Compare your company’s cashflow potential with a
factoring or account receivable financing facility.
There are three main assumptions in analyzing the results from your cash-flow cycle:
- A one time investment of $10,000.00 into cost of sales and then a reinvestment at a rate of 65% back into cost of sales.
- Under the “With Financing” section, an 80% advance (or availability) on all collateral submitted for financing is available.
- The key conclusion to be drawn is a comparison of cash-flow cycles without the financing and with financing made available.