What exactly are your costs for NOT factoring?
Consider the time value of money as well as the benefits of improved cash flow to your business. Paying your suppliers is possible through having cash within 24 hours so you could also receive better discounts as well. Are you able to fulfill your next order to XYZ Company to 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 earnings 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 debtor factoring, and then some? Sure it could, the savings alone in taking discounts from your vendors can equal the cost of Factoring. You can keep those other savings! Factoring is a smart business decision. Why aren’t you doing it?
Is cash needed immediately for growth or survival?
Can be your business cash flow stressed having long billing cycles? Despite increasing sales, does the management of receivables and payables appear to be a juggling act? Could your company 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 enterprise? Is your bank turning you down for traditional financing on account of years in business, profitability, lack of assets, personal guarantees or financial strength?
Have you contemplated turning away new business due to slow earnings? Debtor factoring is actually a solution made to fix the various challenges many businesses face today.
Great things about Debtor Factoring
Simplicity
The advanced funding you receive for your receivables as well as the discount fees you will pay are based solely on the financial strength and credit worthiness of the customers, not your business!
You receive Cash for your unpaid accounts receivable invoices. Normally 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 most of the advance less the factoring fee (discount rate). Fees will vary depending on the total dollar amount you intend to factor monthly.
Flexibility
Are you needing a financial solution flexible enough to support your business to be more competitive while improving supplier discounts, credit rating and money flow? Factor just as much as your want or as little as you want. You decide. No obligations. The amount you can factor are without minimums and maximums. No binding contracts, if that’s what you would like.
Unlike traditional bank financing,debtor factoring depends on the financial strength and credit worthiness of one’s customers, not you. Here’s why you should use debtor factoring services:
Offer Better Terms – Win More Business
With Factoring, you can attract more business offering better terms on your invoices. With factoring, it is possible to negotiate with terms instead of price unlike what most companies does.
To your customers, better terms can be more attractive than better prices.
When you use attractive terms to win business, you can build the price of factoring into your costs of products and services.
Example: A different customer may choose to do business with your company since you can offer NET 30 or NET 45 terms while your competitor (the ones won’t be factoring) requires payment up front but has a 3% better price. It’s possible to leverage factoring services to win the business at no extra cost and improve your cash flow as well like factoring the subsequent invoice at a discount of 3%.
Improve Cash Flow* NO Additional Debt *WIN over customers
Your Business Receives:
* Get cash in 24 hours or less through your outstanding invoices! Eliminate long billing cycles.
* No new debts are created. Factoring is not a loan. This allows you to preserve your financial leverage to take on new debt.
* Improved credit rating.
* Expand your company by purchasing capital equipment.
* 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 back nagging, expensive delinquent obligations.
* End payroll worries.
* Meet tax requirements by the due date. Forget about penalty fees that are exhausting.
* Negotiate discount purchasing.
* Unlimited sales and potential profit.
If you are looking to receive an increase in cash flow and increase your bottom line profits, you need to use debtor factoring now!
