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Benefits of
Factoring
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Factoring or cashflow financing gives a business
the resources to grow and compete, with predictable cashflow, in
today’s business environment .
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Cash,
normally tied up in accounts receivable, is released back into the
business within 24-48 hours, therefore growth can be facilitated
in a number of ways.
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Company
principals are freed to concentrate on production and marketing of
the products and services.
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Overheads
in account administration and collection are reduced.
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Creditworthiness
is enhanced.
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The
business can take advantage of discounts offered for early payment
to their creditors.
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Funds
are available to take advantage of seasonal bulk buying
opportunities, and to purchase or upgrade equipment.
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Confidence
in future planning is enhanced as cash flow is more predictable.
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Cash
is available in reserve to fund large orders, increase production,
and sales.
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Generate increased profits due to greater market penetration.
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A
higher level of credit management is possible, as the business is
provided with up to date information on the performance of its
debtors. With the professional approach to receivables management
, the levels of bad debt can be reduced.
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There
are no monthly repayments to be made.
