Thursday, October 20, 2011

Factoring: an alternative way to finance your business


Factoring is a way to raise additional working capital quickly in order to fulfil orders from your customers. 

Commonly businesses have to extend credit to their customers which in turn become accounts receivable in their cash flow. Factoring bridges this credit gap by enabling a business to get a percentage of their accounts receivable instead of having to wait the 30, 60 or 90 days indicated on their invoice.
 
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