Wednesday 20 March 2013

Maintaining Customer Relationship in Invoice Factoring Services

Certain financial solutions allow you to beef up your cash flow. Without getting into a debt trap, it is possible through accounts receivable factoring to get access to more than 80 per cent of your unused invoices. You will have instant cash to reinvest in your business, which implies you can spend on the payrolls, supplies and services and serve your clients. This would also help you to negotiate better and capitalize on available offers.

These invoice-factoring services are tailor made for small and medium enterprises (SMEs). Essentially, the factors would be collecting the payments directly from your customers. Reputed factors ensure the close relationship of your relationship with your clients. They handle your clients in an evidently professional way. Yet, in case there is a concern, you can take a few precautionary steps.

You can get a confirmation about the money collection method by the factor in its invoice factoring services. Then, a relatively new concept is the single invoice finance in which you use your accounts receivable for only a couple of occasions. In any case, this service is a short-term solution. Finally, now when there is an improvement in the cash flow, you can as well put a system in place to take care of your valued customers.

Thursday 7 March 2013

Fees and Other Costs of Invoice Factoring Service

Most business owners can have access to quick cash through invoice factoring service. In this service, they sell their accounts receivable or the invoices to a factor at a discount. The factor provides advance cash, approximately 80-90% of the purchase price of the invoices with a fee. Its merits are beyond a doubt. However, it is essential to know the fees and other costs to get the best out of the service.

Invoice factoring service, one of the perfect financing solutions in Vancouver, is available with some fees. Along with the balance of paying the purchase price and other charges, it includes the fees of the service, upon collection. So, how much business owners have to pay for this service?

The factoring service fee mainly depends on four factors:
1. Workload
2. Number of debtors
3. Turnover (the higher it is, the lower is the service fee)
4. Time period

Then, there are some fees that business owners should examine closely, while opting for this financing solutions in Vancouver:
1. Discounting fee, which depends on the borrowed amount; and it is the product of the sum of base rate and margin and the average borrowing;
2. Minimum service fee, which is usually mentioned in the terms and conditions of the service;
3. Audit fee, which some lenders include in their charge for audit; and
4. Arrangement fee, which is for setting up the facility; and so on.

For more details please visit:- Financing Solutions Vancouver