So how can invoice factoring accounts receivables really help manufacturers? Why is it a great solution?
The obvious answer is that manufacturers require consistent working capital. This is not always possible with late payers, which is where factoring your invoices can eliminate the time period between invoicing and payment.
So we understand factoring, but let’s examine in more depth why this is such a viable option. There is no doubt that although many manufacturers survived the worst of the recession, times have been tough. Cash flow problems were caused by:
Customers making late payments
Suppliers wanting to be paid more quickly
Large customers extending terms of payment