Cash flow planning today, your smart business parachute. Nice to have before you need it! Why do some business owners wait until the last minute to fix cash flow gaps that their business is experiencing?
For example; You extend terms to a good trustworthy customer, expecting to get paid in 30 days from the date of delivery. At first the customer is amazing, everything is going great and running smoothly between your two companies, until one day when all of a sudden their payment doesn’t arrive as promised. You figure, ahh it must be a slight oversight on their end. So you make a note to give ’em a call.
A week passes and still no check. So you call and email again and this goes on for about 20 more days. Your note reminding them to pay you now feels more like a ransom letter than a friendly reminder.
So what happen? Well no one really knows at this point. Yes you called and emailed Accounts Payable and they promised the check was in the mail, but still no check. Their slow-pay is now really starting to affect your payroll and business operations. I mean this is a big customer and their invoice amount due is enough to cover a whole month worth of payroll.
There are two ways this usually plays out:
1.) Your customer finally sends the check, 28 days late and you continue with business as usual, however now each time you invoice them after delivery, you have this gut-wrenching feeling in the pit of your stomach, wondering when and if they’re even going to pay. Will you need to borrow money off your personal credit card again to cover payroll if their check is late again or worse yet, never arrives?
2.) The relationship was already fragile and this was the straw that broke the camel’s back. Your customer is offended that you called and emailed so many times, almost implying that they weren’t good for the monies owed or something.
In any event, either of the two above scenarios adds stress to a business relationship and can usually be avoided altogether. Yes of course it can, if customers would just pay on time, however it’s a proven fact that some customers just slow-pay and that is how it’s going to be. So knowing that some customers just have it in their business DNA to slow-pay, how can your business protect itself from the negative side affects of unpredictable cash flow in your business?
The answer, prepare your cash flow parachute just encase this ever happens to you. Don’t be caught by surprise and interrupt a good thing you have going at your business. You shouldn’t be punished for working hard because one or more of your customers had slow-pay DNA.
You can unlock cash tied up in your accounts receivable invoices by factoring. Factor finance companies buy your invoices for immediate cash so you get paid within hours of invoicing customers. You won’t have to worry about slow-paying customers, you can continue working hard and growing your business as usual.
Factoring enables you to cover;
and invest your earnings faster to help secure more new customers and grow your business faster.
Factor financing grows with your business. The larger your business gets the more immediate capital you can access from your invoices. You don’t need to create friction between you and slow-paying customers, all you need to do is focus on what you do best, running your business and creating new customers relationships.
It’s recommended that you get a few offers when choosing a factor finance company that specializes in your industry. Visit www.factorbid.com and select the ‘Get Started’ button to quickly and easily get competitive offers to buy your invoices for immediate cash. When Factors compete, You Win!
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What is Invoice Factoring – Invoice factoring (also called accounts receivables financing and invoice discounting) is a smart business fiance tool that gives your business immediate access to monies your customers owe you, on the same day an invoice is generated, so that you don’t have to wait 15, 30, 60, 90 – days or longer -for customers payments.
Access to cash that’s tied up in your accounts receivable invoices enables you to reinvest working capital into your business more quickly.
Benefits of Factoring Invoices:
Take on more new customers
Expand your business operations
Cover payroll and hire more new employees
Pay suppliers to receive a volume purchase discount
Pay off higher interest loans and equipment financing
Take on bigger orders more quickly
Cover day-to-day operating expenses
Having the ability to access immediate cash and increase working capital will help your business grow more quickly, keeping you competitive and relevant in your industry.
How The Factoring Process Works:
Your business generates a customer invoice. Instead of waiting weeks or months for the customer to pay-
Factor the invoice with your factor finance partner and get same day funding up to 98% of the total amount of the invoice, for a small fee – which could be as low as 1% of the amount of the invoice.
Once your customer pays the full amount of the invoice, the amount held in reserve is also returned to you, minus the factoring fee.
