Cash flow is vital to keeping your business moving. If you run out of working capital, you can’t maintain your inventories and other expenses, and that can result in lost sales and customers. Cash flow can be especially difficult for businesses with slow paying customers. Factoring your invoices is a great way to keep cash moving in your company. It works by having a 3rd party company purchase your open invoices and then they collect the money from your customers for you. This arrangement gives you the cash you need when you need it the most and frees you up from having to manage your accounts receivable, enabling you to generate more business. Here are some of the other benefits of factoring services:
If you run into a situation where you need cash quickly, a factoring company will usually provide payment in less than 24 hours. This gives you assurance that you will be able to meet your payment obligations without worrying about when you get might get paid by your customers.
Reduced cash cycle
Factoring reduces the amount of time between sending the invoice and receiving payment. This can allow you to invest more in goods and services, giving you an opportunity to make even more profit.
No companies receive payment from all their customers. There are always customers who don’t pay and it costs more money to collect their debt. Factoring companies deal with thousands of businesses every day and are experts at credit management and collections. They monitor payment trends to know how they are likely to pay and have access to several different credit reference agencies. The cost of these services is often out of reach for the average small business owner but they are included in the fees paid for the factoring facility.
Improved cash flow
One of the most obvious benefits of factoring is improving your cash flow. Factoring takes the guess work out of when you will receive payment and makes it easier to expand product lines and keep your bills paid.
Invoice factoring services in Kennesaw, GA. could be what your company needs to take its services to the next level. It’s a great way to keep cash flowing in your company. It removes the guess work from your accounts receivable and alleviates a significant amount of stress. You need to consider factoring in Kennesaw, GA to make sure you have the cash you need.