on accounts receivable invoices
A brief conversation on the dinner table with an old friend led me to learn about invoice factoring. Being an entrepreneur can be a daunting task for some and my friend was struggling maintaining a regular cash flow due to some delayed payments from clients and business partners. As some of the credit terms are up to 60 days or more, she sought help by submitting accounts receivable invoices to manage her business cash flow and business expansion. From her, I further understood that companies can receive up to 95% of the accounts receivable invoices once they are evaluated as the advanced cash flow received is dependent on the industry, products and situation. Perhaps factoring can help businesses who need urgent cash flow such as paying suppliers and staff payroll. These invoices are purchased at a discount by a factoring company and usually apply to companies that sell products with terms less than 60 days only.
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