Inadequate cash flow is the number one reason businesses fail. Period.
Factoring, sometimes known as accounts receivable financing, enables a company to better meet the daily operational demands of running a business. Take a staffing agency, for example: they invoice businesses monthly for staff they pay weekly. This financing program advances the business money on their outstanding invoices, allowing the company to have consistent cash flow.
The main benefit to factoring is flexibility. With factoring, you are tapping into money that is already owed to you. You can get advances on only some, or all of your invoices.
When can factoring help you?
- If your company is in survival mode, but you have a need for consistent cash flow to pay liabilities
- If your company has high material and supply costs just to finish the job
- If your company is already leveraged by existing debt
- If you are a start-up company with only have a few accounts receivable cycles
- If your company has been denied by banks for poor credit or few existing assets
Darrell Hornbacher
(303) 513-8664
darrell@midas-financial.com
