Factoring Is the Solution to the Problems of Municipality Vehicle ProvidersThe work of municipality vehicle providers is very important in the service being provided by a local government to its constituents. Without them, the municipality will not be able to go to places where they are needed at the precise time they are required to be there. They play a crucial role in the mobilization of the services that the local government provides the public.
These providers rely completely on the local government for the payment of the services they render. Unfortunately, when it comes to collections, they always experience slow payment. As a result, they find themselves in all sorts of financials straits: the salaries of their employees are not paid on time; they cannot pay their utility and rental bills on time; and their suppliers are not also paid on time. But the worst consequence is: they cannot raise capital for future expansion.
Factoring to the Rescue
If you are one of the municipality vehicle providers which cannot make ends meet, your best move is to seek the help of a factoring company. This company offers financial services which are more attractive to borrowers than those being offered by commercial banks.
What they will do is to purchase the invoices and bills that you issued to your customers at a certain discount. The discount can range from 2.5% to 7%. Or you can chose to have your money at a certain interest charge. Whatever arrangements you choose, you will have your money in no time.
Factoring Means Fast Cash
You can get your money faster with a factoring company than with a commercial bank. On the average, the company will release your financial assistance within two days. Banks usually have longer processing time which range from 30 to 90 days.
Factoring Requires No Credit Checks
There are no hassles if you will use the financial services of a factoring company. They will not subject you to credit checks like checking your credit history and how high or low your credit rating is. What they are more interested in is the credit rating of your customers, especially the bigger ones. In this case your biggest customer is the local government. We all know that local governments will never abscond on their financial responsibilities. They have our taxes to bank on. The only problem is that they are slow in paying their bills.
Factoring Does Not Require Collateral
To factoring companies your invoices to the local government are just like cash – only yet to be collected. Since they already have your invoices in their hands, it is as good as they are paid for the services they have rendered. Therefore they will not bother asking you for collateral.
A factoring company such as NeeBo Capital will be of great help if you are among the municipality vehicle providers which are experiencing money problems. They can “lend” you money starting at a very low interest rate of 0.59%. You can also sell your bills and invoices at a very low discount. No matter what option you choose, you can easily solve your cash flow problems now.
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?
» 09/15/2011 What to know when selecting a Factoring Company