For more information check this link here
With over 36 years of experience in the automotive industry Financial Solutions has helped hundreds of dealers unlock the cash in their Auto Notes.
We Turn Auto Notes Into Cash
Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable to a third party at a discount. A Business will sometimes Factor its Receivable Assets to meet its present and immediate cash needs, to meet payroll expenses or to replenish inventory.
Factoring’s origins lie in the financing of trade, particularly international trade. It is said that factoring originated with ancient Mesopotamian culture.
Factoring as a fact of business life was underway in England prior to 1400, and it came to America with the Pilgrims, somewhere around 1620. Like all financial transaction, factoring has evolved over centuries.
Today factoring still includes the financial task of advancing funds to smaller rapidly growing firms who sell to larger more creditworthy organizations. While almost never taking possession of the goods sold, factors offer various combinations of money and supportive services when advancing funds.
Factoring is a technique utilized by some organizations to obtain cash. Certain companies factor accounts when the available cash balance held by the firm is insufficient to meet current obligations and accommodate its other cash needs, such as new orders or contracts; in other industries, however, such as textiles or apparel, for example, financially sound companies factor their accounts simply because this is the historic method of financing. The application of factoring to get the cash needed to accommodate a firm’s quick cash demands allows the firm to keep a reduced ongoing income stability. More money is made available for investment in the firm’s growth, by reducing the size of its cash balances.
The business will find it needs large amounts of cash from either existing cash balances or from a factor to cover its obligations during this period of time if cash flow can decrease drastically. Likewise, the longer a relatively reduced cash flow may last, the greater money is necessary from yet another supply (cash amounts or possibly a component) to pay for its responsibilities during this time. As indicated, the business must balance the opportunity cost of losing a return on the cash that it could otherwise invest, against the costs associated with the use of factoring.
Auto Note Buyer
Auto Note Buyer
For more information check this link here
With over 36 years of experience in the automotive industry Financial Solutions has helped hundreds of dealers unlock the cash in their Auto Notes.
We Turn Auto Notes Into Cash
Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable to a third party at a discount. A Business will sometimes Factor its Receivable Assets to meet its present and immediate cash needs, to meet payroll expenses or to replenish inventory.
Factoring’s origins lie in the financing of trade, particularly international trade. It is said that factoring originated with ancient Mesopotamian culture.
Factoring as a fact of business life was underway in England prior to 1400, and it came to America with the Pilgrims, somewhere around 1620. Like all financial transaction, factoring has evolved over centuries.
Today factoring still includes the financial task of advancing funds to smaller rapidly growing firms who sell to larger more creditworthy organizations. While almost never taking possession of the goods sold, factors offer various combinations of money and supportive services when advancing funds.
Factoring is a technique utilized by some organizations to obtain cash. Certain companies factor accounts when the available cash balance held by the firm is insufficient to meet current obligations and accommodate its other cash needs, such as new orders or contracts; in other industries, however, such as textiles or apparel, for example, financially sound companies factor their accounts simply because this is the historic method of financing. The application of factoring to get the cash needed to accommodate a firm’s quick cash demands allows the firm to keep a reduced ongoing income stability. More money is made available for investment in the firm’s growth, by reducing the size of its cash balances.
The business will find it needs large amounts of cash from either existing cash balances or from a factor to cover its obligations during this period of time if cash flow can decrease drastically. Likewise, the longer a relatively reduced cash flow may last, the greater money is necessary from yet another supply (cash amounts or possibly a component) to pay for its responsibilities during this time. As indicated, the business must balance the opportunity cost of losing a return on the cash that it could otherwise invest, against the costs associated with the use of factoring.
Auto Note Buyer
Auto Note Buyer