Factoring Invoice
Have you ever seen those notices from a collection agency offering to settle a debt for a percentage of what is actually owed? They bought that debt from the company it was originally owed to and paid a percentage of the total for the right to collect it. They might have paid seventy-five cents on the dollar for it and are now offering you a chance to settle for eighty. That type of financing is called factoring and you can do it from the other end if you have money owed to you. Similar to accounts receivable finance loans, with factoring loans the debt is actually purchased from you and collection becomes the responsibility of the purchaser.
Factoring is a retail financing option that has been around for hundreds of years. In 11th and 12th Century Italy, factors used to purchase debt from merchant sea captains in return for money to finance their next voyage. The terms and principles of the practice helped lay the groundwork for modern lending today. Factoring also aided Italian seafarers in their exploration of the Far East and the Americas later on, making Italy a commercial power in the 16th and 17th Centuries. As the New World was settled and overseas trade routes were established, factoring loans were critical for a merchant captain’s, and later on overland trader’s success.
As a retailer in this modern age, a factoring loan might be an option for you to create better cash flow. Many larger retail stores factor their debt out after ninety days, often taking less than seventy cents on the dollar just to get something for it. If you have outstanding invoices that are thirty to sixty days past due, you might get as high as ninety percent back, depending on the factors assessment of collection feasibility and likelihood. Some accounts are just uncollectible.
You may be eligible to get accounts receivable factoring. Register here at SmallBusinessFinance.net and fill out one application. We’ll shop your request around and find out if factoring is the right choice for you. There are other forms of financing available also, and by coming here you won’t have to fill out multiple applications or go to different locations to find them. If you’re a small business owner and need a loan, cash advance, or a buyer for unpaid debt, you’re in the right place.