Top Reasons for utilizing Invoice Factoring

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Top Reasons for utilizing Invoice Factoring
Source https//www.prestigecapital.com
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• The basic idea of invoice factoring includes the
  sale of invoices at a discount in exchange for
  immediate cash.
• Invoice factoring has been proven to be the best
  way of getting finance for a business.
• Factoring has become a mainstream, near about 1
  trillion dollars of factoring transactions takes
  place in a year.

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Reasons For Choosing Invoice factoring

• Cash Accessibility
• Personal Credit Does Not Matter
• No Need Of A Personal Guarantee
• No Need For Collateral
• Non Recourse

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Cash Accessibility

• After availing invoice factoring service, the
  money is transferred to your account in 5 to 7
  days. Unlike in a business loan which takes weeks
  to get approved.

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Personal Credit Does Not Matter

• Personal credit is not a matter of concern.
  Since the factoring companies get paid from the
  client's customers and are only concerned with
  the quality and the credit worthiness of the
  customers.

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No Need Of A Personal Guarantee

• There is no need of a personal gaurantee since
  invoice factoring is an advance not a loan. There
  is no obligation for the business owner to
  personally guarantee the loan.

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No Need For Collateral

• There is no need to put up your house or any
  physical assets for accessing the full capital.
  The invoices are the collateral. The collateral
  is needed in a bank loan, not in invoice
  factoring.

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Non Recourse

• The factoring company cannot ask you for the
  payment if your client's customers do not fulfill
  their obligations. The risk of nonpayment is
  completely on the invoice factoring company.

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• These were some valid reason for utilizing
  invoice factoring services than a bank loan.
  There are various factoring companies in the
  market, which will provide you the invoice
  factoring services. But one should go for a
  reliable and trustworthy commercial finance such
  as Prestige Capital Corporation.
• The Prestige Capital Corporation provides you
  with other financial solutions such as bridge
  financing, dip financing, credit protection,
  factoring receivable services, refinancing,
  early-stage financing.

Source https//www.prestigecapital.com