Interview 2

Learn why accounts receivable factoring is the low risk alternative when financing your business.

How can accounts receivable factoring help your company? The President of MP Star Financial explains. In this section Gage Price continues his November 1, 2005 interview on the “Capitalist Cleveland” radio program. Here, he discusses how factoring loans are a logical alternative to riskier methods of financing your business.

Factoring loans can help your company turn receivables into cash.

Host: “We’ve had plenty of industry titans on the show. When we ask, ‘how did you fund your company?’ a lot of them say, ‘credit cards.’ It just blows my mind.”

Gage explains that accounts receivable factoring and factoring loans are a better alternative. “There are a lot of companies that are started with credit cards. The banks don’t want to jump in because you don’t have a track record. You don’t have assets. Accounts receivable factoring is another way. You’re turning your receivables into cash. The beautiful thing about this is, as your receivables grow, so does your access to cash.”

A factoring company can bring more cash to your business than a bank, via factoring loans.

Host: “You lend your receivables at a 75- or 80-percent rate, where a bank may only accept receivables at a 15- or 20-percent rate.”

Gage explains, “Absolutely. Banks look at receivables as kind of an afterthought. A factoring company looks at them as something that can be verified and collected upon. With factoring loans, we typically do give anywhere from 75 to 90 percent on receivables. Receivable factoring is really based on the quality of the receivables and the type of business.”

Be sure not to miss the rest of this interview on accounts receivable factoring.

Read part 1 of Gage’s receivable factoring interview with “Capitalist Cleveland.”

Learn more about the history of receivable factoring in part 3 of this accounts receivable factoring interview.

Contact MP Star Financial today and take advantage of low-risk factoring loans that increase your company’s access to cash.

Expand your business by securing low-risk funds through factoring loans and other services offered by the MP Star factoring company. Fill out an online application for factoring loans now.

Get your Free E-Book: How Invoice Factoring Can Help You Grow Your Business!

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