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AR Cash Flow s views on factoring in small business finance
Aug 04,2008 00:00
by
saroja
AR Cash Flow has offered its views on small business finance. The deterioration in credit markets is putting the squeeze on small businesses and their ability to obtain traditional bank overdrafts. Once upon a time a small business could go to their bank with a sound business plan and clean credit and obtain an easy $50,000 worth of working capital. Today this avenue has all but evaporated. Where do these small businesses go for funding? One of the effective and least understood methods of small business finance is factoring. More to the point, factoring is a valuable tool for many types of businesses. Although it has been used to finance trillions of dollars worth of transactions for hundreds of years for countless numbers of businesses of all sizes and ages in a wide variety of industries, it is a misunderstood segment of the financing market. Small business owners, large business owners, lawyers, accountants, consultants and even academics do not fully understand factoring and its various uses and applications. Few books are written about the subject. The only articles seen are more advertorial than anything else. Even if a small business has to be financed and has gone down the bank path it might qualify for factoring. It pays to talk to as many financiers and try to figure out all the different options. http://www.ferret.com.au/c/AR-Cash-Flow/AR-Cash-Flows-views-on-factoring |