Wednesday 20 February 2013

The Secrets of Invoice Factoring Service

The survival of your business depends on continued cash flow. How would you maintain the flow when you cannot meet your operational expenses? Worse, what if the accounts payable bogs you down, your customers are slow and there are delays in accounts receivable?

Invoice factoring service can help you beyond your expectation. You sell your accounts receivable to a factor and get cash in less than 24 hours. You would receive nearly 80 per cent to 90 per cent of your invoice’s value. You would not even get into debt because this is clearly not a loan. It is one of the most effective financing solutions in Vancouver. Invoice factoring service can help grow your business while allowing making savings that can easily cover the affordable costs and fees of the service.
  
This service does not have anything to do with your credit record. Rather, the factor would check the credit worthiness of your customers. Then, you can negotiate more, improve your credit rating and raise more cash for further investment, while managing your payroll systems and taxes efficiently. Besides, you can go for this factoring solution, only depending on your requirement. There is no restriction nor is it a long-term solution. In short, you get what you pay for!

Monday 11 February 2013

Take control of your Cash Flows

An uninterrupted cash flow is essential for the success of small businesses, although their working capital requirements are lower, but carry a greater significance. As these entities don’t have the cushion of a strong cash backup, any delay in payments can play havoc with their day to dayoperating capacities.

There is one ideal solution for these recurring cash flow issues. The owners can sell their invoices at a small discount to a factor, and receive immediate cash. They can get this cash in as little as 24 hours, with no long-term contracts.

Invoice factoring is a financial tool that enables business owners to capitalize on their outstanding accounts receivables. Therefore, sometimes this service is also called accounts receivable factoring. This financing technique is even more beneficial for small business owners, if they have no time to track the unpaid invoices.

Accounts receivable factoring is a win-win proposition for both business owners as well as their clients. It is similar to invoice outsourcing, regarding the processing and collection aspects. However, in this the business owners get the benefit of receiving the advance cash within a couple of days, at the most. Simultaneously, this system also allows their customers, up to 90 days, to pay their dues.

Factoring services promote goodwill between both parties, allowing them sufficient time to meet their part of the bargain, and ways to deal with urgent cash issues. This, in turn, harmonizes their long-term relationship, and leads to greater customer engagement, which is synonymous to good business.
 
In this context, finding a reliable invoice factoring service provider is crucial for small businesses. Long experience and impeccable credentials are the two elements that prove the credibility of a factor. Besides, it should not charge a high factoring fee. With a reliable factor, small businesses can gain a lot from their businesses, and achieve high growth rate in the long-term.

For more information please visit:- Accounts Receivable Factoring