Why Use Factor Financing For Your Growing Business?
Factoring enables you to turn the money customers owe you into working capital, that you can use for your business today. There is not need to wait weeks – months for the chance of customers to pay, instead free up working capital immediately.
More Working Capital Enables Your Business To:
Offer generous credit terms to your clients as a competitive advantage
Leverage purchasing power to negotiate discounts with suppliers and vendors
Improve your ability to meet day to day expenses
Take on new customers or fulfill larger orders
Reduce accounting -related costs
Reduce your companies financial risk from bad debt with non-recourse factoring
A factor (in a non-recourse factoring agreement with your company) assumes the credit risk for the factored invoices. If a customer is unable to pay for credit reasons, the factor will absorb the loss, not your business!
There is also recourse factoring agreement, which is less expensive, because your company assumes more risk. With recourse invoice factoring You may also be required to repurchase invoices that remain unpaid by your customers and cover your own legal or collection costs in collecting payment from non-paying customers.
Common Reasons Business Owners Use Factoring:
Slow-paying customers that are creating a cash flow crunch
Customer accounts with extended terms, stretching out payment due date
To offer longer payment terms for customers, to attract new customers and/or match what competitors are already doing
Need access to immediate working capital to take advantage of emerging business opportunities – like taking on bigger clients or fulfilling larger orders
Speed up cash flow to meet operating expenses
Expedite cash flow to take advantage of supplier vendor quick-pay discounts
Reinvest money tied up in receivables more quickly
Grow their business faster in order to increase their market share within their industry
Make a larger return on investment each year
Utilize the experience of the factor finance company to help organize and deploy a more efficient bookkeeping and collection cycle
If you’re ready to see how much more money your business can access every month by factoring your accounts receivable invoices, then simple click the Get Started button at our www.Factorbid.com website.
Factor bid quickly matches your business with factor finance companies that specialize in your industry and are eager to earn your business and buy your accounts receivable invoices for immediate cash.
At factor bid -you’ll receive a few competitive offers from factor finance companies. Review each offer and decide which offer is the best fit for your business.
Factor bid is fast, easy to use and secure. Spend a fraction of the time (locating the top factors) and receive the knowledge and leverage you need to negotiate the best financing deal for your company.
Factor bid is free for business owners and you’re under no obligation to factor. Find out what your financing options are within a few minutes at Factor Bid.
On The Go! – Download Factor App – to get started comparing offers!
Factor App invoice financing on your Apple Smartphone
Factor App invoice financing on your Android Smartphone
When deciding on which factor finance company is best for your business financing, implement this checklist to find out everything you need to know before factoring. It’s recommended that you get a few competitive offers to ensure you find the best factor financier match for your growing business.
CHECKLIST | FACTORING
Use Factor Bid to compare invoice finance offers.. Free!*
Use Factor Bid to quickly match your business with factors that specialize in your industry!
Does the factor have experience in your industry?
How long is the factoring agreement?
How fast do you get paid?
Do you offer non-recourse agreements?
What is the benefit of a non-recourse agreement?
How will you communicate with the factor and what type of reports will you receive?
How often will you and the factor need to meet or talk each week?
How quickly does the factor collect debts?
How does their debt collection process compare with your debt collection system?
What is the factors idea of a ‘quick response’; hour, half-day, day, week?
How do you get a customers credit limit increased?
What happens if a customer breaches their credit limit?
What accountability is in place if the factors performance is unsatisfactory – for example will you be penalized and forced to pay charges for debts the factor fails to collect?
How will the factor handle debt collection? What is the process and methods used?
When will statements be sent out?
What happens if a customer disputes an invoice?
How will the factor follow up with overdue debts? Daily, weekly, monthly?
Does the factor send certified letters, make phone calls or send emails when payments are overdue by the debtor?
What will happen when a customer’s payments are seriously overdue?
What format will the final reminder take and when will it be sent out to the debtor?
