Factoring Helps SMEs Pay Taxes

It is no surprise that many U.S. small businesses are in trouble this year, unable to come up with the funds to pay their 2010 taxes. In fact this year, cash flow issues are causing many companies to look for a flexible and tailored solution that will enable their business will grow.

No matter what situation you’re in, whether you’re new to invoice actoring or not, factoring is more than likely your best suited option.

Banks are still not parting with money for small businesses, and the fact is that with tax deadlines looming around the corner – April 18th in fact – you really do not have much time. So if you need cash fast, because your accountant or tax professional has donw your taxes and you know that you do not have the funds saved to pay up, then take a long hard look at your outstanding invoices, or accounts receivables.

Accounts receivables factoring takes very little time. And what’s more, today, companies like the Interface Financial Group offers something called “single invoice factoring” where you can just factor one or two invoices at a time.

Once the factoring company has done their due deligence to make sure the work was satisfactorially completed, your invoice will be paid by the factor in as little as 24 to 48 hours. It is as simple as that. And the company that you did the work for will owe the factoring company the money in 30 to 60 days.

You will pay a fee, or percentage, but in the longrun, factoring is the fastest way to raise capital. And the last thing you want is to owe the Government. They will most likely charge penalties and interest greater than the fees involved in factoring.

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