How To Collect 98% Of Business Debts In 28 Days One option to - TopicsExpress

How To Collect 98% Of Business Debts In 28 Days One option to improve your cash flow is to sell your debts to a finance company. This is called factoring. The factoring company will buy your 100 dollars debt for between 75 and 98 dollars. The range varies with the likelihood that the factoring company will be able to get the debt paid. If you factor all of your debts after 21 or 28 days the factoring company will give you a better price than if you only sell them debts that have been outstanding for 6 months or more. Factoring means that you collect less than the full amount of each invoice, but at least you get 98 cents on each dollar on time. Your profit margin may appear to be lower, but when you take loan charges necessary to cover your outstanding invoices into account, there may be little or no difference.

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