How can
the invoice from a sale of a product or the completion of a service
qualify for factoring?
A factor will
purchase your accounts receivables for cash upon delivery of a
product or completion of a service. This "cash management plus
system" is designed to release the capital frozen in your
accounts receivables to yield greater use of your resources.
Many businesses
must extend credit to conduct business with other businesses, some
holding contracts with city, state, and federal agencies,
universities, hospitals, etc. These businesses frequently experience
extreme cash flow problems, having to wait 30, 60, 90 days or more to
receive payment.
How can a
business quickly increase its sales volume?
Many companies
have substantially increased their sales volume within a
relatively short period once they decided to sell their accounts
receivables to generate instant liquidity for their business.