The economic news continues to be confusingly double sided. Wall Street is again nearing record territory while Main street is dealing with high unemployment, bankruptcies, and late payments. Banks and business owners have already taken notice and are doing everything they can to gather liquidity to survive this storm.
For the last eight years business owners have made big investments in their business, and with the benefit of a strong economy seen their investments pay off. Now with the uncertain market smart business owners are starting to hoard cash. Customers have cancelled future orders and delayed payments, making business owners go from the growth mode to survival mode.
Leasing is now more popular than buying since it preserves capital. And used equipment is now at a premium as everyone is looking for a bargain. Business owners have delayed projects and been forced to layoff employees, doing everything necessary to reduce expenses.
It still takes money to make money. And business owners that have their money tied up in accounts receivable have found factoring to be a strong ally. By factoring, business owners get the benefit of immediate cash for their invoices and the expertise of the factor’s credit department.
American Receivable has already successfully navigated the economic storms of the last 42 years. Some of the industries we’ve helped include:
- Oil & Gas Service
- Service Companies