Factoring can play a crucial role in just about any business. This instrumental service that can help business owners eliminate cash flow problems for good is commonly not used. Por qué? Terminado 70% of business owners have no idea what factoring is, and the 30% that do know about factoring associate it with debt. We want business owners to have the right idea of what exactly factoring is.
We have put together a glossary of the most used terms in our factoring company to help you better understand us.
Let’s first start with defining factoring, then go into the finer details.
Factorización – A business that provides funding to companies by financing their account receivables through selling unpaid invoices to an intermediary called a factoring company.
What does all of this mean? Browse through our glossary below to help you better understand how factoring can help your business grow larger than ever before.
Account Receivables – Money that is owed to your business. This is typically owed by customers that have an outstanding invoice, or charge, though your business that is typically due to be paid in a certain period of time.
Account Receivable Aging – The amount of time it takes to collect on a receivable. This may be used to determine rate of factoring accounts receivables and a debtor’s good standing.
Advance – In factoring, this term means the amount of money that the factoring company can give you up front. Por ejemplo, we give up to 96% of your invoice upfront while other factoring companies can only provide up to 70%.
Bankruptcy – A business that is unable to repay its debts. con el factoring, we help you avoid bankruptcy by giving you money for your unpaid invoices.
Cash Flow – Money coming in and out of your business. Payments from customers and charges made by business owners to keep the business running.
Credit Protection – A facility that protects a business owner from potential loss or negligence of payment from a customer. Por ejemplo, we give 100% credit protection on the funds advanced to you in the case that your invoice doesn’t pay for customer credit reasons.
Compañía de factoring – A third-party financial services company that purchases current invoices from clients to give them cash right away. When invoices are due, the debtor pays the amount owed to the factoring company. Also referred to as the “funding source.”
Factoring Funding Limit – La cantidad máxima de dinero que su empresa de factoring puede proporcionar a su cuenta.
factorización de facturas – Simplemente otra forma de referirse a la factorización. Cuando una empresa de terceros compra sus facturas pendientes, de forma que se puede obtener financiación para su negocio más rápido.
El recurso Factoring no – Una forma de factoring, donde la empresa de factoring asume el riesgo de crédito en facturas impagadas debido a problemas de crédito del cliente y la quiebra.
Esperamos que este glosario le ayudará a comprender mejor los beneficios que el factoring puede proporcionar a su negocio. Si su negocio está luchando de problemas de liquidez o simplemente creciendo demasiado rápido, factoring es una gran solución para que usted y su negocio con éxito.