Does my company always get a copy of all communications, collections and final notices sent out to an overdue customer?
What further action will the factor use to collect overdue debts?
Will a collection agency be used to collect overdue debts?
Will legal action be taken to collect overdue debts?
What would happen if you wanted to change factors?
Is there a notice period to stop factoring? If yes, how long (3 months) or longer?
Is there a fee to stop factoring? If yes, what is that fee?
What if you want to change the services provided by the factor?
Make sure and read the factoring agreement and ask questions about terms and conditions that you’re not familiar with or do not understand. What will it take to end the factoring agreement is their performance is unsatisfactory?
One thing to consider, if you’re not making money and increasing your business by then either is your factor finance company. Factors want your business to grow. They make more money in getting your fast cash if you’re more busy then when you started. Take advantage of access to immediate cash and use the factors money to grow your business instead of standing by while your customers use your money to grow theirs!
If you have additional questions that should be added to the checklist for factor financing, add them in the comment section for readers to review. Thank you.
Two ways to Factor Finance your outstanding accounts receivable invoices for cash! Get an injection of cash for your business that trapped in your accounts receivables. Funding in as little as 24 hours! www.factorbid.com
*Recourse Factoring Agreement
*Non-Recourse Factoring Agreement
Factoring benefits your business by providing immediate cash flow on your accounts receivable invoices. You’ll have the cash on hand to grow your business, cover daily expenses and even invest in additional supplies, employees and opportunities that present themselves.
Factors also add their assistance with back office bookkeeping help. Factor finance companies collect payments on your outstanding receivables from your customers. Having more cash on hand plus a factor that handles collections provides you the time and money to do what you do best, work hard for your business!
Let’s discuss your two types of factoring; recourse and non-recourse factor financing.
Non-recourse factoring is appealing from a risk management perspective. It lowers your company liability.
With non-recourse agreements, the factor accepts more of the risk of non-payment by your customers that don’t pay.
Non-recourse factoring is usually more expensive than recourse factoring. Non-recourse factoring is also limited to debtors (your customers) invoices that are most likely to pay. If a debtor has poor payment history and credit rating, a factor will usually not assume the risk of non-recourse factoring.
Non-recourse factoring doesn’t always protect your company from all risk involved from non-payment by a debtor. Some factor finance companies only offer non-recourse in the event your debtor declares bankruptcy. But if a debtor decides to simply close their doors and disappear one day without paying, the factoring client will have to buy back that invoice from the factor finance company.
Recourse factoring is the default for most factoring agreement today. Recourse is an understanding between you and your factor finance company, that you must buy back receivables that the factor is not able to collect on.
Recourse factoring is typically less expensive. Less risk for the factor finance company means a lower rate for your business when selling your invoices for immediate cash.
As the client, you’ll have to cover the cost of any invoices (bad debt) of your customer that decided not to pay.
Whichever type of factoring you decide to obtain through your factor finance company, make sure you’re getting a few offers from different factors so you get the best deal. Every factor is different and every business has different types of customers. You may work with big companies that have long business standing in the community and are seen as low risk, which means your rate and terms may be different from a business working with a newer more high risk company with less long-standing business history to examine.
By visiting www.factor.bid – you’ll get a few offers from competing factors that specialize in your specific industry. When factors know they’re competing for your business at the exact same time, you’ll get their very best deal!
Start your factoring experience the easy way, by using factor bid, where we match you with the top factor finance companies that are eager to earn your business and provide you with competitive offers to prove it!
We’re new to factoring (invoice financing) our business is growing quickly and we need more capital to hire more employees and pay our weekly expenditures. What do we need to know, day 1?
How Do I Find The Best Factor?
That’s an easy one. Companies that want the best deal use Factor bid. At Factor bid, factors compete to buy your accounts receivable invoices, so you get the best deal when factoring.
