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Invoice factoring in atlanta is an alternative to business loans
- By Michael Moss
- Published 12/1/2009
- Receivables
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Invoice factoring in atlanta is an alternative to business loans
Invoice factoring in Atlanta has gone mainstream.
Once thought of as untraditional, tighter lending standards have forced businesses to take a closer look at how factoring -- the process of selling a discounted invoice to a third-party -- can provide operating capital with no loans, no banks and no debt.
Increasingly, it is thought of as a viable
alternative. Small, medium and large businesses use it every day.
Still, there is lots of mystery and confusion about it. Factoring has been used for centuries and is one of the oldest forms of financing.
There are many advantages, but for businesses that need quick cash, there is one main benefit: Factoring provides immediate cash to companies that can't wait 30, 60 or 90 days for clients to pay their invoices.
Many businesses can't wait, and need the cash immediately. That's where factoring comes in. You get advance payment for the invoice. And now you have the operating funds you need to expand your business, meet payroll and cover other business expenses.
There are many reasons businesses use it:
*Get working capital
*Relieve stress from no-pay and slow-pay clients
*Fill more orders
*Increase sales with flexible funding
*Take advantage of vendor discounts
*Fund payroll and taxes
*Extend credit to customers on large orders
*Buy equipment or inventory on demand
The Differences Between A Factor And A Business Loan
It's important to point out that this is nothing like a business loan. You don't have to qualify; generally, there isn't a concern about your credit, but rather the financial health of the customer paying the invoice.
That's what makes this so ideal for small businesses. There is no debt, and the process is usually quicker at just 24 to 48 hours than a bank loan.
How Factoring Works
You produce two invoices; one invoice is sent to send the customer and the other is sent to a factor. The factor will pay you the pre-arranged advance amount on your invoice.
The customer pays your invoice and the balance of the payment is paid directly to you, minus a pre-arranged fee.
Is Factoring Right For Me?
To find out if it's for you, answer these questions:
Would more working capital offset operating expenses?
Do you need cash to grow your business?
Has your business exhausted traditional financing?
Would better cash flow strengthen your balance sheet?
If you answered yes to any of these questions, factoring may be a viable solution to fund your business with no debt, no loans and no banks.
Once thought of as untraditional, tighter lending standards have forced businesses to take a closer look at how factoring -- the process of selling a discounted invoice to a third-party -- can provide operating capital with no loans, no banks and no debt.
Increasingly, it is thought of as a viable
alternative. Small, medium and large businesses use it every day.
Still, there is lots of mystery and confusion about it. Factoring has been used for centuries and is one of the oldest forms of financing.
There are many advantages, but for businesses that need quick cash, there is one main benefit: Factoring provides immediate cash to companies that can't wait 30, 60 or 90 days for clients to pay their invoices.
Many businesses can't wait, and need the cash immediately. That's where factoring comes in. You get advance payment for the invoice. And now you have the operating funds you need to expand your business, meet payroll and cover other business expenses.
There are many reasons businesses use it:
*Get working capital
*Relieve stress from no-pay and slow-pay clients
*Fill more orders
*Increase sales with flexible funding
*Take advantage of vendor discounts
*Fund payroll and taxes
*Extend credit to customers on large orders
*Buy equipment or inventory on demand
The Differences Between A Factor And A Business Loan
It's important to point out that this is nothing like a business loan. You don't have to qualify; generally, there isn't a concern about your credit, but rather the financial health of the customer paying the invoice.
That's what makes this so ideal for small businesses. There is no debt, and the process is usually quicker at just 24 to 48 hours than a bank loan.
How Factoring Works
You produce two invoices; one invoice is sent to send the customer and the other is sent to a factor. The factor will pay you the pre-arranged advance amount on your invoice.
The customer pays your invoice and the balance of the payment is paid directly to you, minus a pre-arranged fee.
Is Factoring Right For Me?
To find out if it's for you, answer these questions:
Would more working capital offset operating expenses?
Do you need cash to grow your business?
Has your business exhausted traditional financing?
Would better cash flow strengthen your balance sheet?
If you answered yes to any of these questions, factoring may be a viable solution to fund your business with no debt, no loans and no banks.
Michael Moss
Michael Moss is president and CEO of MDS Funding LLC, which provides invoice factoring in Atlanta that helps businesses improve their cash flow. For more information about how invoice factoring can provide your business with quick cash in as little as 24-48 hours with NO debt, NO banks and NO loans, visit http://www.MDSFunding.com, email cashflowconsultants@mdsfunding.com or call 866-394-4637.
View all articles by Michael Moss