Factoring for Information & Tech Companies: The Formula for SuccessInformation & tech companies face big challenges. Given the nature of the industry, a steady cash flow is necessary for the purchase of equipment or payment of bills. If youíre a startup company and want to expand operations without incurring debt, factoring is the answer.
Why IT Companies Need Factoring
Small IT companies are always in need of steady cash flow to pay for expenses and fuel growth. While large, established firms have access to funds, small companies donít. If your needs go beyond the account receivable payments youíve received, your business wonít be able to compete.
Factoring companies offer your IT tech business a chance to flourish and receive much needed cash flows. They also provide a dependable and cost effective solution to your financial needs without the burden of a loan payment. While there are many types of factoring companies, they work the same way in that your accounts receivable are turned into capital.
Providing Cash Flow Solutions
One of the major problems faced by computer companies is the difficulty in getting some clients to pay on time. When this happens, your company is left without sufficient funds necessary to meet the demands of other customers. The inability to cater to these demands leads to customer dissatisfaction and more problems. Given this situation it isnít unusual for information & tech companies to turn to factoring to give them a hand.
With factoring youíre assured of funds for the payroll, plus you have the money necessary to expand your business. This is extremely important in the IT industry as growth opportunities can come and go very quickly. If you donít have the funds now, chances of expansion may slip away permanently and your competition will leave you in the dust.
With factoring, this wonít happen, and you get access to cash flows so you can expand into other markets. However, the benefits donít end there because these companies also have IT experts to guide you through the process and offer advice when needed. Second, applying is very easy now as the process is available online and you simply need to fill up a form to get a quote.
Probably the biggest thing that separates factoring from other lending companies is your credit history wonít be an issue. No matter what your credit standing is, youíll get the cash advance provided there are no problems with the invoice.
Also, loans from financial institutions are usually very limited and for a specific amount only. Thatís not the case with factoring as you will receive up to 95% of the accounts receivable after it is purchased. With the money youíll be able to pay for the expenses while waiting for the remainder of the balance to be paid to you.
Among the many factoring companies today, NeeBo Capital is one of the most renowned and with good reason. They offer information & tech companies rates of 1.5% and furthermore, they have a dedicated staff and crew ready to respond to your queries and questions.
Benefit of rates as low as 1.5% in the Information & Tech industry today. Our crew is waiting by to answer any questions you may have, there is no obligation!!
Why Choose Us?
Rates at 0.59% - 1.5% for 30 days
Quick Link to Financial Resources:
|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