|
FACTORING
Factoring is selling invoices to
receive your money today, instead of waiting 30, 60, or 90 days
to be paid. Factoring is an important finance management tool
for a small company that does not create debt, nor does it
require you to give up any ownership in your company. Unlike a
loan collateral is not required in the factoring process, there
is no interest, and no debt shows up on your balance sheet. Fees
are paid in the form of a percentage discount, deducted after
all of the invoices have been paid to the Factor. The amount of
discount depends on the length of time it takes to collect on
the invoices (common ranges of 2.5% to 7%).
MORE TOPICS IN: Your
Business
|
