Why Factoring for Your Wholesale Business Makes a Lot of SenseA growing number of wholesale businesses are relying on factoring to help them manage their overhead. With factoring, financial problems will no longer be a major issue as youíll be able to get access to funds easily. You can also count on factoring to help if you need to accept new orders but are short on cash.
Factoring is Fast and Reliable
Besides getting the funds needed to pay for inventory purchase, your business can also use the money to maintain normal operations. While other means are available, factoring is preferable because approval is fast. If your company needs money now thereís no better or quicker option. If you need to make a purchase a financial loan can take days or weeks, something that you donít have.
Factoring Speeds the Collection Procedure
Collecting invoices can take days or weeks. In some cases you need to wait months to be fully paid. During this period you might become strapped for cash or face a sudden need to purchase new inventory and your inability to do so can be disastrous for business.
Expansion without Debt
The other advantage of factoring for wholesale businesses is you get access to funds without getting into debt. Most companies that want to expand have to borrow funds, but the money they earn ends up as debt payment. With factoring you can get out of this cycle and expand your business without incurring huge debts with high interest rates.
Furthermore, factoring companies are much more lenient than banks. They donít ask for the same stringent requirements that banks and other financial institutions require. Moreover, if your business is facing difficult times, getting a bank loan may be next to impossible. In this case, a factoring company is the best alternative.
Other Ways Factoring Can Benefit Your Company
One of the problems that an upstart company usually faces is understaffing. If the company is expanding and there are several invoices that need to be paid, a factoring company can help. Companies who have availed of factoring services will tell you that itís the smart way to do business. Rather than wait for the money to come in, youíll have immediate access to cash to pay for daily expenses. For a wholesale business money is time, and the sooner the bills get paid, the better.
Factoring is available for any kind of business, but it is particularly effective for small companies looking for financing. Because of the way factoring works, theyíll take care of collections. Moreover, the rates offered by these companies are very reasonable. Instead of just hoping to get a bank loan, you now have an alternative.
There are many factoring companies, but one of the best right now is NeeBo Capital situated in Boca Raton, Florida. The company offers first class factoring services as well as related services for wholesale companies. In addition NeeBo has 0.59% - 1.5% rates with flexible terms.
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