Rikvin Collaborates Singapore Factoring Company Fees

Published: 12th July 2011
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Although factoring has been around for over 4000 years and has played a role in supporting the American colonies before the revolution, it is one of the least known and most misunderstood financial tools available to small businesses.





It used to be factoring agreements was an all or nothing basis. In other words, either you have acknowledged your bills or not. Recently, the single invoice factoring (factoring place) has become popular because you get to take into account many or as few invoices as you want. Read the rest of this article for a more complete understanding of how the single invoice factoring works.





Invoice factoring is designed to solve the problems of cash flows that are generated when customers pay their bills within 30 to 60 days. While extending 30 days payment terms are common to business customers, many SMEs cannot afford to wait that long to get paid. They have a range of expenses that require immediate action, such as payments to suppliers, salaries and rent. Factoring invoices can reduce DSO bills important to put your business on sound financial footing.





Mechanical invoice factoring is easy. Once the work or the product of a delivery invoice, the invoice is sold to an intermediary company called factoring company. The factoring company examines the credit business the company paying the bill (the customer), and if acceptable, the invoice you at a small discount. This provides a quick source of funding that can be used to cover operating costs and business growth.





Most factoring operations are structured in two installments. The first section, called in advance, is about 80% of the amount of the invoice. The second section, which is the subject of 20% (less expense) is given once the bills actually paid in full.





The main advantage of factoring is that it is easy to obtain. Most small businesses can get if they are fixed and customers rather than burden their property. This bill makes factoring the ideal solution for companies who cannot afford to wait 30-60 days to pay their customers.





Author Box:


Rikvin is a leading corporate services firm that assists entrepreneurs and investors with the processes required to form a Singapore company, along with a range of other corporate services. Rikvin caters to the needs of foreign investments in terms of Singapore company registration, processing of work visas, and post-incorporation considerations including obtaining business license and permit and compliance matters.





"Our phones are answered during business hours by specialists and not by an answering machine. We appreciate the value of your time and understand that a person cannot be replaced by technology. This is especially true when it comes to making important business decisions." If you are interested in learning more about Rikvinís Services kindly email us at info@rikvin.com or give us a call at +65 64838887

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