What Do You Ask
Scenario: You have an open accounts receivable invoice on your desk. You want to get cash for that invoice now instead of waiting the 30, 60, or even 90 days. You heard about factoring, but know you are not informed enough to make sure you are getting the best deal. Maybe you ARE informed enough, tried to factor, and did not get the best deal. Ta-Da: THAT IS WHY FACTOR BID WAS CREATED!
In this blog, let’s go over some key terms you will hear and what questions you should ask when choosing a factor that is right for your company.
Keep in mind that factoring your open accounts receivable invoices for immediate cash is much different that going to a bank for a loan. Factoring is NOT a loan, you won’t be dealing with a bank. As there are many different types of business financing, so there are many different factors financiers that serve a wide variety of needs with a wide variety of terms. Not to worry, factor bid has you covered. We make it easy to find the best factor for your business needs. Our database of factor finance companies is the best in the world. Our software matches your business with the top factor finance companies in your specific industry, so you get the best offers and the factors with the most experience and knowledge in servicing your industry.
Key Terms To Watch For
Accounts Receivable Invoice (A/R): An invoice provided to a client stating that goods and/or services have been provided and payment is to be made in a particular time frame. In the case of factoring, the accounts receivable invoice is also an asset that can be leveraged/sold for money. A/R is found on the balance sheet and is an asset because it is to be paid within 90 days or less.
Advance: The money that your company receives when your invoice is purchased by a factor. The amount advanced is usually a percentage of the face value of the accounts receivable invoice.
Advance rate: The percentage or amount of the accounts receivable invoice that will be advanced/paid.
Concentration: The percentage in which a factor will fund a single customer you have.
Confidential factoring: Your customer is not informed that you are factoring their account / invoices.
Credit limit: This financial limit is placed on your customers and is based on their credit rating.
Debtor: The person or entity that owes payment on the open accounts receivable invoice, usually referred to as (your customer).
Factoring: A Business that sells their accounts receivable invoices to a third party (called a factor) at a discount of the gross amount of the invoice face value; for immediate cash.
Factoring charge: A charge for taking over the administration, collection, and processing of the accounts receivable invoices, usually by your factor finance partner.
Factor fee: The fee a factor charges in order to finance your accounts receivable invoices.
Factor financier: The financial entity who purchases accounts receivable invoices at a discounted rate.
Funding limit: The maximum amount of funding a factor finance company will pay you.
Funding period: This is the period in time where the factor purchased the invoice and when your customer pays in full.
Non-recourse: This is the sale of the asset (outstanding accounts receivable invoice). The factor assumes ownership of the receivable and the risk of collecting the debt.
Notice of Assignment: A notice that your customer (the debtor) receives stating that their invoice has been factored. This notice also provides the customer with the new payment address and/or process. “Chances are, if your customers pays slow, their already being factored by their other vendors, thus eliminating any fuss over you wanting to factor their slow-paying invoices.”
Reserve: A certain amount of funds that is set aside by the factor to cover bad debt expenses and payment shortages. (ie., kind of like an escrow account)
Seller (Transferor): The one who owns the open accounts receivable invoice, but relinquishes ownership by selling it to a Factor.
With recourse: The factor has the right to collect unpaid payments from the seller, in the event the debtor (your customers) does not make good on the payment / invoice.
Questions To Ask When Choosing A Factor That Best Fits Your Business
Do you provide non-recourse factoring? If so, what is the difference in the rate?
What is the length of the contract? Factors will typically want to partner with you for 12-24 months to have the opportunity to purchase more open accounts receivable invoices. This will also help them understand how your business operates so they can help you increase your profits and become more successful.
How fast can I expect to receive payment?
Can my payments be deposited into my checking account, same or next day?
What is your discount rate?
What is your fee for late charges?
Do you help us collect payment from late/no pay debtors? How?
Can I stop factoring any time I want?
Is there a penalty to stop factoring?
What if I want to factor with another company? Is that OK?
If I refer a friend’s business, do I receive a referral reward?
