Cash Flow

Written by Linda Alexander
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Improve your company's cash flow with accounts receivable funding, or factoring. You can sell your receivables at a discount and receive immediate cash in exchange. The factoring company will collect on your invoices without you having to worry about them. You can then use the cash to make payroll, buy supplies and inventory, or put it toward your company's growth.

Generating Cash Flow with Factoring

When you want to generate cash flow this way, you just send your invoices to the factoring service. They will advance you between 50 and 80 percent of the cash, usually within 24 to 48 hours. Later, when the invoices become due, they collect from your customers, deduct a percentage for a fee, and pay the balance to you.

Factoring is a great way to increase cash flow without having to borrow money. Companies of all sizes and in all industries use it every day as a way to bridge the gap so they do not have to wait for their receivables. You can use it as a short-term solution, or as an ongoing way to balance out your cash flow.

Getting cash without borrowing money was never so easy before. You do not need to go to the bank and refinance your loans. You do not need to sell your business equity to receive venture capital. Instead, you can use your sales volume to receive cash as soon as you send out your monthly invoices.

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