Auto Windshield Installers: Factoring Companies Look At Your Clientsí Credit-Worthiness, Not YoursInsurance companies are really slow sometimes when it comes to payment for claims of small companies like Auto Windshield Installers who donít have sufficient working capital to keep their operations going while they wait. Most of these installers do not have 90 days (thatís 3 months) to wait to get paid. Their best bet is invoice factoring.
If your business is auto glass installation and you believe your cash flow needs improvement, pick up a factoring company term sheet, choose the invoices they want to be factored and complete the paperwork. The typical turnaround time is between 24 and 48 hours. In two days, instead of three months, you have a cash management tool in your hand that will give you additional capital to increase production that translates to bigger revenue and enable you to pay expenses on time.
Not on Your Financial Condition but on Your Clientís Credit-Worthiness
With no fees to be paid upfront and no requirement to sign a long term contract, obtaining the funds to augment your cash flow is easier with factoring than obtaining a line credit from the back. Best of all, the qualification for Auto Windshield Installers to be factored is not based on financial condition but on the invoice payerís credit-worthiness.
Fees for invoice factoring, as well as for advance rates, are determined by your businessís billing on a monthly basis, the average size of the invoices you issue, average number of days to fulfill payment obligations, and, as mentioned, your clientsí credit-worthiness. The fees can be between 0.59% and 1.5% of the face value of the invoice. If this value is a thousand dollars then the 1.5% fee is equivalent to $15.
Guiding You Through the Inís and Outís of Factoring
The advance is the money which the factoring company immediately pays you after your invoice is purchased. When your customer pays the invoice, the remaining balance is paid to you as well. Advance rates range between 60% and 95%. If the value of the invoice is a thousand dollars, it equals $800 due to the advance rate of 80%. The balance of $200 minus the factoring companyís fee and commission is given back to you upon your customerís payment of the invoice.
Factoring may be a simple, convenient, and readily accessible financial mediation solution to your cash flow problems but it takes a reputable company like NeeBo Capital to guide you through the inís and outís of factoring with genuine concern not only for the business you will give them but the business you are given by your own customers. NeeBo offers a wide range of services for different sectors, including that of Auto Windshield Installers, medical services, government receivables, and construction, among others.
Donít wait while your competitors factor their accounts receivable. Take advantage of low factoring rates in theAuto Windshield Installers industry Today!
Why Choose Us?
Rates at 0.59% - 1.5% for 30 days
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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