Facteon

Atlanta, GA - Cash flow issues are commonly faced by businesses. These problems can impact the productivity and efficiency of an organization. Cash issues can interfere with the routine functioning of an organization. Thankfully, invoice factoring tools are available for accelerating cash flow. These tools can be used to avoid issues related with slow-paying customers. Simply put, invoice factoring makes cash available for business growth and expansion. It is an effective way of turning invoices into quick cash. There are companies that purchase accounts receivable at a discounted price and give away instant cash. Sounds too good to be true? It is indeed true. They buy invoice for cash. For instance, if a company has worked for another company and the other company is slow in making payments, the former can have its invoice bought and receive cash for the same. This is nothing but accounts receivable factoring. It is not to be mistaken for a loan. It does not involve debt repayment. A company’s own accounts receivable are turned into cash. More and more businesses are selling their account receivable to third parties at a discount, in exchange for instant money. Factoring as a tool is highly effective and beneficial. It is the perfect solution to cash flow problems faced by businesses. It enables a company to access funds that would not be available during a regular billing cycle. Companies are only required to establish their factoring accounts. The process is quick, simple and straightforward. It can be completed in 24 hours. It does not even involve any hidden costs. The rate table can be browsed online. Immediate increase in working capital is one of the biggest benefits of factoring. This in turn can contribute to continuous expansion and growth. Factoring is fast catching up. It is the sale of receivables. It is a type of financial transaction that differs from a bank loan. This is because the focus is on the firm’s credit worthiness as opposed to the value of receivables. Moreover, it is the purchase of a financial asset. What’s more, unlike a bank loan, factoring involves three parties. More and more firms are using factoring to their advantage. They use is to obtain cash when the available cash balance is not enough to meet its current obligations. It is used by firms to accommodate their cash needs. Visit http://www.facteon.com to know more about it. Tom Nort is author of this article on invoice factoring. Find more information about accounts receivable factoring and factoring