Why Computer Hardware Providers Need FactoringComputer hardware providers today face a lot of pressure from competition, and very often youíll need money to expand or boost the working capital. While this is a tough industry, a factoring company or factor can provide assistance in different ways. Unlike a banking loan, factoring companies are more flexible.
Factoring works for different businesses and companies, and computer hardware is no exception. They can pay your payables, provide funds for expansion or infuse fresh capital. These companies also make it easy to establish an accounts receivable financing. Though factoring may work in different ways, the goal is the same and that is help pay the bills.
One of the problems plaguing the computer industry is the waiting time for third party payments. If you donít receive the money in time your accounts will be left hanging. There are financial institutions available, but they donít offer the flexibility that factoring does. If you have never done business with a factoring company before, the following will explain the benefits you will receive.
A Financing Alternative
First of all factoring will ensure all your workers get paid and paid on time. Second, youíll have the means to fund your business expansion and keep operations ongoing. Third, factoring provides the money youíll need to purchase new equipment. In every industry, keeping your hardware up to date is essential, but nowhere more so than in the technology sector.
A factoring company works so well with computer related businesses because they have the means to keep your operations running smoothly. Whatís even better is the fact that factoring is very flexible and provides different kinds of financial assistance. For computer hardware providers, accounts receivable financing is a straightforward way to gain access to funds.
More importantly, your credit worthiness isnít scrutinized the way that a bank does. In factoring, your credit expands with the business cycle. What this means is as your computer hardware business grows youíll have no need for collateral.
As your business fluctuates or grows, undercapitalization or fund shortage may be experienced. This could lead to difficulty paying fixed expenses, payroll, suppliers etc. This situation happens because your funds are linked to your accounts receivables, and most computer hardware service providers donít have the assets that lenders require. Thatís where factoring comes in, because with it you receive 70% to 90% of the receivables. After your client makes the final payment you get the full amount and pay the factoring their fee.
Thatís all there is to factoring. It is a straightforward process and provides the funding you need. All you need to do is distribute the services or goods to your clients and send the invoices. Next, provide a copy of the invoice to the factoring company, and they will do the rest.
If youíre searching for an affordable and dependable computer hardware industry factoring, NeeBo Capital will fit the bill. This factoring company offers rates at 0.59%. Furthermore, there are no monthly minimums or financials needed so proposals are very quick.
Why Choose Us?
Rates at 0.59% - 1.5% for 30 days
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|Purchase Order Financing||Accounts Receivable Financing||Asset Based Lending Options|
General Articles about Accounts Receivable Financing and Factoring:
» 08/01/2012 Debt Financing or Off Balance Sheet Financing?
» 09/15/2011 What to know when selecting a Factoring Company