Let Factoring Help with Additional Funding Needs for Your Manufacturing Business

The conversion of raw materials to a finished product is done through the process we know as manufacturing. To be in this kind of business, the entrepreneur must have the acumen to predict market demands, have access to a regular supply of raw materials, conduct quality control procedures, and ensure the quality of the resulting product.

 

These requirements would need sufficient funds all the time to stay in business. That’s why a business such as this cannot afford to have cash flow problems. Ironically, this business is one of those who do run into fund shortage and end up in bankruptcy. If you’re into the manufacture of products, it’s time you think about engaging the services of a factoring company.

 

Your Best Financial Management Solution

 

Maybe you tried alternatives to fund your company in the past in the forms of investors, credit cards, friends, other lenders or bank loans to no avail. This is understandable because while your business has growth potential, there are other circumstances which prevent these alternatives from sustaining your business consistently. Investors may grow impatience over the return on their investment, friends might need the money more than you do, and credit cards, other lenders, and bank loans will charge you interest rates that may well be more than what your revenue can pay up.

 

Factoring will not put you through embarrassing or desperate financial situations. In fact, factoring is perhaps the best financial management solution that you can turn to when your manufacturing business faces a cash flow crisis. Your invoices are your collateral to get the funding you badly need. The factoring company buys these invoices and collects the payments from your customers. Compare that arrangement with a bank, for instance, and you know at once that the convenience of being approved immediately or even obtaining the loan within a week is not going to happen.

 

Why Factoring Cannot Be Topped By Other Lending Institutions

 

Here are the benefits of factoring which no other lending institution can top:

 

  • Fast, quick, and easy access to cash: no credit history or background investigation as a requirement for approval.

 

  • No addition to the business balance sheet as a liability because the funds are not considered loans. That said, there also no loan payments or loan interests to pay.
  • There are maximum or minimum requirements regarding the amount of funds that the company receives since the business owner selects what invoices to factor and the how often factoring is done.

 

  • An improvement in the company’s credit line means there is an increase in the business revenue and therefore an increase in the company’s access to more funds.

 

  • There is no demand on the part of the factoring company on how the cash advance should be spent and the business is not required by the factoring company to buy assets or equipment.

 

  • Increase profits and fund the growth of the company.

 

  • The creditworthiness of a company’s customers and not the company’s financial condition is the determining factor in approval by a factoring company.

 

  • Collection of payments to the company is done by the factoring company.

 

How Your Business Can Avail Of Cash Flow Funding

 

Given all these benefits, consider the services of a factoring company like NeeBo Capital. From financing production, supply chain, purchase order, commodities, and contracts, to asset-based lending such as financing real estate, A/R, inventory, and equipment, to other lending options such as merchant card services, credit insurance, equipment leasing, merchant cash advance, franchise financing, and restructuring of payables, NeeBo Capital can provide all these with professionalism, reliability, and quality service.

 

Numerous service industries – gas and oil, aviation brokerage, food service, cable ads and marketing, financial recruiting, freight and trucking, fitness equipment development, contractors and installers, and agriculture and dairy, among others – have benefited and continue to benefit from the services provided by NeeBo Capital to them. Visit www.neebocapital.com and out how your manufacturing business can avail of a first-rate cash flow funding service.

Published by

Chris Lanchech

Hi everyone, my name is Chris and I am a junior analyst at Neebo Capital and an inspiring blogger. We enjoy speaking with business owners and entrepreneurs who come to Neebo Capital looking for cash flow solutions. Give us a call toll free at 1-888-382-3766 or Visit us online at www.neebocapital.com

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