Nearly all business owners experience cash flow shortages. This is particularly true when their business is young and/or growing rapidly. Unfortunately, securing a bank loan is sometimes difficult. This is often the case for a new business with no credit history or a company with a blemished history or poor credit score. Factoring accounts receivable provides a flexible alternative for companies that need access to more cash. Here are some of the benefits of factoring accounts receivable.
Here Are 12 Benefits For Factoring Accounts Receivable
1. Obtain Cash Quickly
Brand new clients at Caps Funding can secure cash with their receivables in as little as 48 hours. Repeat customers can do the same in 24 hours or less. Try doing that with a bank!
2. E-Z Flexible terms
Caps Funding does not require a long-term contract nor a minimum or maximum amount to do business. My clients can select the particular invoices they want factored. Caps Funding strives to make the process streamlined for all parties involved.
3. Cash Flow Without Liabilities
Factoring of accounts receivable is not a loan. No debt is added to the balance sheet. When my clients factor their accounts receivable, they are able to maintain a cleaner balance sheet with no added monthly payments.
4. Stay In Control Of Your Business
Caps Funding does not tell clients which accounts receivable to factor. That's the company owner's decision. When requested, Caps Funding can offer advice on which accounts to factor.
5. No Legal Fees
Transactions with Caps Funding are kept simple. I only require three documents, one of which is the invoice my clients choose to factor.
6. Low Factoring Fees
Most customers are surprised at how inexpensive it is to factor with me. Of course, fees vary depending upon industry, dollar value of invoice, creditworthiness of the company's customers, and volume of business. To find out exactly what my fees are, give me a call at (803) 429-3686.
7. Good Credit Is Not Vital
My client's credit history is not the most important factor in the business relationship. I value the quality of my client's customers, not their own creditworthiness.
8. No Financial Statements Required
Caps Funding will not ask clients to submit financial statements nor tax returns.
9. Reduce Financial Stress
With readily available cash on hand from sale of invoices, my clients can make their payments on time, pay their employees, buy additional inventory, purchase labor-reducing equipment, and pay their taxes. What a relief!
10. Use Factoring To Increase Sales
My clients can increase their sales by offering new and better credit terms to larger customers without worrying about cash flow shortage.
11. Increase Profitability
Caps Funding will show clients new ways to make money that exceed small factoring fees. My clients can utilize the cash that I provide to benefit from early payment discounts or purchase larger inventories at lower prices.
12. Receivable Management
Caps Funding will assume the responsibility of collecting cash payments on the receivables that clients factor. This can reduce in-house expenses and increase the turn time on receivables.
Call Me To Get Started!
Are you ready to factor your accounts receivable? Do you have more questions? Dial (803) 429-3686 to speak to me, Charles at Caps Funding, LLC. I will be pleased to answer any questions that you may still have and/or help you get started!
