Small Biz Tip: Managing Your Finances: Factoring

Tips from September 25, 2009 The Small Business tips today discuss managing your finances by factoring. Understand factoring. It's the selling of accounts receivable to an investor rather than wait to collect the money from customers. Acknowledge the fees associated with factoring. This is the cost of the funds, making the collections, & discount rates. Talk to your bank. They will be a reliable source to help you decide if factoring will be worth your time or a waste of money. Weigh negatives vs. positives. Biggest Negative: expensive over time. Positive: allow for growth & improve cash flow. Daily Overview: Factoring is a helps finance your business quickly & avoid messy loans. [Read Full Article]