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Factoring
Factoring also known as Accounts Receivable Financing, is the purchase of creditworthy Accounts Receivable (your invoices) at a small discount in exchange for immediate cash.
Running a business is difficult enough - weekly & monthly payroll, insurance, rent, utilities and the unexpected. And depending upon the industry and business type, it may be necessary to offer your customers' net terms for their payments.
And then it happens... the client, the order, or the job you've been waiting for but there's not enough working capital to take it on!
What will you do?
As a factoring company, Leeds Capital Solutions will advance money on your delivered receivables, then wait for your customer to pay. This means that you will get up to 85% of the face value for the billed invoice within 48 hours instead of waiting 15, 30, 45 days or more to receive the payment.
Factoring is not a loan. It is an alternate, non-traditional, source of financing. Since it is neither a form of debt or loan, it doesn't involve borrowing or giving up any ownership in your business. It can improve your balance sheet by increasing cash and net worth, while decreasing outstanding accounts receivable.
Most businesses, established, startup, growing or just surviving can qualify. Our main focus is the creditworthiness of the debtor (your customer). So, as long as your business has quality accounts receivable, it's quite likely that you could qualify for a "factoring line of credit".
Some Common Factoring Benefits
- It provides quick results
Factoring programs are great tools for small business and can inject much needed working capital when needed most. When it's time for payroll or to hire additional workers for a new job but next month's payments have not yet arrived, what will you do?
Call us today at 561-649-5034 and we will answer your questions, guide you through the setup process and ensure a successful funding experience.
It only takes a few minutes of your time to find out if factoring is the right tool for you. So call us today for a free, no obligation consultation.
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