Below are the Benefits of Factoring…Feel Free To Add
If you own a business and extend credit to your customers, odd are you understand the benefits of factoring invoices
For business owners who are looking to learn more about these potential cash flow benefits this information will be very helpful:
The economy has not been very helpful to your bottom line, we also see a rise in competition and many businesses owners are finding themselves short on cash.
This is a direct result the demanding terms of their customers. Nonetheless, there is an alternative financial strategy known in north America as invoice discounting, or factoring. The Factoring strategy allows your business to be more competitive while improving your cash flow, credit rating, and supplier discounts. All of these benefits without giving up any ownership, and the best part is your financial situation does not affect if you are approved. Approval is based on the creditworthiness of your customers.
Factoring is a easy process. You sell your invoices to a Factor and the Factor gives you cash within 24 hours for an agreed discount. This discount varies in the industry so be aware. If you shop around you will notice companies who will try to lure you in with 1% rates, but when you make contact with the sales team these rates do not exist.
NeeBo Capital makes it our job to only promise rates we can back up, this has been a key to our success, and word of mouth is a powerful tool.
Feel Free to add to the list, here are some benefits to Factoring:
Get Instant Cash-Flow without building debt:
. Receive cash for invoices overdue NOW
. Get Marketing dollars for extra business
. Apply improved cash-flow to grow your market share
. Purchase equipment to grow operations
You Can build you Service towards Customer Credit:
. Take action and Reduce bad debt
. Make credit approvals for new customers 10x faster
. Have a better financial picture on future business opportunities
. Cut staff costs of chasing unpaid invoices
. Get Accounts Receivable Management
With Factoring you are in control of Cash Flow:
. You decide on the amount you factor, 1 invoice or 1,000
. There are no maximums and no minimums in the quantity you can factor.
. Funding is based on the financial strength of your customers.