We’re sure you’ll have other important questions that specifically affect your business. Here is a good tip, write down all your questions (preferably in an email) and send them to each factor that provides you a competitive offers; after submitting your invoices using factor bid on your desktop or download Factor App for your smartphone.
“Keep it simple, stupid” the KISS principal when it comes to your money! Don’t wait 30,45 or even 60 days to get paid for your outstanding accounts receivable invoices, get paid as soon as today!
When it comes to factoring (invoice finance), the sky’s the limit concerning all the benefits. Mainly due to the question, “What are you going to do with all YOUR money you now have access to?” Let’s clarify, it’s your money and always was. You already completed the job. Your client has the bill/invoice. You are just waiting for the payment that you already earned. This is important to wrap your head around. When you factor finance, you are NOT applying for a loan! You are gaining access to the cash that is trapped in your accounts receivable invoices and is owed to you for a job well done.
I’m ready to get a few offers for my invoice from competing factor finance companies – Let’s Start!
What would your business look like if you were paid the SAME DAY for the products/services you provide? What would it look like if you had the money in your checking account the next day, instead of having to wait 30 plus days? How many people could you hire? How many new trucks, supplies or necessary equipment could you buy to help grow your business faster? What if you were not biting your nails on a Thursday ANYMORE when thinking about how to pay your employee’s on Friday? Now, I am just talking about one invoice. What if you are processing/billing 10, 20, or 30+ invoices a month…and waiting for the checks to arrive in the mail?
Ask yourself: “How much MONEY is locked up in someone’s Accounts Payable (A/P) that you’re not accessing to pay your own bills?” When you signed up to own your own business and create an amazing product/service, you didn’t intend on being the bank or finance company of all your customers, did you? Dream the dream. What would your business look like if you were paid same day? What would that be worth to you?
Apart from all the benefits above that specifically apply to your dreams, line of business, and how you want to grow your company, factoring your open accounts receivable invoices also does the following:
Eliminates bad debt – As you will have no more bad debt, because you – smarty pants- will ALWAYS get paid for a job well done, you can eliminate this expense from showing its ugly head on your income statement. That’s awesome!
When you partner with a factor finance, you are partnering with an experienced company who now helps you manage your accounts receivable invoices. No more collections process for you! No more expensive ‘collections outsourcing’ or lawyer retainer fees to deal with.
The sky’s the limit! You now have access to unlimited capital. The more you grow, the more financing becomes available. You love the factors and they love you.
As factoring is NOT a loan, you will not be incurring any debt. That’s right! No debt. This frees up your balance sheet and keeps it healthy for when you want to obtain other types of financing or sell your company.
Factors know that time and money go hand in hand. They want to get you money fast and make the process as seamless as possible.
So, what are you waiting for? Whether you have $5,000 or $120,000 of open accounts receivable invoices sitting on your desk, factoring can provide you the means to run your business like never before. Simply, go to factor.bid to begin a FREE and NO OBLIGATION journey into the world of factor financing. Once you upload an open invoice, you will have up to three factor financiers call you, eager to earn your business. Factor bid gets you competitive offers from the top factors in your industry that are looking to buy your open invoices today! Sit back and let the offers come in. It’s probably the easiest and best decision you’ll make today!
GO MOBILE – Factor App in invoice finance on your Smartphone!
I hear from my friend that Factoring (cash for invoices) doesn’t use my credit score?
Factoring your open accounts receivable invoices can seem like a no brainer. Who doesn’t want instant access to cash they have already worked for and earned? For those of you who are a bit scared that you are going to walk into another situation where your credit rating is going to be scrutinized or that by factoring you are adding more debt to your books — HAVE NO FEAR! On the contrary, if that is what’s holding you back REJOICE! Let me introduce you to the wonderful world of factor financing.
