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| Accounts Receivable Financing: The Way to Increasing Profits |
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| Accounts Receivable Financing: The Way to Increasing Profits explores how to increase a business’ profits by using accounts receivable financing. |
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Many businesses that fail are profitable when they go under.
Costs of sales, carrying inventory and rapid growth can absorb your business'
cash flow. And waiting 60 to 90 days to get your invoices paid can slow your
sales and business growth. All business' have to pay rent, suppliers and meet
payroll on a regular basis. If most of your cash is tied up in slow paying
invoices you may miss important opportunities to grow your sales. Can you, as a
business owner, deliver large orders to new clients and provide credit to your
customer's for 60-90 days?
If you cannot afford to wait to get paid by your clients there is a solution
that can provide you with the necessary cash. It's called accounts receivable
financing. With accounts receivable financing you can accelerate the payment
for your invoices, get funding for exponential growth, and meet your recurring
obligations.
If adequate bank financing is not available, accounts receivable financing may
be the solution to find your way to increasing profits. The main requirement is
that you have invoices from creditworthy commercial customers. Many factoring
companies are comfortable working with your new company – even if you have no
hard collateral – provided that you have good invoices, a strong gross margin
and a solid business plan.
Another advantage of accounts receivable financing is that it is like a line of
credit that increases as your business grows. There are commercial finance companies that
provide accounts receivable financing for small, medium and large businesses. And
your financing costs can be reduced as your business grows. As a tool, accounts
receivable financing allows you to tap into the power of your greatest assets –
the credit of your credit-worthy customers and their obligation to pay for
goods and services you have sold to them. It allows you to take advantage of
new opportunities and grow exponentially. Copyright 2007 Gregg Financial Services
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Mr. Elberg is a licensed attorney and licensed real estate
broker. Gregg Financial Services is a full service brokerage for commercial
finance companies and banks that fund B2B businesses. Mr. Elberg arranges
funding from $25,000 to $50 million per month at competitive pricing, and works
to reduce your financing costs as your company grows. For more information
about GFS, please visit our website: www.greggfinancialservices.com
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