In Down Economy, Small Businesses Turn to Invoice Factoring to Keep the Cash Flowing

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Transfac Capital, which provides accounts receivable financing, launches new website to make it easier for businesses to learn how to quickly meet their financial needs.

Transfac
Accounts receivable financing is an excellent option for businesses that assures regular cash flow, while freeing up time and money spent on billing, collections, credit management and more.

With consumer confidence low and jobless claims on the rise, business owners are finding it difficult to collect payments owed to them by customers. Transfac Capital has launched a new website to help businesses keep cash flowing even in the most difficult business circumstances, when obtaining a traditional business loan might not be possible, said John Thompson, chief financial officer for Transfac Capital, a firm specializing in accounts receivable funding.

Working with a firm like Transfac Capital may seem daunting to some business owners.

“Accounts receivable financing is an excellent option for businesses that assures regular cash flow, while freeing up time and money spent on billing, collections, credit management and more,” Thompson said. “With invoice factoring, companies are basically selling the debt owed to them for money now. Companies follow their regular process of billing customers for goods or services rendered. Copies of the invoices are then sent to Transfac, and Transfac will advance up to 90 percent of that invoice the next day. As payments are collected, Transfac forwards the difference owed.”

Although invoice factoring services include fees for administrative charges and funding, it’s a preferred alternative to using high interest credit cards or venture capital loans when quick financing is needed, he explained, adding that invoice factoring avoids the need for business loans and eliminates collections, while improving cash flow and credit.

“In this difficult business market, it’s not uncommon for a company to have to wait months to receive customer payments. This leaves them in a very vulnerable position when capital is needed to pay employees and cover regular business costs,” Thompson said.

Companies offering accounts receivable financing often specialize in certain types of transactions or industries. Transfac is experienced in a variety of industries including manufacturing, distribution, wholesale, service, communications, transportation, recreation and staffing. Transfac has been financing businesses for more than 60 years.

Regular cash flow is critical to the success of any organization. Alternatives to invoice factoring include an accounts receivable line of credit, inventory financing, purchase order financing or debtor-in-possession financing for companies going through a bankruptcy.

About Transfac Capital

Going strong for more than six decades, Transfac has helped to pioneer accounts receivable funding, business credit risk assessment and accounts receivable management since 1942. Transfac grew from a Pacific Northwest transportation cooperative that took over the daunting function of financing, billing and collecting thousands of invoices each week. Today, the firm has clients across America from a variety of industries including manufacturing, distribution, wholesale, service, communications, transportation, recreation and staffing. Transfac Capital recently updated its website. The site now includes up-to-date information about the company’s products and services. For more information, please visit http://www.transfac.com.

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