By Kevin Stapleton
With the economy on the rise and June retail numbers up, companies are in a prime position to bite off more than they can chew. While it’s exciting when companies are being asked by their customers to provide more and more shipments of goods, it can also be overwhelming.
Factoring is a good financing option when a company experiences a sudden uptick in its business and is often used by companies who have seasonal ebbs and flows in their business or simply need to fulfill a sudden large order.
Benefits of factoring include:
- Reduce a company’s overhead and expenses by outsourcing the credit and collections departments.
- Improve a company’s working capital / cash flow by converting accounts receivable and inventory into cash
- Eliminate or greatly reduce customer bad debts
- Increase the flow of information to management through daily / monthly on-line reporting