Thinking about accounts receivable financing?  We have compiled 5 frequently asked questions to help in the decision making process.

1.              How does invoice factoring benefit my business?

To coin a familiar phrase in business, ‘it’s all about cash flow’, and if your particular business is generating a regular amount of accounts receivables, a good invoice factoring company specializing in AR funding, can help increase cash flow while reducing credit and collections headaches. If your capital is available quickly, your cash flow is increased and you have access to immediate working capital.

Have you always considered invoice factoring to be the last resort answer for cash flow problems?  A form of financing you would not consider unless you were about to fail? 

Accounts receivable factoring is an excellent funding source for large businesses wanting to receive quick payment on outstanding invoices, as well as new and rapidly growing businesses that are organized and understand their sales cycle.

It pays to be organized.  A well-run company seeking accounts receivable funding will be far more successful obtaining financing than those companies looking for factoring as a last resort answer to cash flow issues. Certain fundamental elements need to be in place, such as:

Federal spending is healthy which means excellent opportunities for government contractors.

So is the United States Government one of your best customers? If not, it may be time to consider the benefits.

Getting your foot in the door may seem daunting, but once you have made the decision to go after contracts with the U.S. Government, the procedure is well documented, and relatively simple to follow. Check out our earlier blog covering tips on the bid process, and useful links to help explain the process. 

The simple answer is yes!

Efficiency is the driving force behind success. Our society has come to expect ‘instant’ results. We order products from the Internet, and companies like Zappo’s have set the bar high, and lead us to expect delivery of items we order the very next day. We feel disappointed if we have to wait too long to receive items we sometimes didn’t even know we wanted!

Keeping the production lines moving

October is upon us, and many manufacturing companies will be beginning to ramp up production to meet the fast approaching seasonal demand.

Careful strategic planning is vital during this period, and failure to plan accordingly could have a serious negative impact on business.

Social media marketing has helped spread the word about what is popular for the upcoming holiday season, from the best toys, to the most fashionable winter clothing, and the ‘must have’ gifts. Unexpected publicity can put a strain on manufacturers who are not ready to meet the increase in demand. Production must increase, but where will the money come from?

Increasing Efficiencies to Generate Financing
for Manufacturing Companies

Are you steadily growing, but constantly creeping close to using all your available lines of credit? Do you often go back to your private sources of finance to help in a cash crisis?

Imagine this scenario:

A product manufacturer has one successful production facility, supplying several regional warehouse/distribution centers. The company is set in a profitable geographic region. Business is steadily growing and it’s time to make some changes to optimize profits. You know you are ready to grow, but your manufacturing financing comes from private equity, or traditional bank loans.

Helping Manufacturing Companies Grow

As a manufacturer, poor cash flow management can really become an issue at two critical times: 

• As you start out

• As you start to grow

In both scenarios, you are more than likely going to take on long, and short-term debt, to finance your fixed and working capital requirements. Financing for manufacturing companies comes in many forms, let’s look at the reasons manufacturing financing is necessary.