Do you give a discount to customers who pay cash? That's about what the accounts receivable (factoring) fee amounts to, though usually less.

Profit Comparison:
    
                        Without Factoring     With Factoring

Annual Sales:           $1,000,000    $2,000,000
20% Gross Profit:         200,000         400,000
Overhead:                        60,000           80,000
Cost of Factoring:                 N/A           60,000 (3%)
                                                                                                                                    
 
NET PROFIT:                $140,000       $260,000

Additional income: $120,000


What's more, you can recover the fee quickly if your vendors offer a cash discount.
Our normal fee for factoring is 1 - 5%. You will have the cash to obtain their 5%
discount now and maybe be already ahead financially.


BUT, ALSO, CONSIDER THIS: 

If your company usually nets a 20 % profit, but is unable to take on new business
because of lack of cash, then, based on a 3% fee,  it is actually losing 17% profit
on that potential new business.


It just doesn't make good business sense to be holding yourself back!
Call us now to get your business moving forward, again!


As always, if we can't help you, there is never a charge.