Take Advantage of Your Biggest Asset With Accounts Receivable Factoring (Part 1)
Take a good look at your detailed financial analysis and you may be in for a surprise.
Many business owners are not aware that between 40% and 70% of your company assets are tied up in your Accounts Receivable.
What if they were all of a sudden gone? Precisely, your largest asset would be gone but your liabilities would remain the same.
Accounts receivable, sometimes ignored, sometimes neglected, are now the key to successful development of business.
Money waiting to be taken unlike the goods your company sells, it no longer has to go through manufacturing processes, storage, transfer and placement with clients.
Accounts Receivable Factoring will allow you to stop waiting for you to change your sales on credit into Working Capital.
Factoring can release the sales on credit which represents an average of 80% of total sales of a company which is no minor thing, today the effective management of accounts receivable represents the difference between winning and losing profits.
Oddly enough, many companies look at Accounts Receivable Collections as a nuisance and a bother.
This task is too important to be looked upon with such little regard.
Using Accounts Receivable Factoring will not only free up your assets but will also have a Professional Accounts Receivable Management Firm handle the accounts with professionalism and diligence.
The area of credit and collection is sometimes referred to as the dump of the company, which ends everything that goes wrong in any of the other areas, if the seller is committed to something that could not comply, this will be a reason for the customer stop payment, if the area is not scheduled shipments timely shipping representative will tell the credit and collections when the contact, if the bill is badly done, the same.
Most accounting departments will look at the statistics differently than saving accounts and thereby future sales.
They typically look at accounts in terms of DSO (Days Sales Outstanding) or Bad Debt Percentages.
Often the philosophy will be to collect as much as possible regardless of how long they have been customers and disregarding any future business.
Accounts Receivable Factoring Companies are Management Companies and this is what they do every day.
This is their business and they have the expertise to handle your accounts effectively and professionally so that you can concentrate on running your business.
Many business owners are not aware that between 40% and 70% of your company assets are tied up in your Accounts Receivable.
What if they were all of a sudden gone? Precisely, your largest asset would be gone but your liabilities would remain the same.
Accounts receivable, sometimes ignored, sometimes neglected, are now the key to successful development of business.
Money waiting to be taken unlike the goods your company sells, it no longer has to go through manufacturing processes, storage, transfer and placement with clients.
Accounts Receivable Factoring will allow you to stop waiting for you to change your sales on credit into Working Capital.
Factoring can release the sales on credit which represents an average of 80% of total sales of a company which is no minor thing, today the effective management of accounts receivable represents the difference between winning and losing profits.
Oddly enough, many companies look at Accounts Receivable Collections as a nuisance and a bother.
This task is too important to be looked upon with such little regard.
Using Accounts Receivable Factoring will not only free up your assets but will also have a Professional Accounts Receivable Management Firm handle the accounts with professionalism and diligence.
The area of credit and collection is sometimes referred to as the dump of the company, which ends everything that goes wrong in any of the other areas, if the seller is committed to something that could not comply, this will be a reason for the customer stop payment, if the area is not scheduled shipments timely shipping representative will tell the credit and collections when the contact, if the bill is badly done, the same.
Most accounting departments will look at the statistics differently than saving accounts and thereby future sales.
They typically look at accounts in terms of DSO (Days Sales Outstanding) or Bad Debt Percentages.
Often the philosophy will be to collect as much as possible regardless of how long they have been customers and disregarding any future business.
Accounts Receivable Factoring Companies are Management Companies and this is what they do every day.
This is their business and they have the expertise to handle your accounts effectively and professionally so that you can concentrate on running your business.