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The North American small business sector is an integral part of the economy
and, as it grows, so does its need for reliable sources of financing. From
small, growth-oriented businesses to more established mid-sized companies,
every business owner eventually faces the reality that additional working
capital is required. Many times, this working capital is necessary because
so much money is tied up in accounts receivable. So the quest for financing
begins.
Obtaining funding from banks and other traditional sources can be a long and
arduous process, often leading to frustration and disappointment.
Consequently, many business owners have discovered another option,
Factoring, a highly effective alternative to traditional lending. By selling
credit worthy invoices to a factoring specialist, for immediate cash, a business can
acquire additional working capital. In addition, the factor can also provide
business management support and a wide range of additional financial
services. In exchange, the factor receives a high rate of return for
funding the transaction.
Surprisingly, the concept of factoring is not new. It dates back to the
Roman Empire and may be referred to as Invoice Discounting. But today, there
is something new, the Liquid Capital Licensed Business, an opportunity to
create and build a self-directed financial services business with a focus on
factoring.
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Factoring