Could Invoice Factoring be Right for My Business?
Invoice Factoring has many advantages for companies using this method: the most obvious being a stabilised cash flow.
If your business regularly experiences cashflow deficits, whether due to seasonal products or services, or the initial expense of raw materials, equipment, or wages, then invoice factoring can be an effective and reliable way to provide financial flexibility and stability.
Typical invoice factoring agreements will have the factoring provider take responsibility for the management of all company invoices for a fixed period of time. This means that as well as providing your company with potential advances on all invoices, they can also perform all customer credit checks and take on credit control duties.
Having the factoring provider responsible for credit control; chasing up customers on any outstanding invoices, allows your business to spend less time and energy doing this itself. This means you can concentrate on providing the product or service that you are paid for, and not worry about when these payments will be made.
It’s important to keep in mind that having a ‘third party’ chase up payments has a potential impact on your relationship with customers. You should research the skill and reputation of the factoring company, and consider if invoice factoring is the right financing option for you.
At 亚洲黄色图片_男女做爰视频免费, we understand the importance of relationships and the need for flexibility in business. If you’re interested in invoice factoring but unsure if your business meets the requirements, please get in touch with us today. We’ll tell you quickly and honestly if this type of finance is right for you.
If you think Invoice Factoring may not be the right option for you, Calverton have other finance solutions that may work for you such as Confidential Invoice Discounting, and Selective Invoice Finance.