New financial strategy significantly increases operating capital for small and mid size businesses without putting them into debt.
(PRWEB) June 29, 2004-Redford, MI. -- A large order comes into your small company. Do you have the needed cash to produce for your customer? Many small and mid sized businesses run into this problem often. Not having enough operating capital is enough to force many businesses to close their doors for good.
A relatively new financial strategy being used by some companies today is helping to keep their doors open and the orders flowing. What is this strategy? It's commonly known as factoring or accounts receivable financing.
Companies like Source Funding Group are helping businesses thrive when they might otherwise not. By selling their accounts receivables a business can get the cash they need immediately, rather than waiting months for their receivables to be paid.
Why would a business sell their accounts receivables? "The answer to that is easy. Many businesses are waiting months at a time to be paid on their invoices. Money going out for daily operations and money coming in slowly can cause quite a situation for a businesses owner. With no money to pay employees on time or produce orders for their customers, eventually there will be no employees, customers, or business. Not a good situation to be in if you run a business. That's where we come in to help" says David Rupe, CEO of Source Funding Group.
Source Funding Group has partnered with over one hundred financial institutions and private investors in order to provide a much needed service to businesses in need of cash. "If a business is willing to sell their receivables at a three to five percent discount we will gladly purchase their receivables for cash. We're very flexible with our clients. They are in total control and make all the decisions. They can sell as much or as little as they want. We never pressure anyone to sell us something they do not want to sell."
By selling receivables businesses are not burdened with large amounts of debt, another plus of factoring. Many businesses don't even realize such a service exists and end up closing their doors. "It does not have to be that way, there is no reason why a good business in a bad situation should have to suffer any more."
If a business is selling their receivables at a discount aren't they losing money? "In most cases the answer to that question is no. As long as a companies profit margins are high enough they will not miss the three percent discount. Many of our customers increase their prices by a small percentage to offset the discount, many of them increase their prices to completely cover the discount. The price increases are so small most of our clients customers never even notice or complain about the increased cost."
If you think factoring comes at a hefty price think again. Source Funding Group does not charge their clients to use their service. "We get paid by our partners, the buyers. We never ask our clients for one cent."
It's a win win situation for everyone involved. You can contact Source Funding Group through their web site, www.sourcefunding.net and one of their certified consultants will contact you. You may be lucky enough to have their CEO call you himself, as he to commonly works with their clients to provide this amazing financial service.
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