Another Tax Loophole

Just image, you are a small manufacturing company, business have been good, but yesterday you received a phone call from a client who desires 50,000 widgets in 45 days. The client is a large account and if you turn the business down, he may never name you again.

Problem: You need to engage more than staff to ran into the manufacturing needs of this customer. AND the client said nil about an advance payment. In fact he mentioned that he would be paying nett 30 once cargo was received.

You need working capital and you needed it yesterday

You sit down down and you begin to think. Well let’s see, it will take much needed clip to apply to the bank for a loan, your married woman endangers to go forth with the children if you refinanced the house 1 more clip for business grounds and your credit cards are maxed out.

As you look around your messy yet effectual office you inquire where you can get the workings capital you need?

Sitting in presence of you is your secretary mailing out invoices. You slowly walk over to her desk and you inquire "What’s the sum amount of bills that we have got outstanding at this very moment?

Your secretary looks on her computer, moves the rat around a few times, chinks a couple of times, and then hits something that brands the pressman start singing. She looks up at you with those "I desire a raise" eyes” and says, "it’s coming out on the printer"

You walk slowly over to the pressman and pick up the sheet of paper. Just when you believe you are ready to read and understand the page another page prints. She states very softly, "the second page will give you the total" You pick up the second page and allow your eyes to coil down to the underside of the page and much to your surprise the sum amount is well over $300,000.

You don't desire to name a Factorization company because, they will dismiss your Invoices and you won't get all your monies Oregon make you?

Your secretary reminds you that all the fees for Factorization the Invoices is tax deductible and in the end the Factorization will cost you nothing. (Your secretary is taking tax social classes at night, something about becoming more than valuable to the company and earning more money) She also reminds you that you can Factor the Invoices and be paid up to 92% of the sum bill amount within 48 hours. Plus, the Broker makes not charge you.

It is at this point that you seek to retrieve why you married your married woman instead of your secretary?

You quickly change from that idea back to who should I call? There are so many Sharks in the H2O and about $200,000 of the bills are Government Contracts.

You cognize you need a Factorization company whose rates are just and who can deal with the eternal paperwork that the Federal Soldier Government necessitates to Factor one of their Contracts.

Needless to say, he called me; the name calling have got been changed to protect the guilty.