Why should companies finance their accounts receivable and partner with factoring companies?
Besides providing additional working capital, Platinum, a leader among international factoring companies, offers many additional benefits/advantages for a company participating in accounts receivable factoring, including: • Taking advantage of volume discounts and early payment discounts • Purchasing additional inventory through the increase in working capital afford by invoice factoring • Reducing bad debt and improving credit rating • Outsourcing accounts receivable management, which includes credit checking and collections • Increasing advertising and marketing efforts • Financing seasonal needs or securing larger orders through the financial security that comes along with invoice factoring • Offering extended credit terms to its clients • Keeping fixed assets unencumbered • Retaining equity and ownership, as invoice factoring leaves the balance sheet unchanged • Meeting increased sales demands without having to worry about restrictions of conventional lines of credit.
