Anita Campbell, editor of Small Business Trends, has a good post that highlights a qualified source of information on online factoring services. In her post, she provides some background:
Facteon is a factoring
service for small businesses. What that means is that if a small
business is owed a decent-sized invoice (typically US$25,000 and up),
but needs money for, say, payroll and can’t afford to wait 60 days
until the invoice is paid (because we all know employees won’t wait
that long for their checks), the owner can "sell" or
factor the invoice to a company like Facteon. Facteon will advance the
invoice amount, less its fee of course.
To be truthful, although I’ve investigated offline account receiveable (A/R) factoring services in the past, I’ve never used a factoring service. An online service seems pretty intriguing (because it seems as if it can save managers some time).
Hey, Steve, thanks for picking up on this post.
It looks like the process Facteon uses is a lot easier than anything I am familiar with in my past banking days.
BTW, I want to figure out how you do the Delicious bookmark reference too — what a great idea!
Have a wonderful holiday weekend,
Anita