Factoring: A Practical Cash Flow Tool For A Cable and Construction BusinessIf you have ever had a house wired or an office constructed, then you are fully aware that the cable and construction business is highly dependent on a liquid cash flow. Any deviation or restriction from the daily operations can cause that cash flow to turn topsy-turvy, and when it does, the business is kept from meeting payroll obligations, purchasing new equipment, exploring new markets, and increasing sales.
The Freedom to Access Funds Immediately
Itís a nightmare for most businesses to have strapped finances for one reason or another. From slow-paying customers to increased prices of supplies, the business owner has to contend with these obstacles in running the company. That is where the concept of invoice factoring can prove beneficial to a business owner.
immediately without the hassle of voluminous paperwork and the stress of dealing with a long-term contract. Invoice factoring is a set of procedures that is comparatively easier to comply with than the set which banks and other traditional financial institutions have.
You Donít Want Your Business to Close, Do You?
The factoring company pays a business owner upfront Ė typically between 70% and 85% of an invoice (some factoring companies pay more, some pay less). Once the businessí customers pay up, the balance is released. The convenience of this arrangement is that you donít have to wait for your customers to pay before you have funds to utilize for your businessí needs such as payroll, materials, market expansion, and equipment and supplies.
For those in the cable and construction business, the inaccessibility to funds spells a lull in operations and therefore a delay in production and subsequent distribution of products or provision of a service. The insufficiency of working capital means a restricted cash flow, translatable to low or no investments for potential job orders or projects and a constraint on further growth of the business, which may result in delays, non-delivery or perhaps even closure of the company for good.
Choose the Right Factoring Company
Thatís why itís highly advisable to carefully select the factoring company whose services your business will engage with. While there are many factoring companies which have sprung these days, not all factoring companies are made the same. The right factoring company could not only help tide your business over during rough times, it could also help your business expand in more ways than one.
NeeBo Capital has been providing factoring services for more than 50 sectors that range from oil manufacturer, cable and construction, medical staffing, electronic toy manufacturing, law firm, chocolate manufacturing, trucking operation, rubber distributor, and satellite installation. With NeeBo Capital, there are no application, processing, and termination fees. You choose the customers you want to be factored and have only the invoices you need factored.
Donít wait while your competitors factor their accounts receivable. Take advantage of low factoring rates in the Cable & Construction 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