A business in the utility industry faces lots of challenges. First of all, acquiring the equipment, machines, and infrastructure for utilities is a very expensive endeavor. You could easily spend hundreds of thousands of dollars on one equipment alone. And when you consider the fact that often times your clients have payment terms, cash flow can be a problem. Fortunately, factoring can handle this situation easily.
Why Factoring is Important
The reason why factoring is so important is that it gives you the money necessary to operate and expand your business. The same money can also be used to pay for bills. By signing up with a reputable factoring company you will have an easier time signing in other carriers. The reason of course, is they know the factor’s reputation. This also means you can use the opportunity to strike a negotiation for discounts.
Aside from this, a factoring company can provide more incentives that can help your company prosper. Because the utility industry is very competitive, hiring the right factor is essential. If you’re going to hire a factoring company, they need to have the rates and programs your business specifically needs.
Other Benefits of Factoring
Anyone who has worked in the industry can tell you that some clients just take too long to pay up, and carriers even more so. When this happens your credit rating goes down and the revenues along with it. With a factor this won’t be an issue and a utility business can be assured of bills paid on time. In addition a factoring company will help in carrier payments and make sure that nothing is left unpaid.
Second, these factoring companies offer several programs with different payment options. Regardless of your budget, a factoring company will be able to provide an option to help you out. If you have never used factoring before, what all this translates to is immediate funds for invoices and no more headaches.
Factoring companies can offer much more than these, as they can provide different kinds of factoring services including recourse, medical, spot and traditional factoring. In addition these companies may also provide related services such as asset based lending and more.
Today it isn’t difficult finding a factoring company, but you need to make sure that the invoices you provide are for completed tasks. By making sure the invoices are free of legal issues or other problems, transactions will proceed smoothly. If you have never availed of their service before, rest assured that factoring is legitimate and acceptable.
A highly reputable factoring company also provides customizable payment payment schemes and online accounting. There are of course several factoring companies so you need to make sure that you hire professionals and those with experience.
If you’re looking for a factoring company that caters to the utility industry, there’s NeeBo Capital. Located in Boca Raton, Florida, NeeBo offers rates as low as 0.59% – 1.5% for 30 days. In addition there is no financial or monthly minimum needed, and the terms are very flexible.