Tips from September 25, 2009
The Small Business tips today discuss managing your finances by factoring.
- Understand factoring.
It's the selling of accounts receivable to an investor rather than wait
to collect the money from customers.
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Acknowledge the fees associated with factoring. This is the cost of the funds, making the collections, & discount rates.
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Talk to your bank. They will be a reliable source to help you decide if
factoring will be worth your time or a waste of money.
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Weigh negatives vs. positives. Biggest Negative: expensive over time. Positive: allow for growth & improve cash flow.
Daily Overview: Factoring is a helps finance your business quickly & avoid messy loans.
We post these small business tips to our employee's Twitter account each day, Monday through Friday. This is a reposting of those tips.
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Tuesday, September 29, 2009 at 10:35 AM
Ryan Jaskiewicz says:
Nice article. As the President of a factoring company, it is very important that clients try and be as well informed as possible. As with any industry, there are good and bad companies. Being educated about your options helps you decipher through the companies. It is important to recognize that factoring is expensive over long term, but not meant to be a long term (3+years) option. The lowest rate, does not always equate with the best deal, keep that in mind. Hope this helps.
Ryan Jaskiewicz
President
K & L Finance Company, LLC
