Two of the focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. A major component of any business is properly managing its receivables. Having the systems in place to take orders can be the difference between your business succeeding or failing. The following contributed post is entitled, Factoring Receivables Gives Small Players The Chance to Compete.
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Have you ever had to turn down an order because you don’t have the resources to fulfil it? You are not alone. It is a tough old world out there for small businesses. You always feel like you have a mountain to climb because you don’t have the luxury of an unlimited budget as the large companies in your industry do.
This can make it feel impossible to compete. You feel as if you are constantly remaining stagnate and never expanding. Does this sound familiar? Well, it doesn’t have to apply to you anymore. Factoring receivables gives all businesses the platform to succeed and compete against the big players in their industry.
Whenever a customer orders a product or a service from your company you can use a factoring receivables service to get the cash straight away. This ensures you don’t have to wait around for weeks and weeks for the customer to pay their order. The service provider will take a small percentage for releasing the funds to you, and you will benefit from instant cash as soon as a purchase is made. This ensures that you never have to turn down an order again!
There is nothing worse than having to put your business on hold because a client hasn’t paid what they owe you. A lot of the time this client is stalling because they are waiting for someone to pay them too. It is a never-ending cycle. Yet you get the opportunity to break out of this by using factoring receivables because you get your cash straight away no matter what.
Don’t underestimate how much of a massive platform this can be for your company. Establishing yourself and growing as a small business is extremely difficult. You make one order and then you often have to wait to receive the cash before you can start on the next. You don’t have the capital free to have the luxury of funding the manufacturing of a product with supplies from companies like C and C EDM, Inc. or the delivery of a service through using your business’s float. With factoring receivables, you eliminate this problem as you will always have the capital there. This allows you to take big orders. And as you know; once the large orders start following you really begin to gain momentum and establish yourself as a force to be reckoned with.
And don’t make the mistake many others do and try to carry the workload by yourself! There are far too many business owners out there who are attempting to do an 80 hour work week so that they can complete orders – as they evidently cannot afford to pay their employees if they are waiting on funds. You don’t need us to tell you about how damaging this is to your health!
Now is the time to eliminate the panic. Stop worrying about when and if orders will be paid. Stop trying to take on the job of seven other people. And start becoming a big player in your industry!