Accounts receivable financing or debt factoring is a common business financing practice. Businesses can sell their accounts receivable to a third party, called a factor, at a discount. However, factoring could be an excellent solution for companies to try to cash in on their account receivables, control cash flow, and keep the business afloat. Factoring […]
Debt Factoring vs Account Receivable Financing: What To Choose?
Uninterrupted cash flow is the lifeline for all businesses; however, it is not uncommon for companies to have considerable gaps between a sale and receiving payment, which can disrupt their liquidity. As a result, ensuring smooth cash flow can be quite challenging for businesses, especially the ones that allow long credit periods to their customers. […]
Debt Factoring: Is It The Best External Source of Finance in the Short-Term?
It is hardly an overstatement to say that the mechanism of credit sales or deferred payments grease the wheels of trade and commerce. Small and medium businesses, in particular, get a chance to stay ahead of the competition by providing such credit purchase facilities to their customers. This often allows them to cultivate long-term relationships […]
What Is Debt Factoring and Is It Right for Your Businesses?
Every small business owner begins by planning for success. However, in business, as in life, unforeseen events can throw a wrench into even the best-laid plans. Unexpected expenses and slow-paying customers can cause cash flow to fall to dangerously low levels. While larger companies may be able to turn to more traditional solutions, such as […]