SOBANCO BLOG

All manufacturing companies will benefit when cash flow is steady.  It often takes incentives, such as extended terms, to close solid business deals, and ensuring the prompt payment of invoices frequently requires that they offer discounts off of their standard price points.  

Nearly every business periodically experiences slow cash flow — even very successful ones.  Some of the most successful companies in the US, and around the globe, consistently use accounts receivable factoring to regulate their cash flow.  

If your business needs working capital, but it is not presently a good candidate for conventional methods of commercial financing, the financial solution that you are looking for is likely to be accounts receivable factoring.  Also called invoice factoring, this financial product can provide a business with debt free cash flow, regardless of its: assets, years in business, or credit standing.  This is because the funding criteria is primarily based upon the credit worthiness of their customers.

Without working capital every business will fail.  Cash flow enables a company’s every operation, and when cash ceases to flow — everything grinds to a halt.  Whether it is developing new business opportunities, hiring employees, or simply paying vendors and maintaining the status quo, proper cash flow management is an imperative for the realization of corporate success.

Accounts receivable factoring is a financial product that provides working capital to companies that would otherwise be unable to obtain it.  Also known as invoice factoring, this service may offer businesses the access to debt free cash flow, regardless of their assets, number of years in business, or credit standing, since the funding criteria is largely based upon the credit worthiness of their customers, rather than their own.

Accounts receivable factoring is a financial product that is readily available to most companies that need working capital.  Factoring can provide a business with debt free cash flow, regardless of: assets, years in business, or credit standing.  The funding criteria is primarily based upon the credit worthiness of their customers.

Accounts receivable factoring is a proactive alternative to conventional lending that is among the most widely used financial solutions in the world today.  Every day, the largest corporations in the US incorporate factoring to better manage their cash flow – to the tune of trillions of dollars. In Europe, factoring is probably utilized at ten times the rates found in the US.  Despite the global prevalence of this service, it is often overlooked as a source of working capital for many small to midsized companies that struggle with cash flow on a monthly basis.  This is ironic, since there is no better financial solution available than factoring to address and remedy these pressing needs.

Accounts Receivable Factoring is a specialized financial product that is specifically designed to provide a company with fast access to steady working capital, based upon the credit worthiness of their invoiced customers.  Factoring is not conventional lending.  So start-up businesses with no established credit or businesses that have been denied lines of credit, or turned down for commercial loans will often still qualify for this service. 

Software companies represent a steadily increasing segment of the modern business landscape — and their piece of the pie will continue to grow.  To give an idea how ubiquitous that coders are becoming, consider this: The Innovation Depot, a business incubator and entrepreneurial center in Birmingham, AL, hosts 45 software/IT companies under one roof.  Think about that. And while Birmingham is very likely lightyears ahead of the general public’s perception of its tech-savviness, on a national scale – it still isn’t Silicon Valley.  

If your business is keeping other businesses clean, then at some point you have likely experienced a liquidity gap.  Custodial and janitorial services are highly competitive and extremely labor intensive, by nature, and as such often face unique challenges that may seriously constrict the flow of working capital.