| By :
Kristin Gabriel
Economists believe 2011 will be one of the most competitive years in a long, long time for businesses. In fact, many companies, large and small, are still struggling from the economy. The year 2010 gave business owners a taste of what lies ahead in the new ways people are doing business online, using Web 2.0 tools like social media, Facebook and Twitter, and with technology -- cell phones and mobile marketing. Current trends indicate that in order to remain competitive, sustain and grow. companies will need financial strategies and tactics like accounts receivable factoring. In the New Year of 2011 there will be a dramatic shift in technology and integration like nothing we have ever seen before with companies using apps for smart phone communications to sell products and services. And, if you are not already preparing for these fast-moving new communications methods by using these technologies, your competition will win, and you will lose. business owners were just getting familiar with social media and Web 2.0 tools like Facebook and Twitter, and Kindle, and now they realize other new services like YouTube, Skype. ANd there are touch screen computers and mobile smart phones for the next trend. New Web 2.0 tech tools will help companies generate new customers, new business and profits. But the bad news is that all of this takes money to implement, and the good news is that smart business owners in 2011 will also be using new ways to cover these expenses. You can sell credit-worthy invoices to a factoring company for additional working capital. It can be a painful process to attempt to obtain a loan from banks and other traditional financial institutions. That is why some business owners have discovered that factoring is a highly effective alternative. In fact, factoring is an increasingly attractive option for businesses to raise working capital quickly. Benefits include: Obtain cash in 24 hours for first time applicants Enrolled customers can get cash in as little as four hours Contact management system with instant messenger There's no minimum, No maximum, and no obligations No obligations, not a loan, No long-term commitments and no lengthy application process What's more there is a new factoring strategy known as single invoice factoring, or invoice discounting services, a unique, more simple and possibly superior method of factoring compared to factoring funding provided by traditional old line factors, or and assets based lending approaches. A business does not get paid right away for delivered products and/or services, which can negatively impact its cash flow, making it hard for producing orders. Factoring benefits businesses that do not get paid for 30/60 or 90 days because it advances up to 90 percent of the invoice total, at the time of order fulfillment. A factoring company will look at the creditworthiness of the client's customers. businesses can sell credit-worthy invoices one at a time. Then they can also get additional funding for immediate working capital. Single invoice factoring is the purchase of a company's accounts receivables, or financial assets by a factoring company. Factoring is different from a traditional bank loan as loans involve two parties, whereas factoring involves three. And typically a bank will base its decision on whether a business is credit worthy, whereas factoring is based solely on its receivables and their value. The New Year will most certainly have challenges for businesses - so why not be prepared with the financial strategy that will bring the fastest results - factoring.
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