As it becomes increasingly difficult, even for reputable companies, to obtain credit by traditional means, more companies are turning to contractor advance as a way to solve short-term cash-flow problems.
Contractor Advance is a process by which businesses sell their accounts receivable at a portion of their value — typically from 50% to 70% — in order to receive, in a matter of days, money that would typically take up to 60 days or more to collect from vendors.
The company then takes on the responsibility of collecting the money from the vendors. After it is collected, the remaining difference is returned to the business, minus a fee
TOO RISKY?
Because it allows companies to obtain cash in just a few days (factoring companies are only concerned with your vendors’ ability to pay them, not yours), this can be a possible solution for companies that are short on cash or are unable to obtain credit.
“STILL A VIABLE OPTION
Contractor Advance is still a viable option for companies truly in need. Once a relationship with the company is established, it takes just a couple of days to receive your money.
301 340-9404- ask for a Funding Specialist
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