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Business Receivable Factoring – The best alternative to traditional banks

The concept of factoring started long time back when the wholesalers were in urgent need of money and the audience that they had was limited.

PMFBancorp
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Business Receivable Factoring – The best alternative to traditional banks

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  1. Business Receivable Factoring – The best alternative to traditional banks

  2. The concept of factoring started long time back when the wholesalers were in urgent need of money and the audience that they had was limited. However, with time this concept gained popularity in the market and Business Receivable Factoring became a prime method for the entrepreneurs and wholesalers to get an easy flow of cash. The reason that this concept suddenly became a prime method was that the traditional banks generally refused to offer loans to these wholesalers or entrepreneurs who had recently initiated their business.

  3. The wholesalers needed funds to grow their business and in order to get more clients they had to manufacture more products. In such cases, there were more or less no investors who were ready to help them out and even the banks were not in a favor of dealing with them. Let’s see what exactly Business Receivable Factoring Company does in order to help these wholesalers

  4. Suppose an electronics company in Texas factors an invoice of $10,000. The advance rate for this invoice is 85% and the discount rate is 3% per month. The electronics company receives an instant cash of $8,500. Now, if the current client of the electronics company pays him the pending invoice in 30 days then the factoring company shall pay him back the remaining $1200 that were due. So, the total amount that the electronics company will receive is $9700. Here, $300 would be the factor fee that the Business Receivable Factoring company will keep with themselves.

  5. How quickly can you expect to get your cash? Factoring companies are quite fast in giving the money to their clients. The basic turnaround time for queries solving is 24 hours and the maximum time in which the wholesalers can expect testing is 48 hours. Will your information be confidential? The factoring companies so understand that all the information of their clients are absolutely confidential and none of the information would ever be leaked by them. There is a trust factor that works between the two of these companies

  6. PMF Bancorp is one such company which is absolutely trust worthy and guarantees to give the wholesalers instant money in maximum 48 hours. With the help of PMF Bancorp, definitely yourbusiness will rise and exceed all the expectations in terms of sales as well as marketing. There are no such long term contracts and also there is 24*7 online account access, so the deal is quite effortless.

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