When a company offers customers a credit term, they agree to provide the goods or services today in exchange for payment in the future. Because the company agrees to postpone the payment, they receive a premium, known as interest, from the customer at a future date. This process allows businesses to keep their prices competitive while offering customers a convenient way to pay for their purchases over time. Unfortunately, situations arise that prevent customers from paying for their goods and services on time. By missing payments, they prevent a company from accessing the cash from the sale to produce more goods and services, putting them in a bad financial position. By selling accounts receivables to an invoice factoring company, businesses can get the cash they are owed quickly and conveniently without the need to hassle customers for cash. Most small to midsized businesses don’t have an established collections department, and the best factoring companies will provide the collection service at no cost.
Why Sell Accounts Receivable?
When it comes to raising the cash you need for your company, do you want access to funds in a week or a month? Selling receivables is a must faster method for getting the financing your company needs. Contact us today at 1-800-405-6035 to speak with one of our factoring specialists or get started with your risk free quote.