Factoring for Custom Embroiders to Solve Cash Flow Problems
Fashion trends come and go, but the human necessity for clothing guarantees that custom embroiders will never go out of business anytime soon. While competition from ready to wear alternatives as well as high end brands tends to be stiff, it is that inexplicable human desire to standout which would ensure that custom embroidery will always have a place in society. As such, anyone who sees the potential in this business would know better and be prepared for the accompanying expenses that come along with it. Start up or established, any company could benefit from a quick increase in capital especially during times of great need, such as when a client suddenly places a big order that could not be delivered due to lack of cash available to purchase raw material.
How Factoring Comes to Play
You cannot lose that big client just because you do not have the funds to meet their demand. Invoice factoring is the best option when you are already in possession of the client�s invoice, but would still have to wait for it to be converted into cash after weeks or even months. Of course, the products have to be manufactured right away and could not wait that long for payment. Trading your invoices for quick cash, you could take advantage of factoring agencies by acquiring their services in relation to this dilemma. The caveat would be the minimal fee that they charge, which is around 10% of the face value of the invoice, if based on industry standards.
How Custom Embroiders Benefit from Factoring
You have to pay not just the wage of your employees but the raw materials as well. In order to fulfill your client�s needs, you would have to produce what is demanded, and that demand could not be manufactured out of thin air because you would need raw materials, mostly cloth in large volumes.
If your company is just starting, you would also need to purchase the equipment necessary for the maintenance of smooth operations: sewing machines, cloth, and washing machines, to name a few. Once your business has taken off, the expenses do not stop because you still have to allot a significant amount of your budget for equipment maintenance. A loan would be the most logical thing to think of in times of great need, but invoice factoring could be the better solution if what you are after is a quick fix.
How NeeBo Capital Could Help
NOne too many custom embroiders have turned to NeeBo Capital for help when they are strapped for cash, the reason being the lower factory rates of just around 0.59% to 1.5% that the company offers, which is way lower than most other factoring agencies offer. Since credit history does not play a big role in the acquisition of extra funds, start-up companies also get to enjoy this financing tool just as long as they are already in possession of their clients� invoices.
Why Choose Us?
Rates at 0.59% - 1.5% for 30 days
Quick Link to Financial Resources:
| Purchase Order Financing | Accounts Receivable Financing | Asset Based Lending Options |
General Articles about Accounts Receivable Financing and Factoring:
» 08/01/2012 Debt Financing or Off Balance Sheet Financing?
» 11/30/2012 Utilizing Factoring as a Alternative to Traditional bank Credit
» 07/22/2012 Increase Your Business Lines Of Credit By Factoring Accounts Receivables
» 09/15/2011 What to know when selecting a Factoring Company
