MCL Capital Group
   Home
   About Us
   Cash Flow History
   Mission Statement
   Overview
   Reasons to Sell
   How We Can Help
   Government Vendors
   Receivables Funding
   Medical Receivables
   Lawsuit Funding
   Structured Settlements
   Advances on Inheritances
   Purchase Orders
   Life Insurance Sale
   En Espanol
   Glossary
   Contact Us

Effective Cash Solutions for Businesses and Individuals

UNDERSTANDING RECEIVABLES FINANCING. 

There are many misconceptions regarding account receivables financing also known as factoring, but once the concept is grabbed and understood, the advantages are clear and significant. The business owner can concentrate in running the business, with money resources in hand that at the same time save time in collection efforts and account management.

Factoring used to be accesible only to large corporations. The fact that your Company does qualify makes a powerful and positive statement about the strength of your finances and the factor's level of confidence in your business. You clients will not think you are in financial trouble or feel alienated. There are no changes in the relationship other than sending the payment to the factor instead of you at the time it comes due. (Remember that you already got paid from the factor when you created the invoice).

In the process of verifying an invoice, the factor tells your customer that you have been provided an unlimited credit line based on your account receivables and in conjunction with that credit line you are receiving accounts management which allows you to save on human resources or concentrate them on other tasks.

You are doing factoring not only for you but for your customers as well. It enables you to continue to provide the high quality of product or service they have come to expect, while at the same time, they enjoy the generous trade terms i.e. 30 days or more that factoring allows you to continue to provide for their benefit.

Factoring is also a selling point for future contracts since you can negotiate slightly higher prices in exchange for extending terms and you will still operate as COD, receiving money immediately as soon as you sell your products or provide your service and create those invoices.




In many situations, Receivable Funding is more appropriate and even cheaper than bank financing, because:

  • Is based only on the accounts receivable. A client's ability to raise cash by Receivables Funding is based on the total accounts receivable, rather than on traditional measures of financial strength and stability.

  • Provides continuing cash flow without the requirement of periodic payments or interim payoffs. New sales continuously create new power to obtain cash, and the business does not have to deal with renewal of loans or worry about maturity dates.

  • Gives a business increased access to cash as sales and receivables increase. There is no ceiling beyond which the factor must stop providing cash. The more sales a business makes, the more cash it can draw. The factor does not concentrate on the business debt/equity ratio to provide funds, as banks do.

  • Offers a dependable, continuing source of cash without the necessity of making separate loan applications.

  • Avoids the necessity of obtaining funds from venture capitalists, who receive an interest in the business and generally have a say in how the business is run.

  • Saves the business owner precious time waiting for a loan board to grant or deny his or her loan. Loan boards' decisions are influenced by many considerations, and the outcome is often unpredictable. With factoring, periodic delays and negotiations are eliminated, allowing the business owner time to do what he or she does best – run the business.


    What are the benefits of Receivables Funding?


    • Stimulates cash flow.
    • Relies on the strength of a business's customers.
    • Highly accessible.
    • Gets quick results.
    • Maximun flexibility.
    • Does not create debt.
    • Increases the Purchase Power of your business.
    • Money now to take advantage of vendor discounts.
    • Eliminates the use of assets as collateral.
    • Allows your business to increase inventory, expand service and do more business, in one word growth.
    • Saves on in-house staff costs.
    • Presents a professional image to your clients.

    FREE, No Obligation Consultation!

    Contact the Professionals Today at 954-682-2840 or at info@mclcapitalgroup.com

    • Serving Individuals and Businesses Nationwide.

    We've signed the ethics pledge. Will you? Click to learn more.
    http://www.principledprofits.com/25000influencers.html

    		 

    Home     |    About Us     |    Cash Flow History     |    Mission Statement     |    Overview     |    Reasons to Sell     |    How We Can Help     |    Government Vendors     |    Receivables Funding     |    Medical Receivables     |    Lawsuit Funding     |    Structured Settlements     |    Advances on Inheritances     |    Purchase Orders     |    Life Insurance Sale     |    En Espanol     |    Glossary     |    Contact Us

    Copyright © 2009 MCL Capital Group