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One of the biggest challenges in running a business is stretching the budget. Usually, merchants need to wait from 30 to 60 days for their customers to complete their payments. As a result, income and profit are frozen during this period, leaving the business without sufficient cash on hand. All sales that have been made are stuck as unpaid invoices or accounts receivables. When in need of financing, a business owner may try to find viable options. Accounts receivables factoring or invoice factoring is certainly a very viable option. For more startup business financing advice, visit http://www.startupbusinessloans.com/research Are you planning to start a business? Go to http://www.startupbusinessloans.com and apply for business loans for start up now! StartupBusinessLoans FACEBOOK: http://www.facebook.com/StartUpBusinessLoans StartupBusinessLoans TWITTER: https://twitter.com/SUBusinesLoans StartupBusinessLoans GOOGLE PLUS: https://plus.google.com/115497590567697102335 StartupBusinessLoans PINTEREST: http://www.pinterest.com/startupbussloan StartupBusinessLoans YOUTUBE: https://www.youtube.com/user/StartBusinessLoans
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Invoice Factoring Basics Explained
For Small Business Owners
www.startupbusinessloans.com
One of the biggest challenges in running a
business is stre………….etching the budget.
www.startupbusinessloans.com
Usually, merchants need to wait from 30 to 60 days for
their customers to
complete their payments.
www.startupbusinessloans.com
When in need of financing, a business owner may try
to find viable options.
www.startupbusinessloans.com
Accounts receivables factoring or
invoice factoring is certainly a very viable
option.
www.startupbusinessloans.com
The Basics of Invoice
Factoring
What is invoice factoring?
www.startupbusinessloans.com
Invoice Factoring makes it possible for a business to turn unpaid CreditSoup.com invoices into immediate cash at the time they need it.
The Basics of Invoice
Factoring
What is invoice factoring?
www.startupbusinessloans.com
Instead of waiting for 30 to 60 days for your customers to pay those invoices, you can already obtain the cash advance you need from your invoice factoring company.
The Basics of Invoice
Factoring
What is invoice factoring?
www.startupbusinessloans.com
In turn, the factoring company would be the one to collect payments from your customers.
The Basics of Invoice
Factoring
What is invoice factoring?
www.startupbusinessloans.com
In short, accounts receivables factoring is selling your unpaid invoices to an invoice factoring service provider so you can obtain the cash you need without waiting.
The Basics of Invoice
Factoring
What is invoice factoring?
www.startupbusinessloans.com
80% from the total amount of invoices you’ve submitted to your accounts receivables factoring company would be handed to you.
*This is also called CASH ADVANCE.
The Basics of Invoice
Factoring
What is invoice factoring?
www.startupbusinessloans.com
You can receive the other 20% or the remaining balance from the amount of your total invoices as soon as your invoice factoring company has received the full payment of the invoices from your customers.
*This is also called REBATE.
The Basics of Invoice
Factoring
What is invoice factoring?
www.startupbusinessloans.com
If your customer fails to submit his payment on the given deadline, you will lose the remaining balance from your invoices as fee for the factoring company’s services.
NOTE
The Basics of Invoice
Factoring
What is invoice factoring?
www.startupbusinessloans.com
choose the invoices you would factor with care
NOTE
The Basics of Invoice
Factoring
What is invoice factoring?
www.startupbusinessloans.com
make sure that you’ll only submit invoices from your good paying customers
NOTE
The Basics of Invoice
Factoring
Who are qualified to obtain factoring service?
www.startupbusinessloans.com
Both small and big businesses can consider accounts receivables factoring.
The Basics of Invoice
Factoring
Who are qualified to obtain factoring service?
www.startupbusinessloans.com
Most factoring companies require that a business be at least 2 years old in the industry to qualify.
The Basics of Invoice
Factoring
Who are qualified to obtain factoring service?
www.startupbusinessloans.com
Unlike traditional bank loans invoice factoring financing is a lot less complicated and quick.
NOTE
The Basics of Invoice
Factoring
Who are qualified to obtain factoring service?
www.startupbusinessloans.com
As soon as your application has been approved, most factoring companies will send the cash advance you need in as little as 2-5 business days.
NOTE
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