Factoring does not impact your personal or business credit. In fact, factoring does not require you to have any credit history at all. Factoring has everything to do with the people and companies you do business with. You see, when a factor finance company partners with you and purchases your open accounts receivable invoices, their terms are based on the creditworthiness of YOUR CUSTOMER. The Factor will also help you realize if businesses are high or low risk, good or bad for your business.
Here comes the “infomercial” pitch: But WAIT there’s more!
That’s right! If you factor within the next 24 hours, you can:
Restore or INCREASE YOUR CREDIT RATING
Spend less time in the office
Grow your business
How can factoring restore and/or increase your company’s credit rating? Easily. The key to having a great credit score is paying your bills on time and not carrying too much debt. As a business, we understand the challenges of waiting too long for customers to pay. You need cash to cover day-to-day business expenses, pay employees and more. Less cash on hand means an increase in late payments from your business which can become a day-to-day nightmare for your company and even personal credit score. Once your late on a few bills and even worse behind on payments every week, it ends up costing you a lot more to bail yourself out.
Having a good credit rating is important for your business. Yes, factoring your open accounts receivable invoices allows you to have access to unlimited cash flow (limited only by how much business you complete). However, there might be a time when you need to borrow a larger sum of money as you grow and expand. For example – In the case of a start-up, it’s usually the personal credit of the business owner themselves that is on the line when trying to get a traditional bank loan. But what if the personal credit of the business owner is just okay, and doesn’t meet the requirements of the local lending bank? You don’t get the loan, that’s what happens. So if you’re looking to get paid from assets you’re business already owns, like your accounts receivable invoices then give factoring a try, you’ll be glad you did and you’ll also be working toward establishing the creditworthiness of your business.
At Factor Bid, we thought of the hard working business owner who needs to cover daily expenses and dreams of growing their company to the biggest and best. Yes, we are awesome at what we do. How awesome are we:
We personally know and work with quality factors within every industry
We take two minutes of your time instead of hours spent traditionally in researching factor finance companies
At Factor bid -factors compete for the opportunity to buy your open invoices, so you get the best possible deal when factoring your accounts receivable invoices.
Don’t wait 30,45 or 90 days, submit your invoice at factor bid and get paid as soon as today for your outstanding invoices.
When factors know their competing for your business at the same time, they’re more likely to give you their very best offer right out of the gate in order to win your business, which means a better rate, better terms and more money in your pocket!
Factoring on the GO!
Download Factor App – the only factor financing app that gets you the most money for your A/R invoices.
Collecting on unpaid invoices can be one of the most tedious tasks in running a business. If you’ve got open accounts receivable invoices and slow-paying customers, you’re probably faced with a cash crunch within your organization.
There is a sense of accomplishment and pride when you invoice a customer. The feeling that you’ve done your job and delivered on what you promised. But how do you add a sense of urgency to your invoice collection process, and get customers to pay on-time or even a little early?
Collections should be seen as one of the most important functions in your business, second only to client services. Spending time in collecting open invoices brings in much needed cash your business uses to pay bills, cover payroll, hire more employees and stay competitive in your industry. Without a good collection plan in place, outstanding invoices will pile up and may even force your company out of business.
So what’s the best way to collect on those slow pay or open invoices? First off we need to start with a collection system. A system that helps with vetting potential new customers and even existing customers you’re working with today!
DESIGN & IMPLEMENT A SMART COLLECTION SYSTEM
Step 1 -Avoid bad paying clients by checking their credit and payment history. Before agreeing to offer a net 30 payment plan to a client, check their recent and previous payment activity.
Commercial credit reports are inexpensive and can be purchased quickly from companies such as Experian, Dun & Bradstreet and Ansonia. These reporting companies offer assistance and can even help with establishing a suggested credit line.
Once you’ve established they are credit worthy, establish a good follow-up process to make sure you’re always in front of any potential future issues.
Step 2 -Use the correct contracts for your business. Every sale you make should be governed by contract. Contracts should be designed by an attorney and should outline deliverables, time frames, how any dispute may be handled and payment terms and expectations.
