By: Jack Stieber
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Strategies to turnaround a struggling business with cash flow problems has many sides. Benefits, payroll and other expenses directly related to the number of people working for a company may be one of the largest expenses.
There may be areas where a company can cut cost by eliminating positions that are no longer necessary and determining what benefits and other costs may be eliminated. Additional costs like office leasing may be renegotiated, as well as non-essential supplies and other items purchased for the office.
Pricing and marketing of your product or service and being competitive is very important. Making sure you are not overpriced and your marketing budget is spent effectively, reaching the target customers.
The most important thing to consider when marking an effort to turn your struggling business around is how quickly you can access working capital. One way to speed up cash flow is to decrease the length of time it takes for the customer to pay. Changing the terms, which your customers may not appreciate may damage your relationship. Offering discounts as an incentive for early payment may be helpful with some, however, it may not be beneficial for all of your customers.
Invoice factoring is a more effective solution for managing cash flow, giving you access to working capital almost immediately. The rates charged for factoring is likely much less than the revenue lost from offering customer discounts. Factoring is a good alternative whether the business is struggling or just needing to manage cash flow.
American Receivable has been helping with cash flow for over 37 years. Our dedicated client account managers work to find a solution for the specific needs of your business. American Receivable uses state of the art software and online options to keep the business owner informed. American Receivable does not require long-term contracts or factoring minimums and no hidden fees. American Receivable’s rates are based on the creditworthiness of your customers. We offer funding available within 24-48 hours.
American Receivable was rated the #1 Factoring Company in the country by TopTen Reviews for 2015, 2016 and again in 2017.
Call us today and see how working with us will allow you more time to manage and grow your business without the worries of cash flow.