Banks are seeing steady demand for loan request. But due to tightened credit standards, few loans are being approved. This makes alternative lenders; like invoice factoring, even more important to keep the economy going.
As more business owners turn to factoring as their financial solution there is a growing amount of confusion about account receivable factoring and the services it provides.
Business owners turn to factoring to increase their cash flow. Instead of having to wait 30-90 days to be paid by their customers, business owners sell their accounts receivable to a factor and get 80% to 95% of their invoice amount. The business owner should have a clear understanding of all fees the factor is charging for every transaction. Cash flow isn’t the only service a top-rated factoring company offers.
In today’s economy, keeping current credit information on your customers is critical. Long standing customers with a great record of paying their bills, might now be in their cash crunch without adequate resources to pay their obligations. A good factoring company will be using several resources to monitor the credit health of your customers. Top-rated factoring companies will provide this very important service for free.
A good business owner is monitoring their business daily. Their factor should make that process easier with a customer friendly portal. The information should reflect real time entries, be understandable and downloadable to your accounting system. By knowing their numbers, a smart business owner is proactively pointing their business towards success.
Since 1978, American Receivable has delivered these services, and more to help our clients conquer the challenges of this economy. By maintaining the founding owner managers, American Receivable uses its years of experience to help guide their clients thru the most challenging times. To learn how we can help your business become cash flow positive, call Jack Stieber or Brad Gurney at 972-404-4726 or call complete our quick application form.