Many companies looking for an immediate injection of capital have used factoring, a financial service offered by certain lenders and factoring firms in which they purchase business-to-business receivables for immediate cash and a service fee. The problem is that factoring rates, while lower than ever, still vary widely from lender to lender--with commissions and incentives providing a less-than-level playing field for the average small business owner. Enter Capital Ideas. The financial consulting firm's FactorBids.com is an online factoring auction block, where companies can seek the most competitive rates nationwide on any given day. What's more, the service is easy to use. Just complete an online one-page Q&A data sheet, and within three business days, you get a listing of the lowest factoring rates available, given your business particulars. The service also provides consultation on how factoring works.
There's no obligation to accept any financing offers, and the service is free, regardless of whether any transaction takes place, according to Capital Ideas' Brian Ross. "Funding turnaround is fast," Ross explains. "The whole process of converting invoices into cash takes less than a week."
Visit www.factorbids.com or call (877) 726-7300 for more information.
Kurt Samson is a freelance business writer and public relations consultant in Annapolis, Maryland.