Ozarks Capital Funding

One of the biggest problems many companies have is matching and projecting incoming cash flows with expenses that need to be paid in a timely manner (such as payroll and rent). If you’re in a situation in which you have little cash reserves and are depending on customers to pay you on a certain date and they don’t, this could cause a real dilemma.

Invoice factoring is a way to stabilize cash flows and takes the stress out of managing cash. With such an arrangement, customer invoices are submitted to the factoring company and within 24 hours, you receive an advance of anywhere from 75% to 85% of your receivables in cash. Upon collection of the invoice, the remaining amount (called the reserve) is remitted to you less the factoring fee.

Accounts receivable factoring can be especially beneficial for those companies that have an inconsistent revenues stream. For example, lets say you’ve just finished a big job for a company that pays in 45 days and you’ve got to start working on another project for another client. You need working capital to pay for the labor and overhead the job requires, but if you had to wait for the other client to pay the bill, you’d be in trouble. Factoring provides the cash flow you need to run your business without interruption.

Get a free factoring quote or call us at (417) 849-7394.

Check out our new e-book, “Accelerate Your Cash Flow With Invoice Factoring”.  Click here.