The holidays are upon us and often bring stressful challenges for some business owners. Many businesses tend to see a slowing trend toward the end of the year. Some businesses delay payments to suppliers resulting in a trickle down effect to the supplier, resulting in a cash flow deficit. This affects the supplier’s available cash for business operations. Purchasing and manufacturing become limited due to a cash shortage and payroll is a priority. Even with a bank loan, the business owner is responsible for re-paying the loan. If customers are delaying payments, the business owner may not be able to comply with the loan agreement.
Choosing the right factoring company is an important decision for you and your business. The right factoring company will help you maintain cash flow and grow your business while the wrong choice can leave you with a bigger financial gap than when you started.