Five Flexible, Convenient And Fast Benefits For Auto Mechanics From Invoice FactoringAuto mechanics have to face challenges on a day to day basis, and weíre not just talking about repairing and fixing cars. Sufficient capital is necessary to maintain a well-managed cash flow of local car repair shops, or B2B companies. Fortunately, small businesses like an auto mechanics business, can benefit from invoice factoring. While it is flexible, convenient, and fast, invoice factoring is far from a loan which can be obtained from a bank or credit union. Invoice factoring is a financial management tool that enables a small business owner to access money immediately.
Insufficient Cash Flow Spells Trouble
Money can be a challenge because almost always, auto mechanics get it in the form of outstanding invoices from slow-paying clients. This kind of situation for a small business, meanwhile, means that the cash flow is disrupted. Vehicle mechanics, who are usually small business owners, realize that waiting for their customers to pay after the issuance of an invoice means waiting between 30 and 90 days for them to do so.
This condition results in numerous opportunities lost for added revenue due to lack of funds as working capital. The lack of working capital restricts small business owners from expanding their market, purchasing new equipment, and meeting payroll demands. Waiting for payments from customers who have been issued invoices upsetís a small businessí inventory, staffing or equipment necessary to increase production, fulfill orders and generate more sales.
The Benefits of Invoice Factoring
Through invoice factoring, auto mechanics that have their own small business are able to fill in the gap between the last and next job orders. Invoice factoring gives the small business owner the benefits of:
- 1. Adding to the inventory or providing new services or products to customers.
- 2. Gaining competitive edge over competitors in providing more flexible terms to customers.
- 3. Giving the small business the resources to market services or products extensively to potential or new customers.
- 4. Providing the ability to fulfill the requirements of larger orders or service more accounts.
- 5. Ensure and improve cash flow to meet operational expenses and other financial obligations adequately and in a timely manner.
It isnít enough, however, to engage the services of a factoring company you hardly know anything about. Trustworthiness is the primary element in choosing a factoring company, followed by reliability and professional. With NeeBo Capital, a small business owner is assured that his chosen factoring company will work for his businessí best interests. NeeBo Capital offers spot factoring, traditional factoring, and working capital for auto body shop owners.
Donít, take advantage of low factoring rates in the Auto Mechanic industry Today!
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General Articles about Accounts Receivable Financing and Factoring:
» 08/01/2012 Debt Financing or Off Balance Sheet Financing?
» 09/15/2011 What to know when selecting a Factoring Company