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The Cash Flow Solution Of The Future Is Right here Today-Accounts Receivable Factoring It's obvious that invoice factoring rates will be greater than loan interest required by a bank. Though keep in mind that you just cannot actually compare invoice discounting (a short-term debt instrument) with a bank loan (a long-term note) because they are two completely alternative types of financing. The key to determining if you can have the means to factor is not to look simply at the bottom-line cost, but to also look at how your company could boost its profits through factoring. Consider unearned income and forfeited opportunities because of your scarcity of cash flow. In addition, consider the savings you might experience with invoice discounting. You can do away with late payment fees and take advantage of early payment or quantity purchasing concessions. And also, think of whether factoring will allow you to reduce your accounting team by decreasing the amount of overtime used on collections and credit checks. It is rare that companies decide not to factor considering that they could not afford to. In fact, most of the times, companies decide to factor because they just can't afford NOT to. |
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Five Excellent Reasons A Company Ought to Factor The Cash Flow Solution Of The Future Is Right here Today-Accounts Receivable Factoring |
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