May 25, 2012
How does invoice factoring work? Learn how asset based lending techniques, such as factoring loans, give you the funds you need to expand your business with ease.
Imagine the peace of mind you’ll gain by eliminating your cash flow worries. MP Star Financial gives you access to the funds you need via invoice factoring (also known as asset based lending, factoring loans or receivables factoring).
There are many reasons to investigate receivables factoring. Here’s just one factoring finance example, illustrating how you can benefit. If your new business is growing rapidly, traditional banks offering $50,000 lines of credit don’t help when what you really need is $250,000. Asset based lending methods, like invoice factoring, fit into your business model by giving you the money you need to keep your business moving forward.
At MP Star Financial, we’ll show you how factoring can benefit your company with:
- Immediate Cash: Get quick cash from receivables factoring of your eligible accounts at any time.
- Funding for New Companies: MP Star understands how small businesses can struggle financially. Factoring loans can be the ideal solution allowing you to leverage your customer’s credit to build your own business.
- Unlimited growth: When you choose invoice factoring, you’ll have access to the necessary cash flow to fund new business. Unlike traditional lines of credit, which place a value on your company based on today’s sales (and can stunt your business growth), factoring loans are designed to help with your continued business development.
- Credit Extension: It can be tough when customers continually find ways to extend payment beyond 30, 60 & 90 days. While you’re confident the invoices will be paid, your customers may be outsourcing their accounts payable departments to India, or mailing your checks to the other coast in order to mail them back to you to play the float. Invoice factoring enables you to extend your receivable terms to land the big accounts.
- Collections Assistance: Time is money- and chasing down unpaid invoices can be very time-consuming. With receivables factoring you’ll get regular reports about your accounts receivable, as well as problem solving assistance.
- Early Payment Discounts: Your customers are regularly taking advantage of the “two ten, net 30” terms that you offer. Why shouldn’t you? Receivables factoring gives you the cash you need to take those discounts and enhance the bottom line.
- Build Your Credit: With factoring loans and asset based lending your company will have the cash flow to pay its bills in a timely fashion-ultimately building its credit score, which allows you to leverage your suppliers for better terms.
Grow your business with the help of asset based lending methods, like factoring loans.
Many of today’s industry titans began with the help of asset based lending and factoring loans. Now you can too! Call it invoice factoring, factoring loans or receivables factoring, asset based lending is available to help you grow your business with ease. Learn more about how our factoring company can help you with cash flow management via accounts receivable financing.
Request a quote for a custom receivables factoring program for your growing business, or complete our online application today. Questions? Call 800-833-3765 Ext. 150 today or email us.