Factoring Cash Cycles

In todays credit climate the economic benefits of factoring invoices is a result of improving your cash flow cycle. Factoring companies help your business increase the number of times cash moves through the balance sheet. The entire process of making a sale, purchasing product, and getting paid creates a cycle of cash flow. If your company is operational, each sale you transact creates profit. On average, a business can cycle its cash through seven or eight times annually. But by utilizing the benefits of accounts receivable financing that average can be increased. Getting paid faster on invoices means you have cash on hand to buy more, to sell more. More importantly, it allows you to go after bigger clients and contracts, thereby increasing the bottom line by earning profit more times a year. Additionally, there is no credit limit to the amount of factoring you can do, the availability grows with you all they way. Factoring invoices is one of many ways to make your cash flow cycle work more optimally to grow your business.