In an economy as we are experiencing now, many companies need to be paid on work that they have completed, a lot faster than the commercial "status quo" of 30, 60 or 90 days. On a 90 day pay period a small company doing 50k in sales a month, could be out over 150k dollars and will have had to have paid all the employees, operating expenses, and any suppliers, while waiting for their money to arrive. This type of situation is very stressfull and hard on small and medium sized business owners, and they may not even know a solution exists. Many small and medium sized business owners believe that if you can not float your own finances in your company for three months than that is the problem. This assumption is wrong in the sense that many early companies, as well as medical supply companies and service companies all face this industry wide problem. However, they do not realize that many companies use Factoring or Accounts Receivable Financing to help them and may very well be the life blood of the operation and growth. When you factor your accounts receivables, you can operate your business and worry more about your business and stop worrying about: Collecting on accounts (the factoring companies do that for you) You can avoid the debt that is incurred during the pay period where you are usually "floating" your own finances You can stop turning down accounts because you lack working capital Many very large companies factor their receivables as well, however this type of financing is very specific and specialized, so when you are going to start inquiring about pursuing this type of funding/financing, it is imperative that you speak with companies/individuals that are specialists and know that sector of the finance industry. Rates and sector specific companies or brokers can lead you in the right direction, while there are some "fly by night" companies, that will either unknowingly or knowingly, leave you or your company out to dry. As stated above, when you speak with or inquire about factoring make sure the company you are working with is a specialist in this type of financing. Don't deal with a normal finance company that will just refer to to a specialist. The company you deal with should be well-rounded in Accounts Receivables, A/R Financing, aging and many other factors that this type of funding and lending entails. Also, If the company you deal with can help with collecting on aged receivables that can not be financed, that is even better. You may be able to collect money on accounts that have already been marked in the books as default while at the same time financing the lesser aged accounts to increase cash-flow and capital. Rates for this type of financing usually range from 1.5 percent to around 3-4 percent rates. Baker Douglas LLC has been helping people with all types of financial need including: Factoring, Accounts Receivable, Medical Accounts, Business Capital, Commercial Real Estate Projects, Government Projects, and Foreign Investment and Energy Commodity Finance
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In an economy like we currently have, or any economy for that matter, many companies can not afford to wait 30, 60 or 90 days to get paid on work that they have already performed. There are companies that help with just that problem. You can be funded on your invoices, immediately.
Barker Douglas LLC are specialists in Accounts Receivables and Factoring. They can also help with collecting on aged accounts as well, as open term accounts and accounts receivables.
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