Learn How And Why To Factor Receivables As A Strategy To Make Your Business Easier To Buy.



Factor receivables to generate working capital by selling debts owed to your business, at a discount to their face value. This is a form of off-balance-sheet-financing, ie it is neither debt nor equity, so it is often easier to obtain than many other types of finance. It is especially appropriate for businesses without a track record or those experiencing rapid growth. <<

>>




Factoring or invoice discounting could help a potential buyer of a business overcome the first few months of being in business when their cash flow may come under serious pressure following the purchase. Having a cash flow finance option available to potential buyers could make the difference between a potential sale that goes ahead and one that falters.


The big advantage of choosing to factor receivables is that the business does not have to meet the strict criteria of banks to get working capital. The business can grow as fast as it likes and not hit the wall due to over trading. The factoring facility can grow with the business.


Another advantage is that with such a facility in place the business owner can concentrate on finding new business and doing more business, instead of chasing around trying to find more and more finance. They don't have to worry about whether they are growing the business too quickly or over-trading. The whole idea of any cash-flow based finance system is that you can't over-trade.


So, if what you want to do is 'put your foot to the floor' and grow your business, then give serious consideration to this kind of business finance, or one of it's variants. It could be the key to unlock the rapid growth you've always dreamed of.


And consult an expert to determine how you can use factoring or one of its variants to assist in selling your business. It may not work in all situations, but it may well work in yours. This page was written mostly by, and under the direction of an Expert .

For smaller businesses that don't qualify for a full facility, Invoice Discounting could be the answer. Another variation is purchase order finance . This suits businesses that need to pay suppliers before they can get products to sell to their customers.


Return from Factor Receivables to Working Capital Financing , or you may choose to go to

Home Page