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Return To Factoring Article Archive   Factoring: Accounts Receivable, Cash Flow and Factoring Invoice By Scott Stevens Factoring is the exchange of a companys commercial invoices or accounts receivable into immediate cash. This is done by selling those accounts at a discount. With invoice factoring, you can easily get 70 to 80% of an invoices face value wired to your account within 24 to 48 hours of the invoice being issued and approved. Its an easy way to get ready cash. There is a misconception that invoice factoring is a kind of loan. This is absolutely wrong, as with factoring you pay neither interest nor principal. Invoice factoring is not a loan. The main benefit of invoice factoring is that no liability will appear on a companys balance sheet due to factoring; furthermore, it financially revitalizes the business. In invoice factoring, a company sells one of its assets or accounts receivable for an agreed-upon fee to obtain a more liquid asset, cash. In short, it is a kind of self-financing, having its own growth with debt-free funding; it is like selling your vehicle to someone- the two of you agree on a price and the transaction is finalized. As factoring invoices is not a loan, funding is not based on a companys ability to repay the amount advanced, but on the ability of the companys customers to pay what is owed the company for the purchase of its goods or services. Nowadays people prefer account receivable factoring over other traditional funding sources which usually require all the assets available to a company for collateral on a credit line. Factoring is a Receivables-based credit line that needs no other collateral. The main highlight of {a href= http://www.magfinancial.com/factoring.cfm}invoice factoring is that you can have cash on demand to meet seasonal demands or accommodate new and larger clients who may demand longer terms or use up any excess working capital you have on hand. In short, factoring invoices gives you the option of offering terms to your customers, thus helping you increase your customer base. If you are looking for a company that can help you with invoice factoring or that can provide you with more information on {a href= http://www.magfinancial.com/factoring.cfm}receivables factoring, account receivable factoring and factoring invoices please visit {a href= http://www.magfinancial.com/}www.magfinancial.com. About the Author: Mr. Scott Stevens is well known author who writes about financial services such as cash flow programs, account recievables, factor recievable etc. Find more information about magnolia financial service at www.magfinancial.com Business Capital Line

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