Date Added: Feb 2010
There are many ways to effectively increase cash flow in your company in order to face the competitive business world. One of the most popular methods is Accounts Receivable Factoring. A company that uses Factoring sells their Accounts Receivable at a discount to a firm that will administer them and collects the money, in exchange the factoring company charges a fee and keeps a percentage of the funds collected. The reasons why some companies use factoring are varied, being increased cash flow the main one. Through Accounts Receivable Factoring a company takes advantage of the expertise of the Factor Company to increase work capital and reduce the hassle and cost of the collection process.