Requests for bank loans by small, medium enterprises is still steady. But with the uncertain economy, banks have tightened their lending standards. This leaves more and more business owners looking to alternative lenders to meet their financing needs.
As more business owners investigate factoring there remains an amount of confusion about invoice factoring and the services it provides.
Account receivable factoring is a simple way to increase your cash flow. Instead of having to wait 30-90 days to be paid by your customer, you sell your invoice to a factor and get 80% to 95% of your invoice amount. Be sure to have a clear understanding of all the fees the factoring company is charging. Cash flow is not the only service a top-rated factoring company offers.
As news of a recession grows, keeping current credit information on your customers is critical. Even long standing customers with a great record of paying their bills, might now be in a cash crunch and suddenly become a slow paying customer. A good factoring company will be using several resources to monitor the credit health of your customers. Top-rated factoring companies will provide this service for free.
Keeping up with the daily details of your business is vital. Having access to an on-line portal that presents your account information in a clear and intuitive way will be another benefit for you and your accounting staff. By having access to real time numbers and downloadable reports you will have the ability to manage and maximize your factoring relationship.
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. Call us today to find out how American Receivable can help you or complete our quick online application form to find out how American Receivable can put your company on the road to success.
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