Startup Funding Espresso-- Factoring Part 1
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. When you sell a physical product and invoice the customer, it can take 30, 45, 60 days or more before they pay.\xa0\xa0 Factoring provides funding by reducing your accounts receivable by selling the invoice.\xa0 The factoring company gives you cash immediately when you sell and takes a transaction fee on the use of their funds. The factoring company is now at risk for non-payment. Factoring works well for consumer product companies that have cash-flow challenges as the business requires capital to build the product, sell, and ship the product only to collect payment later.\xa0 Factoring reduces the amount of working capital needed and may reduce the amount of funding you need from equity capital raises.\xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today.-----For more episodes from Investor Connect, please visit the site at: Check out our other podcasts here: For Investors check out: For Startups check out: For eGuides check out: For upcoming Events, check out For Feedback please contact info@tencapital.group