Understand How Factoring Can Help Steel ManufacturersSteel manufacturers play a major role in the development of our society. All modern structures from residential houses to big industrial complexes use steel as important parts of their structure. We are all dependent on steel because almost all the things we use every day is made of, or partly made of steel. It is no wonder that manufacturers of steel are among the greatest contributors in a country’s coffers.
The demand for steel will never stop therefore we can assume that these manufacturers will continue to experience brisk business. However, all is not well with this industry. The reason is that their clients usually pay them with checks that can only be en-cashed after 30, 60 and even 90 days. As a result, they are forced to juggle their funds just to pay for the salary of their employees, their utility bills as well as the payments for their suppliers of raw steel ingots.
Factoring Is the Best Way Out
Steel manufacturers can take advantage of factoring companies to get out of their financial problems. In fact, this is the best solution for such manufacturing firms which issues invoices to their clients for the steel products that they have delivered.
If you will seek the help of a factoring company, they will buy the invoices that you issued for an agreed discount. Or you can ask them for financial assistance with your invoices as “collateral” for a very low interest charge. Whatever option you chose, you will receive your cash upfront in just a matter of days. That will help solve your current cash flow problem.
Factoring Releases Your Cash Fast
A factoring company is able to give you cash much faster than a commercial bank will do if you ask them for an emergency loan. They can release your funds in a short time because:
- • They will not check your credit standing.
A factoring company is not interested whether you are a good borrower or not. You are selling your invoices to them and are not borrowing money from them. Therefore they don’t need to waste time in checking your credit history or whether you have a high credit rating. This background check takes a lot of time that is why bank loans are usually approved no less than 30, 60, and some even as long as 90 days. A factoring company will not waste this amount of time, but readily releases that money that you need.
- • They will not ask for collateral.
Remember, you are not borrowing money from a factoring company. They are buying your invoices which represents real cash although not yet collected. To a factoring company, your invoices mean real money. Why will they still ask you for collateral?
Factoring is the quick solution to your cash flow problems. In fact, with a factoring company such as NeeBo Capital, you won’t be experiencing financial problems anymore. They are giving steel manufacturers the lowest interest charges in the industry, starting at 0.59% only.
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