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What is Factoring? What are the benefits of factoring?

Why should a company consider factoring?

Ask yourself the following questions:

-- Can your company's profits be improved with additional cash flow to sustain your growth potential?

-- Can your company's profit be improved through the identification of bad credit risks, maintaining timely collections, and minimizing losses on uncollected accounts?

-- Can your company's profit be improved if less time is spent on credit and collection efforts and more time is concentrated on operations, marketing, and sales?

Today, many strong and growing companies are benefiting from the use of factoring as a cash flow and management tool.  Growing companies use factoring to leverage their sales volume and generate sufficient cash to meet increasing working capital needs.  In general, factoring can be an excellent tool for companies interested in:

Growth -- Selling receivables can increase cash flow, thereby meeting working capital and/or expansion needs.   Factoring may also provide additional amounts of available funding.  Receivable financing normally places a lending limit on the borrower.  Factoring is only limited by sales volume.

Reduced Overhead and Operating Expenses -- because the maintenance of accounts, billing, collections and cash applications are taken over by the factoring firm.

Bad Debt Reduction -- The professional factoring firm may be better able to collect accounts than the individual company.

Other Benefits of Factoring include:

  • Cash for marketing
  • Cash for payroll deadlines
  • Cash to increase sales
  • Cash for increased production
  • Cash for expansion
  • Cash for new equipment
  • Cash for taxes
  • Increased purchasing power
  • Improved bank balances
  • Improved credit rating
  • Cash without debt
  • Money for cash discount

Complete our Online Application Form today or contact us for more information!

 

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For more information contact:

The Falk Company
25 Dustin Drive, Claymont, DE  19703
Telephone:  302-798-3489  Fax:  302-798-0229
E-mail:  mayerfalk@comcast.net

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