Factoring Invoices – Accounts Receivable – Invoice Factoring Company

Invoicing, billing or invoicing accounts receivable means you sell your company’s invoices at a discount to an instant capital financing company. Factoring allows your business to use funds that would otherwise be unavailable during a normal billing cycle.

In other words, billing billing or selling a customer invoice to a “factor” helps your business get the cash flow it needs. Before that, there are a few key points to note:

* Abolition of bad debt: A non-regression factor assumes the risk of bad debt and thus removes this expense from the company’s income statement.

* Invoice Processing: In invoice invoicing, “factors” usually handle a majority of the work associated with invoice processing. This includes posting of invoices, depositing checks, preparing regular computer reports and entering payments.

* Unrestricted Capital: Invoice billing is the only source of funding to grow your sales. This means that as sales increase, extra money becomes immediately available. In this way, your business is constantly growing and is also able to meet increasing demand.

* Advantage of timely payment: In your business transaction you can save 2 – 5% of your commodity prices as you have money to pay within ten days. In addition to volume purchases, you can significantly reduce the real cost of factoring.

* Avoid Early Payment Discounts for Your Customers: Since you receive your money without delay, you do not have to offer early payment discounts. Factoring saves you every penny of discounts your customers currently take.

* Don’t give up equity: Invoice factoring ensures that you don’t have to give up any equity in the business or take on any partners with factoring.

* Don’t Invite Any Further Debt: People have a misconception that factoring is a loan. This is not true; Invoice factoring is not a loan. Therefore, your business will have no additional debt.

In invoice invoicing, the first transaction usually takes 3 to 5 days. Once the account has been created, cash can be transferred against your invoices to your bank. People mistakenly believe that there are monthly bill billing obligations. Since factoring is not a loan, there is no repayment of debt. In addition, you have control over how much you factor and when, depending on your personal cash flow needs.

If you are looking for a billing company to help your business grow, Magnolia is there for you. For more information on factoring, factoring invoice discounting, invoice billing company and available management, visit http://www.magfinancial.com.