Cash Flow Benefits of Invoice Factoring

cashflwA 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.

A way to increase sales & profits
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.

A way to increase business working capital
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.