You’ve probably heard the phrase “the speed of business” before. Yet those in the business world know that the comparative operational speeds between companies are like snowflakes: no two are exactly alike. Yet despite the speed differences that exists between businesses, there’s no doubting the value that being able to satisfy your customers sooner can add to your company. Factoring can help add the operational speed that you’ve so desperately wanted to integrate into your own business practices.
Improved Cash Flow = Efficient Operations
How? The answer is simple: improved cash flow. For all of the added assistance you’re given through the sale of invoices or credit checks on new customers, factoring is, at its heart, a simple cash management process. Don’t let its base intentions fool you; there are layers of complexity that you need to be able to see through in order to truly understand the speed which factoring can infuse into your operations. Looking beyond the many steps involved in the actual process, you can see three distinct benefits that serve to streamline your cash flow:
- No collections: On top of the actual money owed to you in your invoices, you’re also losing out on money due to the resources expended trying to collect on outstanding balances. When your factor buys those same invoices from you, you’re able to put both those funds and your attention back into running your company.
- Eliminating debts: Factoring involves no repayment since your technically selling your invoices, not borrowing against them. This eliminates the need to dedicate business funds to debt reduction or consolidation.
- Accelerated growth: By being able to immediately put the money from your client orders back into your management and production processes, you increase your capability to bring on more clients in a shorter amount of time. The money flowing in from these new client orders contributes to an unending cycle of efficient revenue flow and service expansion.
As a business owner or executive, you should always feel the need for speed. There are tools that can help give it to you; you just need to know where to find them. To get started on the process of speeding up your professional success through factoring, simply fill out our online rate form.