool for providing working capital and cash flow to
businesses of all sizes and in all industries. It is especially useful
for startups and for small, minority, women-owned and / or disadvantaged
companies. There are many reasons why Factoring should be considered.
Would you like less stress, enhanced productivity, more money? Below I have highlighted some of the benefits.
Less Stress
ØQUALIFYING: If you’re a start up or already have
significant debt, you can still qualify for this financing. Funding is
based on the financial strength of your customers.
ØCONTROL: No longer do your customers determine your cash
flow. No longer are you held hostage to the whims of your customers. And
you are freed of credit term abuses.
ØGOODWILL: Paying suppliers on time improves vendor
relations and fosters good will. Suppliers are incented to provide
better and more timely goods and services. This is a win-win situation.
Vendors are better able to survive and support your expansion and
growth.
ØFLEXIBLE: No obligations, no minimums, and no maximums.
You can take advantages of strategies that would limit your fees, such
as delaying the submission of invoices.
ØPEACE OF MIND: You’ll have freedom from worry about how to
meet payroll and pay tax obligations. You’ll have sufficient working
capital to eliminate these concerns.
Enhanced
Productivity
ØPREDICTABLE: You have access to a steady, predictable cash
flow. Invoices can be submitted daily.
ØGROWTH: Factoring provides the working capital you need to
fund business fund growth in general and to fund new lines of products
or services, in particular.
ØSCALABLE: Your funding grows as your business grows. No
need to re-apply for a new or increased loan or line of credit.
ØCOLLECTIONS: The factor handles the collections. This
frees up time spent on collections. Factoring clients generally have
faster payments, since customers tend to pay financial entities faster
than they pay other corporations.
More Money
ØSPEED: the initial application process is fast, usually
within a week. Then, as you generate and submit your invoices, CA$H is
deposited into your bank account in 24 to 48 hours.
ØUNLIMITED: Virtually unlimited funds are available. We try
to match you up with a factor / funding source that can handle current
and future growth. But, in the unlikely event that you do exceed the
capabilities of the funding company, Noble Finance$ will assist in
converting your account so that you have uninterrupted cash flow.
ØCOST SAVINGS: Factoring clients have the ability to take
advantage of early payment discounts from their suppliers. Additional
savings are made when you can take advantage of volume discounts. These
savings can significantly offset the factoring expenses.
DIFFERENTIATION: Without concerns about cash flow, you can attract more
business by offering better terms on your invoices. Most companies
negotiate on price to win business in a competitive market. Factoring
allows you to negotiate with terms instead of, or in addition to price.
Noble Finance$:
Accelerating Cash Flow!
A Diversified Cash Flow Specialist (DCFS) company, certified by the
American Cash Flow Institute®.
Noble Finances
is a division of Noble & Associates Consulting, Inc.
-------------------------------------------------------------------------------------------------------------------------
Noble & Associates Consulting specializes in I.T. Needs /
Strategy Assessments, unbiased Software Selection assistance, and curing
Post Implementation DistressSM. We also have full life cycle
implementation expertise in SAP, Oracle and other enterprise-wide
software solutions.
