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Factoring Receivables

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Looking to free up cash that is tied up in unpaid invoices? If so, then you have come to the right place. Factor receivables or factoring receivables is nothing but obtaining a free cash flow. This is the best and most effective way to resolve short term financial crunches.

Whenever you sell goods and products to anyone on credit, you issue an invoice. When an emergency strikes, however, you may need urgent cash. In this situation, you can sell those open invoices to an invoice factoring company for cash. This whole process is known as factor receivables. Factor receivables are the best way to overcome any financial problem.

Factor receivables generally happen when you sell goods or services to commercial or government accounts. In this transaction, you offer 30 to 60 days to your clients to pay their balance. This can be a financial challenge, but there is a solution. It�s not your local bank- it is factor receivables. There are several benefits to factor receivables:

  • Your invoices are paid within 24 hours. This means no more waiting for payments.
  • Factor receivables are easy to obtain.
  • It takes just a couple of days to set up an account.

Factor receivables depend primarily on the reliability of your customers- if the reliability is there, it is easy to obtain factor invoices. Furthermore, factor receivables easily integrate into your company, as follows:

  • You deliver goods or services and invoices to your clients.
  • Simply send the invoice to the factor receivables company, who pays you the advance for your invoice as a first installment
  • You can use the funds received to pay business expenses, while the factor receivables company waits to get paid by your client
  • Once the factoring company gets paid, it rebates the remaining 15% as a second installment, minus a small service fee.

Factor receivables are one of the best alternatives for startup companies or established companies that have exhausted their bank resources. It is a flexible option and its biggest benefit is that contrary to what many believe, it is not a loan. This is not true; you are simply using your open invoices as an asset.

For more information on factor receivables, factoring receivables, factor receivable and factoring invoices please visit www.magfinancial.com.

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