Do your small businesses need a loan? Read this article to learn about the ease of getting a business loan.
It's tough. :
Factorization, bill factorization, factoring company
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Do you sell products or services to commercial or government customers? You should be familiar with waiting for 30, 40 or even 60 days to receive payment by your client.
Most large companies can afford to wait. Unfortunately, some SME owners can afford to wait-and worse-most SME owners, they start their business first
But what if you can not afford to wait 60 days to get paid? The best solution is to consider your bill.
The factoring is a financial tool (similar to the credit line) that eliminates waiting to receive a salary by your customer. Prime factoring loans give money to your invoices, usually 24 hours after submitting them. It provides the necessary cash to pay for rent, pay for expenses, and take new opportunities.
Invoice factoring is an ideal tool for cash-intensive companies such as trucking, staffing, business services, clinics and IT. It works as follows:
1. Deliver the product or service and generate an invoice
2. Submit an invoice to your client and send a copy to the factoring company
3. Factoring company advances you to 85% of your bill
4. Remaining 15% of the amount of reserve Average budget (or fee) badge
5. Once your client pays the factor, the transaction will be settled and the allowance will be reallocated (less than the small fee)
And how much do you need to consider? In what amount of business, which customer to pay and its creditworthiness. Most factors will be charged anywhere between 1% and 2.3% that all 10 day invoices have been issued. However, the rates are different, so we usually offer better prices for customization.
The biggest difference between invoice factoring loans and bank loans is that it is easy to get prime factorization. These factors are the bill for funding, which is the company with a strong creditworthiness of the business with being the biggest concern. This should not be factored into providing new businesses. And against banks, the friaoring company does not ask for financial reports and three years worth of audited financials.
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