Wednesday 22 May 2013

5 Questions to Ask about Invoice Factoring Services

Invoice factoring services are selling accounts receivable at a discount to receive fast cash. These are effective when you cannot keep up with your sales growth. However, you need to ask yourself five questions to make the most of this financing solution.

1. How is my client paying?
Invoice factoring services are tailor made for you if you have customers with a good credit record. Even with a reliable payment history, they might not be paying when you need the cash.

2. Have my clients taken the order?
A factoring company pays if your business has ongoing transactions. Therefore, you need to complete those orders before approaching the company.

3. How frequently do my clients pay?
A period from one to three months is the standard that many factoring companies expect your clients to pay. Otherwise, they will find it difficult to factor your invoices.
  
4. How am I managing the receivables?
Accounts receivable financing will work only when there is a system in place to manage your receivables. The process should include steps like how you make priorities and communicate with your clients.

5. Do I have any financial concerns?
You need not have excellent credit for factoring, yet past issues like tax problem sand debt records could be a deal breaker.

A bank loan might not be a perfect solution when a cash flow shortage hits hard. Account receivable financing can come handy on those occasions.

Thursday 16 May 2013

Invoice Finance: How You Should Grow Without Worrying

One of the simplest ways to get rid of cash-crunch position is to access the capital that is tied in your unused accounts receivable or invoices. More than getting quick cash, it offers several other benefits to the business owners.
 
Invoice finance allows you to focus on your core competencies, because the factor would take care of the credit control processes. As you grow with account receivable factoring, there would be more flexibility in using the capital where you need it the most. In this way, you can negotiate better with the suppliers while you save more from your business.
Pyx Financial Group
There is a reason why invoice finance works remarkably well for small businesses. One, it releases the cash flow and facilitates the growth of a business. This indicates that you have more access to the funds. Two, it would result in the growth of sales turnover and in the funding line as well.

The ease of service makes it even more remarkable. If the lack of cash is stalling your business, then get a quote and submit your invoices. You will be paid in as little as 48 hours. Worry no more about cash. Most factors also look into your customers’ condition rather than yours, while offering their services.

Wednesday 1 May 2013

Explore the Options for Invoice Factoring Companies

A little analysis of the several factoring companies would benefit even more, along with the quick cash solution. Business owners can start by contacting those factors, which they are sometime called, who understand their clients’ areas of business operation.

Every invoice factoring solutions may appear seemingly not different, even if companies look at the different service providers, but there are shades of differences. This is why they need to explore the options so that they get the best solution. On the other hand, the financial anxiety might compel them to take steps such as taking a loan from the bank. Yet, this is avoidable when they have so many unused account receivables.

The rule of thumb is to seek for those factors that work with certain kinds of business, be it manufacturing or information technology, for example. These factors emphasize on the size of a business. Invoice factoring would be ideal if business owners can get a factor, which follows a desirable working procedure or another, which believe in maintaining a healthy relationship with the clients and customers.
 
It would be frustrating to get the wrong factor that does not understand the needs of the clients. A little exploration should enhance the service while getting rid of untoward issues.