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In Wake of Bank Cuts Small Businesses Employ Accounts Receivable Factoring in 2010<br><br>If you are a small business operator you will know precisely the struggles of obtaining capital to finance and improve your business that businesses are facing today.  For more information in regards to http://www.instantinvoicefactoring.com/factoring-companies/truck-factoring-companies/ ([http://www.clubitaliani.com/index.php?do=/profile-76422/info/ clubitaliani.com]) stop by http://www.clubitaliani.com/index.php?do=/profile-76422/info/ With banks limiting personal lines of credit and loans more businesses are turning to accounts receivable financing. In this article I will try and help you see whether accounts receivable financing, also referred to as factoring, is right for you.<br><br>Most banks base their decisions with a company's credit worthiness, whereas factoring is based on the value of the receivables. There are no minimums, no maximums, no long-term commitments no lengthy application process. A factoring company will help get businesses back on track so they really are current with payroll.<br><br>However, everybody knows that business credit is tight and intensely hard to get. Most Canadian loan company are making conservative decisions to shield themselves. They need to see assets, solid financial statements along with a good reputation running you business. This put business loans out of your reach of many Canadian business people. However, an enterprise loan isn't the only way to solve this particular problem, nor could it be always the best solution.<br><br>The way invoice factoring works is pretty simple: the factored invoice proceeds are shipped to the business by 50 % installments. The first installment (usually 90% of the face value in the invoice) is provided for you within a day after submitting the invoice for the factoring company. The second installment, otherwise known as the reserve, is remitted to you, less the factoring fee, once your customer pays the invoice.<br><br>One of the advantages of factoring is it's easy to obtain, when compared to other products. Factoring companies secure their position by holding the invoice as collateral. They actually consider your invoice the key collateral they can hold. This an important difference business products, since it provides financing to companies whose biggest - or only - asset is really a solid customer base.