Invoice Factoring Company: An extremely useful resource for funding
Business at times can be frustration, especially when you are waiting for the customers to pay for the products that you delivered to them. There are a lot of companies who have the process of invoicing their clients with certain terms. But, what if your company is in an urgent need of money and cannot wait for a period of 30, 60 or 90 days?
From here, the role of an invoice factoring company starts. These companies help the other business companies say any wholesalers or electronics business companies to obtain immediate cash.
Let’s have a look on the work procedure of an invoice factoring company
PMF Bancorp buys the account receivables of the business companies at a discounted price. In return, they issue these business companies a lump sum amount. So, basically instead of waiting for a time period of 30–45 days for these invoices to get paid, the business companies sell their accounts receivable at a comparatively lower price so that their business is not impacted.
How can PMF Bancorp invoice factoring company benefit a business company?
1. Additional Business
• Increases Marketing
• Easily one can say yes to their customers if they have a demand of the credit terms
• More investment in equipment and people
• Eradication of supplier constraints
2. Reduction in Expenses
• With the invoice factor company’s credit guarantee one can eradicate credit guarantee
• Reduction in administrative expenses
• Cash Discount receivable from the suppliers
3. Improvement in the financial condition
• Stay credit with your creditors and suppliers
• Bring your payroll taxes to current
• Abide by the payroll obligations
• Establish payment terms with all the suppliers
Next is, with the help PMF Bancorp Company up to how much percentage cash upfront can be expected?
There is an advance rate which is basically the percentage of the face value of the invoice. PMF Bancorp provides an advance rate of 70–90% of the invoice face value.
A wholesaler in Los Angeles has a customer who currently owes him $1,000, so in such a case, the wholesaler can expect a minimum advance payment of approximately $700 to $900 in to his account.
How should you decide to go for which factoring company?
Always go for a factoring company that not only provides you with the quick funds but also provides you transparency, flexibility and terms that suits your business. The company should be able to provide you with the help in within 24 hours. PMF Bancorp has a turnaround time of 24 hours.