Factoring: The Most Powerful Form of Small Business Finance

For those companies that operate on a B2B basis and providing goods or services to other businesses, few methods of commercial finance can compare with Factoring. In fact, Factoring is now recognized as an "essential" form of small business finance by the world's central banks such as our own Federal Reserve.

How Factoring Works

Factoring is used to address working capital shortages caused by your customers paying their invoices too slowly. As any small business owner knows, granting payment terms of 30-45 days on sales means you will attract more customers and keep the ones you have. Unfortunately, providing such an accommodation can mean cash shortages when it comes to making payroll and paying your own suppliers and vendors. Such cash flow problems can be solved, however, by simply employing factoring.

Benefits of Factoring include...

Immediate Cash: Your business will receive an immediate cash advance on its sales at the time of invoicing.
Payroll: Easily meet timely payroll for your employees.
Pay Vendors: Make timely vendor and supplier payments and possibly benefit from early payment discounts if offered.
Attract New, Larger Customers: Comfortably contract with the large customers that demand 45-60 day payment terms for your services.
Credit Analysis. Benefit from the factor's expert credit analysis and collections services when required.

Readily Available to Even the Newest Start Ups

Factoring is one of the most readily available forms of commercial finance for small, early stage companies but is also utilized by very large corporations as well. So long as your business provides goods or services B2B and your accounts receivable are not already pledged as collateral for a traditional bank loan, your business can very likely qualify for factoring.

Find Out More

One of the best ways to further explore this powerful small business finance tool and to see if its right for you and your business is to request our complimentary booklet, "When Banks Say NO!...The Small Business Guide to Factoring." Its FREE, from Mango Factors. (click here to order)

Factoring for Manufacturers, Distibutors, and Service Companies