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What is Factoring?
Pedroza Capital Group specializes in the purchase of invoices at a
discount providing immediate cash flow for a variety of businesses.
Simply put, factoring is converting your lingering Accounts Receivable
to ready cash. Factoring is a flexible and reliable means of financing,
making funds continuously available in direct correlation to your sales
efforts. The more your business produces and sells, the more funds
become available to build your business. It is generally available to
any company providing goods or services. In use for thousands of years,
factoring is a common method of financing that remains an financial
strategy attractive to major corporations in every imaginable industry
. Even the standard issue MasterCard and Visa carried by nearly
millions worldwide is a form of factoring.
Why Factoring?
All successful businesses experience cash flow shortages at one time or another. The cash you need to run your business, every business' lifeblood, is typically unavailable because your customers insist you "loan" it to them (at no interest yet) by giving Net 30, 60 or even 90 day terms. Your cash is effectively setting in your customer's accounts payable department doing nothing for you until your customer decides he's used it long enough and decides to pay you. Factoring immediately puts your cash in your hands making it infinitely more useful than than all those invoices gathering dust on your customer's desk. Makes sense, doesn't it?