Factoring your accounts receivables might be a good way for your company to free up some time and smooth out cash flows. But just a warning, depending on the factoring agreement, the factor may collect your receivables for you. Read the latest articles from Shaw Capital to avoid scam, fraud and other online transactions. This is a good warning to avoid fraudulent transactions online.
Small business owners never have enough time. There are bills to be made, products to be marketed, employees to be hired and sales to schedule. Those 24 hours each day seem to simply disappear.
Fortunately, business owners can save some time with accounts receivable factoring.
Shaw Capital Management and Financing provides export trade financing to clients in every major world market and can convert accounts receivable finance transactions in 17 currencies.
We have no minimum or maximum monthly volume requirements. Other factoring companies require a financial commitment for the amount of freight bills you factor each month.
Our highly skilled team provides full administrative support – including credit management, invoicing, collections, account reporting, expense reporting, fuel card management and much more!
With Shaw Capital Management and Financing, you get paid in full minus our fee the day we receive your freight bills. Other factoring companies holdback 10 to 15 percent of your money or more for each invoice in a reserve account. That reserve amount is not immediately provided to your company. In the end, you receive part of that percentage back, depending on how long it takes the factoring company to receive payment on the invoice.
Under this arrangement, owners sell their outstanding accounts receivables to an outside factoring company. The factoring company, which buys the accounts receivables at a discount from the money owed on them, and then goes about handling the messy business of actually collecting on the receivables. The business owner, meanwhile, gets a quick infusion of cash.
Now, its true that business owners get a bit less cash than they would have received if they would have collected the money due to them by their clients. But collecting on accounts receivable can sometimes be a lengthy ordeal. With accounts receivable factoring, business owners get their money quickly.
At the same time, they free up valuable time for themselves. Instead of tracking down late payments, business owners can participate in income-generating activities, the kind of work that keeps a small business humming along.
For instance, instead of trsacking down missing payments, business owners can develop a new marketing plan to better promote their new product line. They can draft an expansion plan that will keep their business competitive. They can schedule interviews to hire those extra employees that they need as their business grows. Or they can finally decide whether moving to a larger building makes economic sense.
Shaw Capital Management and Financing – Business owners today need two things to thrive: time and money. Factoring account receivables provides them with an extra dose of both. Those owners, who struggle to get everything done in an average day, should consider taking the accounts receivable factoring plunge: It might help them provide the extra boost that their business needs.