Tuesday, July 03, 2007

The Hard Truth

Frequently, companies moan that the cost of factoring is too high. Fine. In some situations, it is and would not be the best option. SAW has told companies to forget factoring and try something else.

A personal rule of thumb:

  • A business with gross profit margins of less than 15%: forget it
  • A business with gross profit margins of 15% - 20%: possible
  • A business with gross profit margins of 20% or more: ideal

© 2007 Sanjeev Aaron Williams & Cashwerks All Rights Reserved

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