Cash Flow Benefits of Invoice
Factoring
A key advantage of BTB’s factoring services is
its ability to design programs that meets the needs of a
particular company. Client-specific cash flow management
programs are created by breaking down and reassembling BTB's
basic services to satisfy the company's individual accounts
receivable management requirements.
Firms that factor receivables obtain many
benefits. For example, companies working with BTB can gain
control over accounts receivable management and cash flow
management. Cash flow management is achieved because payment of
invoices purchased by BTB is contractually guaranteed and made
on a scheduled basis. Thus, uncertainty regarding cash flow is
removed, and the company can sell its products more
aggressively, since funds will be available when new orders
must be filled.
Business Invoice factoring also gives a company the options
of converting account receivables into cash ahead of due dates.
Thus, funds are available for labor and materials prior to the
completion of a contract, and the firm can take advantage of
cash discounts and special material purchases. And, as a
financing alternative, commercial factoring is competitive with
bank lending rates. In addition, expenses related to credit and
collections become known variables. Since BTB's factoring fee
is based on the company's sales volume, expenses can therefore
be easily projected.
Is your company new and without a credit history? Are you
undercapitalized, or a business with high seasonal demands?
Have you decided to purchase the interest of a partner, add a
new product line or simply expand existing operations? If the
answer is yes to any of these questions, invoice factoring may
be the answer.
Fortunately, banks are not the only source of working
capital. Money can be obtained quickly through account
receivable factoring where an ongoing line of capital can
easily be established.
Factoring invoices is a way to increase sales. Most
companies cannot afford to carry many customers who pay their
invoices much beyond thirty days. Quite often, companies are
forced to turn down some of their more profitable orders
because of slow-paying customers. BTB can extend credit to
these slower-paying accounts, thereby giving you increased
sales.
Factoring accounts receivable also goes hand in hand with
your financial planning, giving you some predictability in your
month-to-month financial situation.
In today's highly competitive economic environment, businesses
are under constant pressure to tighten operational controls in
order to maintain profitability. In many cases, small companies
must devote more time to credit and cash flow concerns which
shifts attention away from the principal objectives of
increasing productivity, sales and marketing efforts.
Cash tied up in accounts receivables can be a permanent
problem for smaller companies. As your business grows,
additional capital is frozen into account receivables. Most
companies are growth-oriented, but sometimes so
undercapitalized that a strain is placed on the entire firm.
BTB is dedicated to helping you to free up your capital and use
it in more profitable areas. You are now able to take advantage
of profitable opportunities such as discounts and special
rates.
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