Midwest Factoring Group || Toledo, Ohio

Why Factor

Top 10 Reasons Why Factoring Is Good Business

1. Immediate Cash Flow

Midwest Factoring Company will immediately advance you as much as 75% of the value of your receivables so you have working capital to secure more business.

2. No New Debt

Factoring is simply gaining faster access to your receivables. It, therefore, has no impact on your balance sheet or debt ratio.

3. No Loss of Equity or Control

Traditional funding sources expect to profit from your future success by assuming equity in your business and/or taking an active role in decision-making. Factoring improves cash flows, but leaves you in control.

4. No Collateral or Personal Guarantees

Because factoring is based on the strength of your customers and the business you have already earned, collateral and personal guarantees are not needed.

5. Better Discounts From Suppliers

Your are in a strong position to negotiate the best price and delivery from suppliers when payment is made immediately.

6. Improved Credit Rating

When you pay your suppliers and creditors promptly, your rating becomes A-1 and your reputation soars.

7. Reduce Risk of Bad Debt

Should a bad debt occur, we will assist you in trying to collect it.

8. No Business Plans

Banks often have restrictive lending requirements where they consider cash flow, profitability, equity and years in business. The decision by Midwest Factoring Company to purchase invoices is based on the quality of your customer base and their past payment performance, rather than the length of time and profitability of your business.

9. Less Administrative Burden

When Midwest Factoring Company purchases your receivables, we assume responsibility for invoicing, collecting, and reporting—you spend less time managing your cash flow and more time increasing it.

10. Seldom Use Tax Returns

In some situations, it is necessary to provide tax returns, financial statements and profit and loss statements (P/L).

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