Factoring Comparison With & Without Factoring
|
|
Year 1 |
Year 2
|
|
|
Before Factoring |
With Factoring |
|
Revenues
|
$1,000,000 |
$2,000,000 |
|
Cost of Goods
|
$600,000 (60%) |
$1,200,000 (60%) |
|
Gross Profit
|
$400,000 (40%) |
$800,000 (40%) |
|
Total Overhead
|
$380,000 (38%) |
$480,000 (24%) |
|
Cost of Factoring
|
N/A |
$40,000 |
|
Net Profit
|
$20,000 (2%) |
$280,000 (14%) |
One Million Dollars Factored In Year 2.
|
|
|