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Why Do So Many Manufacturing Companies Factor Their Sales Invoices?

How invoice factoring shortens the working capital cycle Any business that issues sales invoices to customers can benefit from sales invoice factoring. However, some industry sectors, such as manufacturing, have caught on to the benefits of factoring more than others. Manufacturing companies generally offer 30, 60 or 90-day credit terms, and that can be a…

An envelope with a 'past due' notice indicating a late payment.
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How to Chase Overdue Customer Accounts Without Souring the Relationship

10 Tips to Collect Late Invoices Without Upsetting Customers It would be wonderful if all customers paid their invoices on or before the due date. However, that is simply not the way things work. Any business running accounts receivable (AR) can expect some customers to pay late. Some people would never pay their bills if…

Yellow road sign with the word "debt" against a blue sky with clouds.
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11 Warning Signs A Customer Account is About to Become a Bad Debt

Take these steps to minimize your exposure Bad debts rarely occur overnight. There are usually warning signs that an accounts receivable customer is experiencing financial difficulties. If you can spot the signs of a customer struggling to pay their invoices, you can take steps to minimize your exposure. Here are eleven signs that a customer…

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How Rising Inflation Impacts a Business

However, Effects of Rising Prices can be Managed It is generally accepted that moderate inflation is good for business. For one thing, inflation usually means the economy is growing, leading to higher demand. Inflation also encourages consumers to buy now rather than later. It can also make moderate price rises easier to sell to customers….

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What to do When a Customer Won’t Pay Their Invoices

10 Ways to Improve Collections and Cash Flow If you manage accounts receivable (AR), you will be all too familiar with the usual excuses for non-payment. The check is in the mail, my manager is away on vacation, and we sent a payment to you last week; these are just a few tactics people use….

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8 Reasons Why a Budget is Essential for Business Success

The time you spend on the budget will be time and money saved. Planning is essential for business success, and one of the crucial elements of a business plan is an annual budget. However, preparing a yearly budget takes time. And, when you have plenty of other things on your plate, spending hours crunching numbers…

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How to Calculate if Invoice Factoring Will be Cost-Effective for Your Business

A quick guide to the benefits and costs of invoice factoring Invoice factoring is not a suitable financial solution for every business. Suppose your business raises only a few invoices and customers settle their accounts within 15 days, for example. In that case, the benefits you would gain from factoring invoices would be minimal. And,…