Factoring is Great for Large Holiday Orders

holiday factoring
If your business needs extra working capital to get you through the holiday season, factoring is definitely something to consider.

Need working capital to fill Large Holiday Orders? Click Here

Recourse factoring or discount factoring is a way for a business to get immediate and flexible cash flow to help your company restructure, grow, and take advantage of discounts from suppliers for larger purchases or for early payments, or even to use to fund your payroll. There are many businesses that need more cash flow during different seasons because of changes in demands. This is why factoring is great for use when making large holiday orders.


Discount factoring is a business financing method that is widely accepted and is used by many large companies that are very well-known. Discount factoring is cheaper than traditional factoring and is also less restrictive than equity financing. It allows a company access to money without giving up any shares of the company as well as giving you daily and weekly access to availability when requested. In addition, discount factoring can increase and decrease based on the current needs of your business. In addition, you will gain administrative support to help manage receivables without needing more staff.

Discount Factoring: How it Works


There are several companies that provide discount factoring for businesses that have different capital needs. The company that provides the factoring will work out an agreement with your company. The agreement will include terms that will be used for each of the invoices.


Once the agreement has been put in place the invoice will be sent to your customers. Depending on your needs and the factoring company that is chosen, they may send out invoices for you. Your company will receive at least 90% of the invoice immediately. The factoring company will keep a percentage of the fees in order to cover their own expenses.


The factoring company will work with you and your consumer directly to make sure that timely payments are made. This will help streamline your accounts payable department, increase communication with customers, and provide faster feedback on any problems that may occur such as lost and damaged items. This is extremely beneficial during the holiday season.


When it comes to recourse or discount factoring it is important to consider whether or not it is the right solution for your particular business. During the holiday season discount factoring can become quite useful as it will provide your company with the money that it needs in order to fulfil holiday orders.

Factoring Advantages


Another advantage of using discount factoring is that it will provide your company with access to experienced and professional business development officers. These individuals will be able to help you determine what the benefits of factoring are and how factoring can help meet your current cash flow and business needs. Financing specialists will work with you directly to help create a capital solution that will work best for your particular business.


Factoring is not for everyone and as a business you will need to determine which form of discount factoring will be best considering your particular situation. If you simply need extra money to get you through the holiday season, factoring is definitely something to consider.

Need working capital to fill Large Holiday Orders? Click Here