Factoring

“Advantages Of

Factoring”

Ben10 Members: × Ben Jose× Christeena James× Deepa Rose Jacob× Indu Sukumaran× Jenita× Stephanie× Binu

• Factoring is when a third-party firm, or

factor, “buys” a business’ accounts

receivable and gives the business a cash

advance based on those unpaid bills. The third

party then takes over collecting the owed

receivables. The process allows the business

access to cash faster, rather than waiting 30 or

60 days to collect payment from customers. 

• It’s a form of financing used by companies to

maintain cash flow.

• It’s more common in certain industries where

immediate cash is necessary to operate the

business, like staffing, textile and printing firms.

Advantages

Of

Factoring...

Time Savings - Factoring can save your time and

efforts that would otherwise be spent on

collecting from customers. That energy can be

redirected to other business-building endeavors,

like sales, marketing and client development.

Good Use for Growth - You can use the instant

cash to generate growth, maybe hiring another

salesperson who will bring in more business. Or

buying an advertisement that will reach new

customers. Or buying a piece of equipment that

will accelerate production.

Doesn’t Require Collateral -  Unlike traditional

bank loans, factoring doesn’t require you to risk

your home or other property as collateral.

Qualify for More Funding - Factoring firms will

typically give a cash advance on up to 80% of

your receivables, that may be more than you

would be able to get from a bank.

THANK YOU