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Quick Guide to the Role of a Factoring Broker

When asked what keeps them up at night, most small business owners will say cash flow. When asked what makes up their nightmares? The answer is making payroll, and balancing accounts receivable with accounts payable. Managing the inevitable ebb and flow of working capital in any business is not for the faint hearted.

A Cash Flow Strategy

Running a business often draws comparisons to riding a roller coaster. To help level out the ride, factoring becomes a logical strategy. Factoring costs money, but also saves money, time and manpower. It’s a strategy that many businesses depend on, especially when they first start trading or during times of growth.

Growth in a company can create an urgent need for cash. Times of fast growth can be dangerous times. Whenever sales ramp up, you have to keep a close eye on cashflow. Factoring means a lender purchases and then manages your open invoices. You get paid immediately, and they take a fee. The percentage they take out will vary on a number of things.

The Help of a Broker

Of all types of lending, factoring can be the most complex. Why would you rely on a factoring broker?

A good factoring broker in Alpharetta, will gather information from the business and determine your exact needs. From there, they can match you up with the right lenders, and search for the best deals. Brokers often have an inside track when it comes to current rates and appealing offers.

Comparing Quotes

One of the biggest advantages to having a broker is to help you evaluate the different offers. The various quotes will all come with unique advantages and unique disadvantages. A broker can weigh the pros and cons and help you make the best decision for your situation. They can clearly outline the benefits to the business as well as the cost.

Saving Time and Money

A knowledgeable broker who has good working relationships with a variety of lenders can streamline the process for you and save you money in the process.

And, they can save you time. Lots of time. Comparing offers can be tedious and complicated. A broker brings the ability and experience to cut to the chase and provide needed clarity.

Keep in mind that most brokers rely on commission from the lenders and won’t cost you at all.