Radio Man,
Your perception of the use of a factoring company is a bit flawed. Do you consider millions of retailers across the country to be screwed-up businesses because they accept credit card payments ? Visa, MasterCard etc. are the largest 'factoring' companies in the world. Retailers taking immediate payment from our credit cards do so at a discount to the credit card companies. You may not consider them 'factoring' companies, but on one side of the transaction, they most assuredly are.
Immediate payment to keep a business cash solvent may be imperative to sustaining growth and paying employees/subcontractors /suppliers. True factoring is a multi-billion dollar industry utilized by countless successful growing small businesses.
Most businesses that employ a factoring company do so because they do not possess traditional collateral that a bank can relate to for lending. If not for factoring, the wheels of America's trucking industry would come to a screeching halt (this assuming today's gas prices don't do that first).
Anyway, don't want to get too long winded. The bottomline is, if cash in the form of your quality receivables (invoices) isn't keeping up with demand due to growth (increasing payroll, supplies, advertising, etc.), factoring should very well benefit your business and see you through a period where you achieve a whole other level.
Regards,
Jerry Ketsdever
Re: Anyone use factoring for Accounts rec.
Member #: 23344
Registered: 5/4/2003
Posted:
93
Name:
Jerry Ketsdever
Name:
Jerry Ketsdever
Company:
Olympic Credit Fund
Occupation:
Factoring
Location:
Tampa, Florida
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