Purchase Requisitions - Online Purchasing Software Automates Company Purchasing Processes Where Everything Is Managed

These financial solutions offer convenient, cost-effective and immediate access to working capital

PA, PA (prHWY.com) December 7, 2012 - PA, Dec 07, 2012 - These financial solutions offer convenient, cost-effective and immediate access to working capital. Invoice factoring and purchase order financing are suitable for companies in just about any industry. They can provide financial support to expand, manage business surges or even meet day-to-day operating expenses. And they're ideal if your company is newer and can't obtain a loan.

Invoice factoring is easy to set up and terminate. To qualify, you should have no existing primary liens or claims on your accounts receivable. And you must have creditworthy clients who pay their invoices promptly and in full.

Purchase Requisitions - When factoring customer invoices, you can receive quick cash advances often within 24 hours. Your cash advance is based on the overall value of the invoices you provide as collateral. Typically, you can get 80 percent of the invoice value upfront and the remaining value after your client pays the invoice minus a three to five percent factoring fee.

Your customers pay the factoring company directly. And the factoring company takes responsibility including any loss for the collection of their debts. It's important to note that invoice factoring is not a loan, so there are no repayments to make. You are simply using the good credit of your clients to release your own assets to be put back in your own business.

Historically speaking, factoring is a well-established form of business financing that produces cash payments at the time of shipping, delivery and invoicing. Factoring companies, known as factors, evolved from U.S. selling agents for European textile mills. Currently, about 70 percent of the volume of traditional factors is still in textiles, apparel and related industries that highly value credit guarantees, according to the Commercial Finance Association.

Invoice factoring can provide the working capital your business needs to handle new projects, fill large orders and pay creditors on time or even early. In essence, factoring can keep your cash flow running smoothly while your business grows. This can enable you to stop worrying about finances, and concentrate on productivity and how to profitably expand your business. Factoring also can help you avoid wasting time tracking down accounts receivable or handling bad debts.

PO financing can provide quick cash flow reserves for manufacturers, importers, exporters and distributors. This type of short-term funding is used to finance the purchase or manufacture of specific goods that have been presold by the client to its credit worthy end customer. Funding involves issuing letters of credit or providing funds that allow companies to secure the inventory they need to fulfill customer orders.



About the Author:

Purchasing Solutions - ExpenseWatch.com delivers spend management products & services for businesses that automate manual, time consuming paper-based processes for company purchases, payable invoices and expense reports, while enabling visibility and control of all company spending.ExpenseWatch.com delivers expense control products & services for businesses that automate manual, time consuming paper-based processes while enabling visibility and control of all company spending.

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ExpenseWatch.com
620 W. Germantown Pike
Suite 175
Plymouth Meeting, PA 19462

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