How does your company get the money it needs to grow? The most stable growth for the business owner comes from accounts receivable and invoicing. Before you can grow a business, you have to first have the consistent cash flow to pay out daily operational expenses. Entrepreneurs know that happiness is positive cash flow, that is why invoices and accounts receivable are so important.
Slow paying customers, or a skipped payment, can wreak havoc on a company’s cash flow. Business owners often have to decline opportunities to grow because of slow cash flow.
Enterprising business owners are always looking for ways to grow their business and smooth out their cash flow. Invoice factoring is the way to speed your accounts receivable so that you can stay current on your expenses and payroll. Invoice factoring is not bank borrowing – it is very different.
Factoring companies buy your accounts receivable so that you do not have to wait to be paid by your customer, the factoring company waits. Most factoring companies will advance 85%-90% on your invoice amount, then once your customer has paid the factoring company will pay out the remaining balance less a small discount fee. This can be the cash flow solution you need to take on larger customers.
Getting awarded contracts from larger customers can be a sign of success. But larger customers will demand extended payment terms. These delayed payments combined with what are often much larger invoices will stretch your tight cash flow past the breaking point. By partnering with a Top Rated Factoring company you now have the confidence to pursue larger customers without worrying about missing a payroll.
Another benefit of working with a factoring company is that the factoring company will greatly reduce your risk of credit exposure. Factoring companies will actively monitor your customers for any sign of slow payment. This expertise helps steer business owners away from customers who greatly extend agreed to payment terms and take unearned credit. This feature is extremely valuable to new businesses that would be crippled by a big customer that never sends full payment.
American Receivable offers this help to our clients. We maintain our Top Rating by offering competitive rates, flexible factoring programs, no hidden fees and never charge an application fee. Use our streamline application to put the experts at American Receivable at work for you.