The Importance of Factoring in Fitness Equipment DevelopmentMore than in any other lifestyle business, capital infused in Fitness Equipment development needs to be available and sufficient every time, all the time. Materials used for fitness machines and gadgets cannot be of poor quality since they can endanger the lives of those using them at a gym or sports facility. Entrepreneurs who are in the fitness business therefore need funds to be on hand for bolts, nuts, screws, and whatever else that goes in the creation of fitness equipment.
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Not to mention fees for testing as well as for new product development that includes patents, certifications, etc. With all that capital, one would expect the return on investment to be timely so the business can operate continuously but the reality is, it isn’t so, and those in the fitness equipment business wait 30, and sometimes even up to 90, days for their customers to pay them. Invoices are tied up and the cash flow is disrupted, jeopardizing payroll obligations, purchase of added materials, tax payments, production of marketing collaterals, and overall business operations.
This cash flow concern can be addressed by the financial management tool called invoice factoring, a no fuss source of funds without the hassle of traditional funding like a bank loan or overdraft. The factoring company that facilitates the release of your funds needs only your basic company information and a checklist of your accounts receivables. Unlike banks or other financial and lending institutions, a factoring company’s main concern is not your financial situation but the creditworthiness of your customers. And that’s because a factoring company does the collection of the payments from your customers.
How a Factoring Company is Better Than a Bank
A factoring company is able to release the funds that your Fitness Equipment development business needs within the next 24 to 48 hours after you submit your company information and invoices. Engaging the service of a factoring company gives you these benefits aside from those already mentioned:
- • Improvement in your financial statement.
- • Improvement in your company’s overall credit rating.
- • Increase in your purchasing power for additional materials and supplies.
- • No loans to pay every month.
- • No unnecessary debts incurred.
- • Professional collection of payments.
- • No expenses incurred for administrative and collection activities.
- • General improvement of your cash flow.
Choosing a Factoring Company
There are some basic considerations, however, in selecting a factoring company. The ideal factoring will have:
- • Personalized service for its clients.
- • A turnaround time of payment for your invoices within 24 to 48 hours or even immediately.
- • A flexible contract.
- • Above average rates for cash advances.
- • Fast collection of payments from your customers.
- • Experienced management of your account.
One such factoring company is NeeBo Capital, a leader in the factoring industry with years of experience and service track record. NeeBo Capital offers much more than factoring services for businesses like fitness equipment development and auto windshield installation. NeeBo Capital provides lending options such as inventory and real estate financing, merchant cash advance, restructuring of payables, financing for supply chain, purchase order, and commodities, factoring for government projects and export, and forfeiting.
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|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?
» 09/15/2011 What to know when selecting a Factoring Company
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