When your customers decide to delay payment thus creating a longer pay cycle the last thing you want to do is make demands of them and possibility lose their business.
This problem becomes your nightmare as you struggle to make payroll. Factoring services can help, as they will turn those outstanding invoices into immediate cash and providing funding necessary to meet payroll and keep your company solvent.
If you have invoices from to creditworthy clients, then you have the collateral necessary to make payroll and create a consistent cash flow.
Unlike a bank, another benefit of factoring your invoices is it will not add debt to your bottom line; like a bank loan. Within a few days a factoring company can have you setup and quickly funded once they can confirm that your invoices are valid and the work is completed. Make sure there are no excessive charges or unnecessary set-up fees typical of most banks.
Choice an invoice factoring company that has flexible factoring options, up to date accounting of your invoices at so you can be constantly made aware and help manage those slow accounts. . We can help make sure that you meet all of your payroll obligations and avoid the pitfalls that often cause cash strapped manufacturers to go out of business before they can really get started.
While there are dozens and dozens of manufacturers in the world, there are only a few companies that actually make the items you create. That is why the manufacturing industry is so sensitive to global events that occur when specific items and prototypes are made. If a manufacturing company that makes memory chips were to completely go out of business, the effects would be felt up and down the entire technology industry. It takes a skillful business professional to navigate the financial waters of this ever changing industry. If you want to look ahead and be able to be competitive and make timely payroll on a regular basis for your industrial company, then you need to know how to withstand the constant changes in the industry.
Without cash flow, it becomes extremely difficult to make payroll and that causes a series of other problems for most companies.
Many small businesses just getting started will find it difficult to get the approval for a bank loan to make payroll needs because most banks know how volatile your industry can be. If you are a start-up, a manufacturer, or a memory company with marginal credit, you will find it extremely difficult to secure the ongoing financing it needs to meet payroll. With past due invoices piling up and the next pay period just around the corner, many small business owners panic and don’t know what to do. Fortunately for the proactive owners of manufacturing companies, there is a dependable way to make payroll based on the outstanding invoices the company has been generating all along; even if your credit has been impaired.