If you’re a merchant or vendor selling on Amazon, Zulily, or other third party e-commerce platforms and are tired of waiting weeks – months to be paid. Take a look at factoring; because even though you might not actually invoice platforms for payments earned, the promised payments are equivalent to (customer invoices and therefore represent an asset) that your business can leverage to expedite cash flow and grow more quickly.
What is Factoring?
Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. A business will sometimes factor its receivable assets to meet its present and immediate cash needs.
If you’re business has promised payments – they are equivalent to customer invoices and can be used as a financing asset!
App Developers, e-commerce vendors and similar third party suppliers of goods can immediately increase cash flow by factoring payments owed by selling platforms, instead of waiting weeks or months to be paid.
E-Commerce Third Party Platforms:
These huge third party platforms make it possible for manufacturers of any size to bring their goods to a worldwide marketplace, quickly and efficiently. If you’re a vendor and sell on third party e-commerce sites, don’t wait 30-60 days or longer to receive payment on goods sold. Factor finance to get up to 98% of the promised payment as soon as a sales report is issued.
Time Spent Waiting:
Time spent waiting means lost opportunities. When your cash is tied up in owed payments, it makes it tough to take on more new business and/or produce bigger orders for new and existing clients.
Opportunity Costs Incurred:
The opportunity costs incurred by both vendors and merchants is equivalent to any orders they have to turn down or delay due to lack of working capital, not to mention the extra savings they could realize by accessing immediate cash flow to take advantage of suppliers quick-pay discounts and perks.
Supply Chain Financing:
Invoice factoring is a robust supply chain financing tool that eliminates opportunity costs, by freeing up capital owned to merchants by third party platforms like Amazon, Zulily, etc. Instead of waiting 30-60 days for payment, get paid within hours of the issued sales report.
Likely Payment Percentage:
When factoring business payments owed by third e-commerce platforms like Amazon, you’ll receive an immediate cash injection up to 98% of the original promised payment “as soon as the sales report is generated” in exchange for a small factoring fee. The fee range is based on a few different variables and your company operations, however may be as little as 1% of the promised payment amount.
Cash Flow Management:
Cash flow management is crucial to the success of any small business. If you’re company needs to spend money to make money, such as vendors and merchants that sell through third party sites like Amazon, then utilize factor financing today to grow your business quickly and make more profit.
If access to flexible working capital will help your business now, instead of waiting 30-60 days or longer for third party payments to arrive, then invoice factoring is a smart option to help your business grow, cover cash flow gaps and pay daily/weekly business expenditures.
Vendors typically reinvest in inventory, supplies and their workforce quickly in order to stay relevant and sell through third party e-commerce sites like Amazon and others. However if you’re being stalled or having to wait 60 days or later to be paid, you’re company can run into cash flow gaps which prevent you from operating as efficiently as your competitors, even costing your business to suffer over time.
Speed up cash flow with supply chain financing called (invoice factoring) which gets you a large percentage up to 98 % on promised payments as soon as a sales report is generated and is ideal for merchants and vendors that sell through third party e-commerce website platforms. To find the best factor finance partner, visit www.factorbid.com to get a few competitive offers and immediate cash for your promised payments and/or sales reports.
Finding The Best Finance Company, Fast:
Factor bid is the only application that instantly matches your business with factor finance companies that specialize in your specific industry; for example Invoice Factoring for Third Party E-Commerce Vendors and Merchants. It’s important to realize that not all factoring companies are equal. A finance company that specializes in your industry is going to be more knowledgeable, provide better options and ultimately be more aggressive in offering you the best rate and terms.
Factor bid is a free resource for business owners. You’re under no obligation to factor. See what your options are and how much capital you can immediately access for your business today!
Factoring On The Go?
Download Factor App and submit your accounts receivable invoice fast! Get paid as soon as today!