What are Your costs for NOT Factoring?
Consider the time value of money and the benefits of improved cash flow to your business. By having, cash for your invoices within 24 hours are you able to pay your suppliers faster and receive better discounts. Are you able to fulfill your next order to XYZ Company and make payroll without tapping your line of credit at the bank? Can you offer longer terms to larger customers and attract more business? Can improved cash flow help your business grow or survive without incurring more debt at the bank? Can the financial benefits of improved cash flow to your business offset the fees of Factoring, and then some? Sure it can, the savings alone in taking discounts from your vendors can equal the cost of Factoring. All the other savings are in your pocket! Factoring is a smart business decision. Why are you doing it?
Is Cash needed immediately for growth or survival?
Is long billing cycles putting a strain on your business cash flow? Despite increasing sales, does the management of receivables and payables seem like a juggling act? Could your business increase sales by offering better terms to your new and larger customers? Are you spending too much time collecting from slow paying customers and not enough time building your business? Is your bank turning you down for traditional financing due to years in business, profitability, lack of assets, personal guarantees or financial strength?
Have you considered turning away new business due to slow cash flow?
These are challenges many businesses face that can be solved with Factoring.
Benefits of Factoring Receivables
The advanced funding you receive for your receivables and the discount fees you will pay are based solely on the financial strength and credit worthiness of your customers, not your business!
You receive Cash for your unpaid accounts receivable invoices. Usually the factoring company buys the invoice from you for an amount less than its actual face value (70-90%). When the Factor later collects the full amount of the invoice from your client, you will receive the remainder of the advance less the factoring fee (discount rate). Fees will vary depending on the total dollar amount you intend to factor on a monthly basis.
Need a flexible financial solution that can help your business be more competitive while improving your cash flow, credit rating, and supplier discounts? Factor as much as your want or as little as you want. You decide. No obligations. There are No minimums and No maximums in the amount you can factor. No binding contracts, if that is what you want.
Unlike traditional bank financing, factoring relies on the financial strength and credit worthiness of your customers, not you. Here’s why you should use Factoring services:
Offer Better Terms – Win More Business
With Factoring, you can attract more business by offering better terms on your invoices. Most companies negotiate on price to win business in a competitive market, but with Factoring, you can negotiate with terms instead of price.
To your customers, better terms can be more attractive than better prices.
When using attractive terms to win business, you can build the cost of factoring into your costs of good and services.
Example: A new customer may choose to do business with your company because you can offer NET 30 or NET 45 terms while your competitor (who isn’t factoring) requires payment up front but has a 3% better price. If you factor the subsequent invoice at a discount of 3%, you have leveraged factoring services to win the business at no extra cost and improved your cash flow at the same time.
Improve Cash Flow * NO Additional Debt *WIN over customers
Your Business Receives:
* Get cash in 24 hours or less from your outstanding invoices! Eliminate long billing cycles.
*No new debt is created. Factoring is not a loan. This allows you to preserve your financial leverage to take on new debt. Improved credit rating.
*Purchase capital equipment to expand your business.
* Increase inventory for quicker shipments or handle seasonal inventory needs.
* Market for additional business.
* Take trade discounts. This alone can offset Factoring fees and all the other savings are gravy!
* Pay off nagging, expensive delinquent obligations.
* End payroll worries.
* Meet tax requirements on time. No more exhaustive penalty fees.
* Negotiate discount purchasing.
* Unlimited sales and profit potential.
*Simple to start and use
*You keep control
* Reduce stress, improve planning, focus on what is critical to make money.
Customer Credit Services:
*Reduce bad debt expense, work with experts at collecting.
* Streamline credit approvals for new customers.
* Improve decision-making on new business.
* Reduce administration costs: long distance calls for collection and credit investigation, postage, staff, monthly statements and more.
* Larger customer credit lines and better terms, which increase sales.
* As you grow, your payroll budget for credit and collection department is minimal.
Accounts Receivable Management:
* Reduce administrative costs. Factor will post invoices and apply cash applications.
* Improve customer relationships. You are no longer the bad guy looking for payment.
* Improve receivable turns. Fact: Customers pay Factors before independent businesses.
* Improve accounting performance; timely reports, online access and more.
* Redirect your critical resources to marketing and production
If you are looking to receive an increase in cash flow and increase your bottom line profits, you need to factor your invoices now!
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