How do you define factoring


Whenever we define factoring we generally get this question; Who can use Factoring?
define_factoring_NeeBo_Capital
NeeBo Capital has run an accounts receivable factoring company for numerous years. We completely understand the requirements for cash flow in new and growing businesses. Let’s look at some of the typical uses of the funds from selling your invoices at a discount to factoring companies.

Below are some common uses that we find our clients looking to factor invoices:

Cash flow for; meeting payroll, buying inventory or parts, paying taxes (the cost of small business factoring is A lot less than the IRS fees for late tax payments), financing a marketing campaign, purchase new machinery, development opportunities.

In the event you sell to greater firms many of them take 30, 45, 60 or as much as 90 days to pay. Their credit worthiness is excellent – they just take time to process payments.

To the average small business acquiring these larger customers generally is a very good thing. Larger sized businesses generally make larger orders.

Larger orders that take longer to collect on means cash flow problems for you. Your small business must buy inventory and make payroll while still filling these orders. Working capital is depleted.

Published by

Chris Lanchech

Hi everyone, my name is Chris and I am a junior analyst at Neebo Capital and an inspiring blogger. We enjoy speaking with business owners and entrepreneurs who come to Neebo Capital looking for cash flow solutions. Give us a call toll free at 1-888-382-3766 or Visit us online at www.neebocapital.com

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