There's something very important to understand when you are in business. It is wonderful to grow your business with increased sales, but the most important thing is to get paid on your invoices! No matter how much you sell, if you don't collect the money, you will not be able to survive.
Business owner are so involved in selling products and services that they forget to take the time to manage their cash flow and get paid for those sales. You also need to have a plan on what it takes to collect your money. The simplest and most efficient method in improving your cash flow and handling collections is to factor your accounts receivable.
Factoring your receivables allows you to sell your receivables and get cash now instead of waiting 30 or 60 days. Of course there's a fee for using a factoring service, but you will be able to offset that fee by potential savings you can incur when negotiating discounts from your suppliers. If you have the cash available, you may be able to attain a discount for paying your vendors quickly. Your net cost of factoring can be reduced to nothing.
Regardless, a huge benefit to using a factoring company, especially DSA Factors, is that you do not have to subscribe to expensive credit rating bureaus to check out the credit worthiness of your current and potential customers. Another benefit is that you don't have to call your customers for payments. You can concentrate on calling on the customers to increase your sales, and the factoring company can do all the dirty work in collecting payments for past invoices. If the customer goes bad, and doesn't pay, the factoring company normally holds that responsibility. So besides getting the up front cash flow you need, you will also be able to have assurance that you won't get stuck with unpaid invoices.
Remember, your cash flow is not the same as your profits. You can have a profitable business, but a negative cash flow due to retaining accounts receivable. Factoring can give you the positive cash flow you need to make your business even more profitable.
Call Howard at DSA Factors at 773-248-9000 if you would like to learn more about how factoring can help your company. Or you can shoot an email to firstname.lastname@example.org.