Reviewing Financial Statements

We are often asked to comment on how a consultant can use a company's financial statements (Balance Sheets, Income Statements and invoice aging reports) to highlight the benefits of factoring their accounts receivables. Below, you will find those areas of the reports that you can concentrate on and how you can best use this information to improve your chances of closing the deal! Understanding the Balance Sheet from a Selling Perspective: Factoring simply turns one asset (Accounts Receivable) into another asset (Cash) - said another way. Factoring is "Off Balance Sheet" financing as you don't incur any liabilities when financing this way (nothing to balance). By reducing your potential liabilities, you will increase your … [Read more...]