Factoring accounts receivables has become a valuable option for businesses that simply cannot wait to be paid by slow paying customers, but is it really worth the cost?

Let’s take a quick look at cost. When you decide to factor, your factoring company will set a rate, which is dependent upon several things, some of which are:

• Sales volume
• Invoice size
• The creditworthiness of your customers
• The number of creditworthy customers
• The length of your contract with each customer
• The number of days the invoice is outstanding

Is your business prepared for the seasonal rush?  We are rapidly heading into the flurry of holiday demand. Careful preparation holds the key to success.

Seasonal activities mean a whole slew of extra demands on your business, whether stocking up on inventory, managing your current employees, hiring extra staff or effectively managing your cash flow, the period of extra demand holds the promise of great opportunity for your company as long as it is handled effectively.

1.                  Are you holding the right amount in inventory? 

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.

Back to Basics  

The benefits of factoring are readily available to all who are interested. The process is easy to understand and many companies both large and small, as well as start-ups, are taking advantage of factoring their invoices, not just to survive, but also to grow.  

Let’s take a moment to highlight the benefits of factoring and why it is such a valuable tool.  

• Factoring takes your accounts receivable, and turns it into available cash

• Factoring reduces your potential liabilities and therefore increases the amount of equity held in your business