Shaw Capital Factoring VS Bank Loan
Shaw Capital Management and Financing provide same-day-funding. We can help you meet your cash flow needs immediately without entering into a long term factoring relationship. The money you get for the freight bills we purchase is payment in full. Shaw Capital helps you to avoid costly mistakes, online scam, fraud and other identity theft transactions before you knew it.
More organizations and companies are selling invoices to a third party as a means of raising funds.
The financial process known as factoring is where a business sells its accounts receivable - its invoices - to a third party for immediate payment but receives less in return than the value of those invoices.
This system is usually used by a company when its available cash balance is not sufficient to meet its existing commitments or other cash needs such as fresh orders or contracts. It allows the business to maintain a smaller ongoing cash balance, though by selling the invoices for a lower amount than they are actually for.
The invoice is sold to a third party called a factor, and this is where the approach is different from a bank loan when it comes to a business looking to raise funds.
Shaw Capital Management and Financing - Factors make money available even in circumstances where a bank may be less willing to do so.
This is primarily because they are more concerned with the creditworthiness of the debtor - the business or organisation that is required to pay the invoices for the goods or the services delivered by the invoice seller.
In contrast, banks tend to focus more on the creditworthiness of the borrower when looking to lend.
Factoring is seen as a calculated risk by many firms and one they enter into for a specific reason.
The down side is that they are offloading their invoices for less than their face value, but the return is that they are getting the money owed to them much more quickly than they would have done if they had simply pursued the buyer of their goods direct.
A number of companies operate specifically in the factoring and invoice discounting business and actively contact companies and organizations that they believe will benefit from such services.
These firms look to promote a number of benefits of the services they offer to the invoice seller. They suggest that the process is a way to get access to money quickly and safely and that it also avoids the difficulties and inconveniences that can be involved in collecting bad debt.
It is also promoted to potential customer firms as helping to facilitate and smooth out cash flow and as a way of borrowing money that is secured by their debt.
Once the factoring business takes on the invoice and the debt, it has the responsibility of collecting payment. It makes its profit by paying the invoice seller less cash than the face value of the invoice.
It is worth "shopping around" when looking to engage the services of a such a firm, since the market is competitive, with estimates suggesting that in the UK alone it is worth in the region of £200 billion a year, and fees vary.
There are a variety of reasons for this, with a significant fact being the risk associated with the invoices that are purchased.
Before taking on the invoice, the factor will conduct various levels of research. This will include looking into the track record of the debtor firm to assess whether it is creditworthy or has a history of bad payment. Once taken on, the factor will then seek payment from the debtor.
Factoring is used across a wide spectrum of business organisations and more recently the practice - which has a history stretching back to the 14th century in England - has been adopted by government bodies.
Today in the UK, factoring is used in some form by around 50,000 companies as a means of releasing finance.
Shaw Capital Management and Financing provides export trade financing to clients in every major world market and can convert accounts receivable finance transactions in 17 currencies. We have no minimum or maximum monthly volume requirements.
P.O. Box 17078
Baltimore, MD 21297
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Shaw Capital Factoring VS Bank Loan here
News-ID: 158700 • Views: 637
More Releases from Shaw Capital Management and Financings
Shaw Capital Management for Small Business Financing with Factoring
Financing a small business has always been challenging. Read this article to find out if factoring financing is the right solution for your small business. Learn from experts; refrain from internet offer scams and fraud. Shaw Capital Management and Financing provide same-day-funding. We can help you meet your cashflow needs immediately without entering into a long term factoring relationship. The money you get for the freight bills we purchase is payment
Shaw Capital Management and Financing Benefits from Factoring Financing
How Distribution Companies can benefit from Factoring Financing Product distribution companies can be very capital intensive businesses. Read this article to learn how to get working capital for your distribution company and avoid scam. Shaw Capital Management and Financing provide same-day-funding. We can help you meet your cash flow needs immediately without entering into a long term factoring relationship. The money you get for the freight bills we purchase is payment in
Shaw Capital Management and Financing Carve Out Time with Accounts Receivable Fa …
Factoring your accounts receivables might be a good way for your company to free up some time and smooth out cash flows. But just a warning, depending on the factoring agreement, the factor may collect your receivables for you. Read the latest articles from Shaw Capital to avoid scam, fraud and other online transactions. This is a good warning to avoid fraudulent transactions online. Small business owners never have enough time.
Shaw Capital Management and Financing - Freight Bill Factoring to Fund Your Need
Using Freight Bill Factoring to Fund Your Transportation Company by Marco Terry. Most transportation company owners have to constantly juggle responsibilities. They have to handle vehicle repairs, driver payments, insurance payments, office expenses and more importantly - collecting invoices. Collections can be source of problems for many transportation companies (or freight brokerages) since most clients pay their invoices in 30 to 60 days . Few can afford to wait that long. Shaw
More Releases for Factoring
New IT solution uncovers fraud in factoring
The DOC.pilot IT tool detects indications of possible forged invoices / Factoring fraudsters cause millions of Euros of losses / More security in factoring Neuss, 13 March 2017. fidis GmbH in Neuss has expanded its DOC.pilot PDF analysis tool with functions for preventing fraud. DOC.pilot detects indications of possible forged invoices and sounds the alarm when it finds any. In this way, factoring companies and banks are given an indication of
7 Benefits of Factoring Your Receivables
Every year, tens of thousands of company owners across many industries discover the benefits that come with a proven cash flow solution: factoring receivables. Many businesses struggle with keeping up with expenses during those weeks or even months before customers pay their bills, yet the owners don’t want to take out loans or don’t meet borrowing requirements. Factoring is an age-old way of turning those outstanding invoices waiting in the accounts
Optimise factoring by mouse click
Special web portal optimises interaction between factor and clients / all documents available at all times / new release with extensive filter and export function Anyone who uses factoring as a financing instrument or provides it as a factor knows what a flood of information is circulating about purchase and payment transactions every day. What seriously complicates the situation is that factoring institutions usually send out their information by normal
New Key Player in Factoring Software
German firm cormeta ag has established a subsidiary: cor-fs gmbh. The company provides specialist software to the factoring industry. The managing directors of the Ettlingen-based firm are Holger Behrens and Christian Kattwinkel. Ettlingen, May 23rd, 2011 - cormeta ag and industry expert Christian Kattwinkel have jointly established cor-fs gmbh. The company develops specialist software for the factoring industry, i.e. finance companies that purchase trade receivables. The first solution from cor-fs is
Get best advantage with Factoring Companies
Factoring Companies, the saving grace for many small businesses. The last couple of years of economic decline has caused the closure of lots of small businesses. Many small businesses across the country are struggling to keep afloat and are looking for ways to cut business costs. One solution is to find a factoring company. There is documentation on the use of factoring companies in America some time before the revolution.
Finding An Online Accounts Receivable Factoring Company
Small businesses throughout the United States are moving away from traditional small business loans and opting for accounts receivable factoring services. These services, also referred to commonly as “invoice factoring services” or simply “factoring services,” were once considered a short-term financing option for troubled businesses. That is no longer the case. Today’s accounts receivable factoring companies provide ongoing invoice factoring services to companies in nearly every industry as a long-term