Provide Factoring

At present the creation and development of financial transactions such as factoring has greatly facilitated the procurement procedures as capital of a company, which is of vital importance to the success of it. Factoring or factoring is a contract which gives the ability to more easily obtain capital or accounts receivable portfolio, as that contract made with an entity of factoring (factoring) is responsible for providing the service provider's opportunity to retake the capital that has been given credit, it can be interpreted as capital goods or service. Factoring can be taken as a financial move by which an entity specializing in the collection of receivables, provides companies and lenders of funds, the rapid timing of the payment of the same, thereby increasing the fluidity in hand and optimal capital continue with the business. The companies or entities engaged in factoring are responsible directly and call it that, the purchase of accounts receivable any company with the firm intention that by charging the same from earning a significant percentage (commission) for providing this service. Today the use of factoring is an important tool used by a myriad of companies, because this has advantages of great benefit to continue the success of a company, some of these are: Optimize cash flow. Increasing the liquidity of the company.

Decrease in accounts receivable and financial burden. Increase in credit. Streamline administrative tasks. Provide greater availability of funds in a short time. Contribute to improve the return on assets.

Provide an important source of income and recurrent resourcing. Although there are many more advantages possessed by the factoring, the already mentioned are those which can be seen on a larger scale. However, it is important to note that although there are a greater number of advantages, there are certain factors (no handicaps) is highly recommended keep in mind, some of them such as: It is important to bear in mind that the cost can bring the use of factoring, can be greater than when using other methods, this due to the percentage of commission that sought by these bodies providing this service generally are somewhat higher. An important factor before using factoring, is that these entities do not take accounts receivable in excess of 180 days of cancellation, making this activity something exclusive short-term accounts. Organizations that specialize in factoring usually decide to customers (companies) are willing to accept in this process and in turn decide which documents to accept the same. In short, factoring is an important tool that can be very useful to increase the financial liquidity of a company, thanks to the great benefits that this activity provides, however it is very important to note that this procedure can in turn be somewhat expensive.