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Why Factor?
The numbers don’t lie. Check out the comparison below of a company’s finances before and after they factored.
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Before Factoring |
With Factoring |
| Gross Revenues |
$200,000 |
$400,000 |
| Cost of Goods Sold |
$120,000 |
$240,000 |
| Gross Profits |
$80,000 |
$160,000 |
| |
|
|
| Less: |
|
|
| Variable Expenses |
$30,000 |
$60,000 |
| Fixed Expenses |
$40,000 |
$40,000 |
| Overhead |
$70,000 |
$100,000 |
| Cost of Factoring |
$0 |
$16,000 |
| Total Expenses |
$70,000 |
$116,000 |
| |
|
|
| Net Profit |
$10,000 |
$44,000 |
| |
|
|
| Summary |
| Net Profit After Factoring: |
$44,000 |
| Net Profit Before Factoring: |
$10,000 |
| Additional Profit from Factoring: |
$34,000 |
When you factor, you get paid quicker. That means you’ll have more cash flow to secure more delivery loads. It’s a simple and easy way to grow your business.
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