For any organization, the opportunity to reduce the collections process, raise funds quickly and boost business by taking on further orders are all possible by partnering with a factoring accounts receivable company.
Where a traditional loan is either impossible to achieve, or a slow process, using the services of a factoring accounts receivable company can help keep you in business and allow you to manage your own debts competently.
Your Cash Flow Can Be Improved In 24 To 48 Hours
By thinking ahead and working closely with an effective factoring company, you can pass your invoices to them, and because they have already cleared the companies you deal with, you can have access to your capital within one or 2 days.
This is far quicker and more effective than sourcing traditional funds. For many organizations that have not been in business long enough to receive loans from their bank, the option of factoring accounts receivable can be an enormous boost to cash flow.
Reducing the Process of Collections
Although your organization may have agreed a 30-day payment period, this is often stretched to 60 or 90 days by larger companies. This is because they have the power to make you wait, especially when you know that future orders will be coming.
By factoring your invoices, that three-month delay made be reduced to just a few days and provide you with the necessary cash flow to be up to plan your business efficiently.
Help Paying Your Own Debts
While companies keep you waiting for months before paying your invoices, you may not have the same success with your own debts. Some companies may insist upon cash before releasing stock to you.
By not having sufficient cash flow, you may not be able to take advantage of specific deals which will help your organization over the longer term. Factoring accounts receivable may have solved the situation.
