Tips for Managing Customer Fears About Accounts Receivable Financing or "Factoring"
Many companies unjustifiably worry that
their customers will misinterpret their decision to use
Purchase Order and/or Accounts Receivable Financing as a
signal of financial instability. Deciding to use these
forms of financing is actually an indication that your
business is solid, rapidly growing, and in high demand. In
fact, in today's challenging credit markets environment,
financing through Accounts Receivable Financing is becoming the norm for many
industries.
To help allay your concerns and to educate your customers
about Purchase Order and Accounts Receivable Financing,
consider the following:
- Accounts Receivable Finance businesses work only with companies that qualify for credit.
Similar to getting a bank loan, companies are subject to due diligence before Promotional Capital agrees to
provide financing. Moreover, the ability to finance your accounts receivables is dependent on the creditworthiness of your customers, not your company.
- Invoice Financing is beneficial for both you and your customers.
Your customers probably take from 30 to 90 days (or more) to pay for your goods or services. By factoring, your customers continue to receive your services and have time to pay for them—in other words, it's business as usual. The only difference with
invoice financing is that your company benefits from having money today, in order to more readily satisfy current obligations, while still experiencing growth.
- Purchase Order Financing and Accounts Receivable
Financing is a smart business move for growing companies.
A business most often uses Purchase Order Financing and
Accounts Receivable Financing or Factoring to expand and take on larger deals, without compromising the quality of their products and/or services. By getting money sooner rather than later, your business has the resources to focus on critical success issues—sales, operations and growth—while still meeting its demand.
- You may have customers who deal with factors and are not aware of it.
Various businesses in nearly every industry factor their receivables, and therefore are already familiar with how
factoring works and why companies choose to do it.
Accounts Receivable Financing/Factoring is one of the oldest methods of providing working capital to help businesses solve their cash flow needs. It's also a part of your everyday life—every time you use a credit card, you're engaged in the process of factoring.
Educating your customers about why you decided to use
Purchase Order and Accounts Receivable Financing should
eliminate many of their concerns. You should also know that
Promotional Capital is always available to help explain your
new financing program.
For too long, this type of financing was only available to
huge corporations. Now Promotional Capital provides Purchase
Order and Accounts Receivable Financing services to companies
like yours, so you can enjoy both the recognition and the
reality of being a stable, growing, profitable business.
Ready resolve your working capital issues?
Apply today for promotional capital financing!
