We are currently providing ar factoring services rnationwide including the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida,
Georgia, Hawaii, Idaho State, Illinois, Indiana, Iowa, Kansas, Kentucky,
Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,
Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New
York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode
Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia,
Washington, West Virginia, Wisconsin, and Wyoming.
ArFactoring.ORG AR Factoring Companies Provides AR Factoring services to all industries:
1. Take Advantage of Early Payment Discounts - Having access to cash enables businesses to save on average 2% by taking advantage of early payment terms offered by suppliers. The points saved by reducing raw materials costs helps to offset the AR Factoring Companies fee.
2. Take Advantage of Volume Discounts - Having cash also enables businesses to buy raw materials in greater volume. This saves money and directly impacts the bottom line.
3. Reduce Late Payment Penalties and Interest Charges - Having immediate cash on hand to pay current obligations as they become due eliminates late charges from suppliers and other creditors.
4. Meet Obligations on Time - Paying vendors on time helps to establish a solid credit track record and allows for increased future credit limits from vendors as well as financial institutions.
Businesses choosing to maintain momentum, despite a lack of conventional financing options, find that AR Factoring Companies not only offers cash but also a stable foundation on which to build. They look to a future of managed growth and profitable performance that will bridge the gap to qualifying for bank financing. For more account receivable collection process information
companies that use AR Factoring
is typically used by consumer product companies. That is, companies that sell
products that ultimately end up in retail stores. Industries in which is commonly used include:
5. Offer Credit Terms to Customers - Offering credit terms to customers is a common way to increase sales by making it " easier" for customers to buy. Having financial backing to carry accounts receivable is essential if a business wants to be able to follow through on its commitments. Reputable factors encourage " managed" growth by consulting with clients regarding exposures and other risks when taking on new credit accounts. For more account receivable collection process information
The difference between AR Factoring Companies and other sources of financing is that the factor actually purchases and tracks commercial invoices. In addition to providing immediate cash on invoices, the factor performs valuable credit analysis on new and existing customers and conducts professional, routine follow up on invoices as they become due.
For the business manager who spends a good portion of the day collecting, bookkeeping and searching for capital, the entire AR Factoring Companies package offers peace of mind. The manager can actually focus on important aspects of the business that are often pushed aside, such as marketing and production
Setting up a AR Factoring Companies relationship is quick and easy in comparison to other forms of financing. Applications simply call for basic company information and a customer list. Years of profitability are not required which makes AR Factoring Companies an option for startups generating receivables. It is possible that funding can occur in as little as a couple of days after the receipt of the application and invoices.
AR Factoring is typically used by trucking companies.
ArFactoring.ORG Provides AR Factoring Company Services to all states:
Unlike other Companies, ArFactoring.ORG AR Factoring Companies makes AR Factoring easy to obtain with minimal paperwork.
Account Receivable Finance
Whether you are a machinist operating out of a garage or a staffing company placing hundreds of workers in the largest firms, you undoubtedly face cash flow dilemmas from time to time. The uncomfortable ritual of making incoming cash receipts stretch to cover short term obligations frustrates even the most seasoned business managers.
In recent years, an increasing number of businesses have discovered that AR Factoring Companies can combat the ups and downs of unpredictable cash flow cycles. More importantly, factors are providing the small business community with a viable source of working capital when conventional financing is not always an option.
Currently, $62 billion dollars in invoices are factored in the United States each year. In the last 10 years, the volume of invoices factored has increased by $10 billion dollars.
Most business bankers are a good referral source for reputable AR Factoring Companies companies. Bankers refer to factors because they realize that although the customer may not be bankable at the time of the referral, in a short time it could be a viable candidate for conventional financing. As a short term financing solution, AR Factoring Companies relationships generally run from 6 months to a couple of years.
Historically, the bulk of AR Factoring Companies was predominately in the textile, furniture and apparel industries. Today, AR Factoring Companies firms are working with all types of industries, including: manufacturers, service providers, transportation companies and high technology firms. Locally, as growing Puget Sound firms continue to prosper, suppliers and contractors are looking for additional sources of working capital to accommodate increased sales volume.
Depending on the agreement, businesses can pick and choose which invoices they wish to sell to the factor, who immediately advances eighty percent or more of the face value of the invoices. The balance of the funds, less the discount fee, is released once the invoice is collected.
The cost of doing business with a AR Factoring Companies company is the discount taken on the invoices submitted for funding. Fees range from 3 to 9 percent, depending on volume, credit - worthiness of the customers sold and overall risk. The discount taken is best compared to a merchant accepting a Visa or MasterCard transaction and receiving immediate payment, less a percentage or discount, before the actual cardholder has paid his or her monthly statement.
ArFactoring.ORG AR Factoring Companies
The fact is that most companies share a common dilemma during periods of rapid growth of incoming orders draining cash flow. AR Factoring Companies not only provides immediate cash but, efficient businesses also use it as a tool to increase profit margins:
The overall increase in AR Factoring Companies volume is mainly attributed to the credit crunch in the late 80s. As the availability of bank commercial credit tightens, more businesses look towards alternative sources of financing to achieve growth.
Factoring Companies and need more cash AR Factoring services helping companies in their first years of business, as well as companies that are having tremendous growth and need more cash. AR Factoring at ArFactoring.ORG
Each factor operates slightly different. It is important to understand which programs provide the greatest benefits and at the least cost. Several criteria should be addressed when searching for a reputable factor. Are there setup fees, maintenance fees or penalty fees ? Is there a long term contract ? Are there monthly minimums ? Does the factor provide credit and collection services at no additional charge ? What accounting reports will the factor supply ? What value - added services does it provide ?