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Imagine flexbility that no one else offers. Unlike the others, you choose what works best for you; you sign no long-term contracts; you pay no fees when your account is inactive. You set up your contract to meet your cash flow needs, not ours. You can choose between using our most advanced technology or using the old-fashioned systems - we maintain both for you. Unlike the others, our objective is not to force you to conform to us, but to get you the cash you need in the
quickest and most efficient manner. |
Financial Factoring
vs. Bank Loans So,
why not simply go over to the friendly banker for a loan to alleviate cash flow
problems? A loan can be difficult if not impossible to receive, especially for
a young, high-growth operation, because bankers are not expected to decrease
lending restrictions soon. The relationships between businesses and their
bankers are not as strong or as dependable as they used to be. The impact of a loan is
much different than that of the factoring process on a business. A loan places
a debt on your business balance sheet, which costs you interest. By contrast,
factoring puts money in the bank without the creation of any obligation.
Frequently, the invoice factoring discount will be less than the current loan interest
rateFactoring
is especially appealing to young and rapidly growing companies. Since the
process shortens their business cycle, these businesses can grow faster. The
ability to make more products to sell while waiting for invoices to be paid is
largely eliminated. Such businesses usually net much more profit with financial factoring
than without, even when the discount is considered. Factoring
vs. Bank Loans So,
why not simply go over to the friendly banker for a loan to alleviate cash flow
problems? A loan can be difficult if not impossible to receive, especially for
a young, high-growth operation, because bankers are not expected to decrease
lending restrictions soon. The relationships between businesses and their
bankers are not as strong or as dependable as they used to be. The
impact of a loan is much different than that of the account receivable factoring process on a
business. A loan places a debt on your business balance sheet, which costs you
interest. By contrast, factoring puts money in the bank without the creation of
any obligation. Frequently, the factoring discount will be less than the
current loan interest rate.
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