Business Finance Expert Series: "What Every Business Owner Needs to Know About Factoring"

L & 39; factoring is a promising way to stimulate the cash flow of a company & 39;. Its growing popularity can be gauged from these statistics that factor in financing & 39; s raise about 70 billion United States dollars every year. In the UK, it represents a total volume of 104.4 billion pounds in 2002. However, before jumping on factoring & 39; (http://www.hjventures.com/factoring/factoring.html) bandwagon it is important for the owner of the company & 39; know what a company adapted to & 39; factoring?
-Before taking any decision on the owner should have a list of its clients, and they should be in sufficient numbers - No customer should contribute more than one third of its turnover in & 39; business - Customers are required to accept Standard payment terms of & 39; industry. -- Period of credit extended to customers should be reasonable
Following factors make it unsuitable for undertaking factoring & 39;:
-When there are too many small bills (http://www.hjventures.com/factoring/invoice-finance. html) - L & 39; factoring Impropres when it is sold to the public. It is only available for sales to business customers - There is a provision for customers to make payments - When there are many disputes and complaints - The business & 39; n is not reliable, credible and robust , in its operation is very important for the owners of & 39; companies have a good understanding of these factors because they are important & 39; sharing of financial information on their company and will be in direct contact with customers also . At the beginning of the & 39; n & 39; factoring is not widely used because of the ignorance of & 39; owners & 39; companies on the benefits of factoring & 39; can bring to the & 39; company. Thus, it is important that each business owner & 39; awareness of the benefits of factoring & 39; before the & 39; use in their business.
Learn more on & 39; factoring / business finance The http://www.hjventures.com/factoring/factoring-glossary.html
About Author: Howard Schwartz is a partner in business strategy & 39; several groups, including HJ Ventures International, Inc. Howard has worked with & 39; hundreds of companies worldwide with a focus on writing business plans & 39; for companies that & 39; s interest in raising capital for venture capital funds and Angel Investors . Howard & 39; s business plans have received several million dollars in funding. For more information: http://www.hjventures.com/factoring/factoring-glossary.html



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