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.