75% of all new businesses fail. The #1 reason businesses fail is the lack of funding. TransAm Financial Services can assist you with your cash flow needs. Contact us at (877) 898-9797 for more information.Read More »
The Basics of Factoring
Companies of all sizes factor their invoices, from start-ups to large, publically traded companies. Simply put, factoring is the sale of a company's accounts receivable to a 3rd party (the "Factor") in order to generate instant cash to continue to operate their business. Typically, this cash is then used to cover costs of payroll, maintenance, equipment, taxes, fuel and other types of overhead. The Factor then bills your customer for the work you completed. Your customer is instructed to pay the Factor instead of you. Once your customer pays the Factor, the invoice is closed.
There are many different types of factoring programs, and choosing the correct one for your business is an important decision. Check out this easy to use program comparison.
Perhaps the biggest distinction between factoring programs are whether the program is "recourse" or "non-recourse." Is it worth paying more money to a factor to assume some risk of non-payment? A simple program comparison can be found by clicking the link below to determine what is best for your company.Read More »