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

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