- Accounting and Payroll Service
- Best Metrics for Key Performance Indicators
- Best Practices for Invoice Factoring
- Cash Flow
- Extending Credit to Customers
- How to Identify a Business Partner
- Increase Cash Flow
- Money Saving Tips
- Purchase Order Financing
- Setting Priorities
- Small Business Decision-Making
- Small Business Lending
- Small Business Management
- Tech Tools for Small Business
- The Need for Optimism
How Factoring Your Accounts Receivable Can Lead To Faster Growth
Your sales team is pushing like SalesZillas for 4 days out of 5, ready to spring at the chance to open new key accounts. But when they do, and the pipeline grows, you are stuck waiting 30, 45 or 60 days to get paid. It’s a major drag on your plans to grow your business. But what can you do?
Just as there are alternatives when you go to buy a car, there are alternatives for getting paid faster.
Nowadays, with small business lending growing scarce in tight times, your best bet may be to utilize a factoring company that buys your invoices and pays you cash upfront. I refer to an entity that can give you a portion of the money owed, upfront.
No hassle, no delay.
Sound like a pipe dream?
It isn’t, and I will tell you why using a factoring firm makes eminent business sense.
You think, breathe and dream how to expand your business, but every avenue open to you requires working capital and there’s the sticking point. Think what could be accomplished if working capital could be obtained faster, so more of your expansion plans could be realized? A factoring company will give you cash within days, so you move forward opening additional key accounts or producing the next run of shiny things.
No need to tie up capital for weeks, when the world operates 24/7 and you can winnow the cycle down to hours. As cash is freed up, get cracking on building your business, not waiting for invoices to be paid.
This is the business of our firm here, Plus Funding Group. A bunch of hard working guys, who enable you to increase the rate that cash comes in, so you can do your job better by aggressively building business.
Then, you can focus on the work at hand, i.e. selling your Urban Daddy-type clothing, or your Buckingham Palace-quality paint brushes, or even work orders for newly installed shower stalls.
How does accounts receivable factoring increase cash flow?
Factoring is predicated upon the invoiced customer’s credit rating, and not the credit rating of the firm that owns the debt. So the firm that has a large value of accounts receivable with satisfactory credit rating hits the jackpot, which in this case, means immediate cash.
As any kingpin in business will tell you, turn it around and invest in what you need to expand your business today, to get a jump on the competition.
Photo courtesy of Creative Commons 2.0, Pedro Moura Pinheiro.