How Factoring Can Help Manage a Food Service Business Cash Flow
There is no business more than Food Service that requires cash to be available most of the time, if not all of the time, because of the constant necessity to replenish supplies like ingredients, packaging materials, etc. and to fund continuing education for staff and personnel.
The Focus Should be On Business Operations, Not the Cash Flow
When the cash flow of your food business is insufficient, operations are disrupted. Instead of focusing on product quality, marketing and sales, customer service and business expansion, your depleted cash flow gets all the attention. As a result, your food business accumulates issues with food quality control such as lack of the appropriate cooking equipment, quick employee turnover because you don�t meet payroll obligations, and restrictions on additional purchase of utensils or gadgets necessary to keep a food business running smoothly.
Factoring gives you the freedom to focus on your business operations because your cash flow is not impeded by lack or insufficiency of funds. Why get a bank loan or overdraft and be saddled with voluminous paperwork to fill out and protracted credit history checks? Unlike banks or other lending institutions, a factoring company doesn�t give weight to your financial condition but to the creditworthiness of your customers. The rules are simple enough: the factoring company purchases your accounts receivable or invoices, pays you upfront and immediately for them, and then collects the payments on your behalf.
When Factoring May be the Solution
Issues such as slow-paying customers, malfunctioning ovens or gas ranges, resigned sous chef or waiter, and additional chairs and tables can be nerve-wracking to handle if you don�t have ready funds at your disposal. These concerns cannot wait 30 or more days to resolve, unless you�re prepared for bankruptcy. Improving your business cash flow is actually getting your business to move without hitches.
If your food business is a start-up, that�s all the more reason to consider factoring. If you have an existing business saddled with tax liens or other financial problems, consider engaging the services of a factoring company that can help you get out of your financial rut. Selecting a factoring company with a solid reputation for excellent professional service is the first thing that you should consider after you have decided your Food Service business could use some factoring solutions
Helping More than Cash Flow Improvement
NeeBo Capital�s wide range of financial services can facilitate your investment in additional or new kitchen equipment, timely compliance with payroll obligations, deal with other expenses, and even support your negotiations with your suppliers for more flexible terms.
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
