Though it is true that every business has to turn a profit in order to be financially stable, success is not always so easily defined. In fact, there are several different aspects to business success that have to be considered when analyzing the successes and shortcomings of various plans. Competing against large organizations, pleasing customers, and earning a profit are only three considerations that can be used to gauge a company’s success. Selling accounts receivable is a simple and direct manner of achieving each of these goals.
Remaining Competitive in Your Industry
Big box retail stores have a definite edge against smaller organizations in terms of buying power. Their bulk quantities can translate into a much lower price point for the consumer. Price is not always the single deciding factor when it comes to customer patronage; customers look for other qualities in the businesses they purchase from. If you are a supplier to the big box chains, you know you have a lengthy wait to getting paid. These retailers and wholesalers want to wait an entire buying and return cycle so they know what their profits are before ever paying their vendors. If you want to work with the big dogs, anticipate a wait. Waiting for payment puts a constrain on cash flow, which your business needs to remain competitive
Selling accounts receivables brings about other positive results, including:
- Freeing up your organization’s AR team from tasks associated with managing the accounts
- Providing valuable working capital for wages, inventory, advertising, and more
- Preserving lines of bank credit for other purposes
Solving Many Concerns in a Single Operation
Factoring is one of those rare solutions that manage to achieve numerous goals at once without any extra effort on your part. There are few other solutions that can please customers, streamline operations, generate revenue, and maintain your company’s financial well-being while also generating a convenient cash flow. Companies facing a shortage of working capital as well as those looking for novel ways to compete against industry peers can benefit from this dynamic program.
See for Yourself
To see just how valuable your accounts receivable actually are, simply enter some basic information into our convenient online rate form. You can see right away just how advantageous this program can be for your organization.[hs_action id=”1489″]