You need to have it writing! The contract must outline when payment is due and what expectations are required to earn such payment. If you’re offering terms and you don’t have your agreement in writing, you’ll have little recourse if legal action is required.
Step 3 -Use a delivery acceptance letter for services rendered. The letter should state the work has been completed and/or products have been delivered to the client’s satisfaction! The client should sign the acceptance letter to verify their satisfied with your work.
An acceptance letter will help you identify any potential issues between you and you client at time of delivery. If your clients does not want to sign the acceptance letter, then you have a big problem. It’s better to know there is a problem immediately, in hopes that you can fix the problem right away and get back to business as usual in the days ahead.
The acceptance letter may also come in handy at a later date, in the event you have to send your customer to collections for non-payment. Remember the objective to having an acceptance letter, is to prevent collection problems from happening in the first place.
Step 4 -Send the Invoice and job paperwork promptly. As soon as the work is completed, send an invoice and any related paperwork that is needed to supports the invoice. For example the acceptance letter would be a smart supporting document that you could include when sending the invoice for payment.
Follow the payment proceedings outlined in the agreed contract. If your client requires open invoices to be sent to their accounts payable department, with a copy to the owner or project manager (or someone else), do so. Not following the payment clause listed in the contract my cause payment delays.
Step 5 -Follow up! It’s always a good idea to follow up with clients on a regular basis. On the same day you’ve sent the invoice out for payment, follow up to make sure the client has received your request along with all of the necessary documentation they need to close and pay the invoice.
LATE PAY OR PAST DUE INVOICES -Once an invoice is 5 days past due, pick up the telephone and call the client to see what the issue is. Follow up the call with an email about what you and the client talked about on the phone and ask for their confirmation in the email. Make sure you’re both on the same page and have come to a conclusion, so you can get paid.
If there was no issue and the client is simply behind, make sure and secure a new payment date. Lock it in and send that new payment date in the follow up email as well.
If the payment date is missed for a second time, wait a few days and repeat the above process. If the client misses multiple payment dates, then you may need to submit to collections.
It’s important that you always remain professional and treat your clients with respect. You will have better luck collecting slow-paying invoices by remaining professional and keeping your composure throughout.
KNOW WHEN TO USE OUTSIDE HELP -There is always a chance some clients will not pay. In this case you may need to hire an attorney or start working with a collections agency. These methods can be expensive and take time away from running your current business operations. Dealing with past due and unpaid invoices as well as collection issues distract you from focusing on business growth. You may need a professional third party to help handle it with you and their best interests in mind.
PROFESSIONAL THIRD PARTY -Factor finance companies can help in designing and implementing a smart collection system. In some cases a Factor can become an intricate part of your back office. Why would they do this you may wonder? Because when a Factor is providing you up-front cash flow for your open invoices, they want to make sure the invoice is paid on time and no additional collections are needed.
Factors can help with quick credit checks, providing payment history and a good risk assessment of the customer. A Factors recommendations may even prevent you from having bad customers, and allow you to focus on growing your business as quickly as possible. It’s always nice to have a reserve of cash you can tap at a moments notice.
Factors have been collecting payment on invoices for years and know what to look for in customers that pay slow or have some type of issue in making payment. There experience may lend some solutions that you may not have thought of.
So if you’re looking for some back end office assistance in collecting your accounts receivable invoices and need more cash flow to grow your business, cover expenditures and make payroll; use Factor.bid to match your business with the right factoring company today.
Factor.bid -enables you to shop your open invoices. Factors compete for the opportunity to earn your business and buy your accounts receivable invoices for immediate cash.
Factor.bid is free to use and is an essential part of deciding which Factor is right for your business. Which factor can provide the correct financing for the industry that your business services. Not all Factors are the same. Make sure you’re getting competitive bids to buy your invoices.
Check out www.Factor.bid for back end office support when designing and implementing your accounts receivable collection system and get paid for your open invoices as soon as today.