Discount Factoring is the wave of the future in terms of Small Business Financing. Not that is was simple before, but no longer can a small business owner go into his local bank and get a Small Business Loan without having a strong history to back up the requirements of the banks.

To make it even worse, if you have tax arrears or other problems with the IRS or CRA, the banks will not even talk with you. With all that has been happening in our economy over the last couple of years, what is the Small Business owner to do?

Companies all over the continent are facing all kinds of issues including income tax and other tax arrears situations. Just recently a business is New Mexico found itself in this exact situation. It had been having a hard time with its Accounts Receivable Collections and now the days that it took to collect their money was over 60 days on average and they needed to take a Discount Factoring Loan to be able to meet its obligations to the government.

Take a good look at your detailed financial analysis and you may be in for a surprise. Many business owners are not aware that between 40% and 70% of your company assets are tied up in your Accounts Receivable. What if they were all of a sudden gone?

Exactly, a significant reduction in the size of the company with the resulting crisis since the disappearance of this asset, liabilities do not disappear on the other side of the balance sheet.

Oddly enough, Accounts Receivables are often looked down upon, but in reality, they are a vital part of the company. This is all money waiting to be converted from credit sales accounts to cash. No further action is needed on these sales other than to collect. No more costs to produce the product, no shippingjust collection.

Many companies use Accounts Receivable Factoring to cash in their sales to free up this asset that has been locked away in their financial statements.

In today’s unpredictable global economy, you obviously never know what is going to happen next. Uncertainties and concerns regarding the Iraqi threat, North Korean crisis, and hidden terrorist cells and networks continue to loom in the back of the minds of consumers. Moreover, the stock markets and industries around the world.

Price inflation is another major concern for everyone. The latest Consumer Price Index (CPI) number released by the U.S. Department of Labor’s Bureau of Labor Statistics states that prices, in all U.S. cities, are up 0.1% in the month of December for the calendar year of 2002. The Consumer Price Index (CPI) is a program that produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Furthermore, the national unemployment rate continues to remain steady at 6.0% for the month of December 2002. Believe it or not, this may not be as bad as it sounds.