Wednesday, July 12, 2006

Recover from Turmoil with Factoring

In today’s LA Times, Cyndia Zwahlen writes in the Small Business Report about a small catering company that was experiencing financial chaos - “Debt was piling up. Vendors were calling for payment.”

Many start-up and small businesses find themselves with cash flow problems for a variety of reasons. Employees and suppliers require timely payment, but the cash to pay those bills by collecting on their accounts receivable may not occur for up to 30 days and longer. The challenge may become even greater when one or two clients represent a disproportionate share of a company’s revenues.

Factoring, or accounts receivable financing, could be an excellent solution to solve a cash flow problem. Factoring is quick, is based upon the creditworthiness of your customers and is rarely impacted by customer concentration issues.

Use factoring to improve your cash flow and get back to growing your business.

Related Tags:

No comments: