How Factoring Can Help Your Under Ground Utilities BusinessIf youíre into the under ground utilities business you know how hard it can be trying to run the company while waiting for an invoice to be paid. While waiting, your company has to keep paying the bills, not to mention to pay the gas and salary for your personnel. While difficult, there are options available and the most effective way to overcome this problem is with factoring.
How Factoring Helps
With factoring you no longer have to worry about your business going under. With factoring, your under ground utilities business will get their hands on cash rather than wait up to 90 days to pay for completed tasks. With the kind of service that a factoring company can provide, payment can be processed in as little as a week or less. This will provide your business several benefits. For starters it will give your company the means to pay your drivers. Second, you can accept new jobs and recover transportation expenses without incurring additional debt.
How Factoring Works
Before you can use factoring in your under ground utilities business you need to understand how it works. Factoring, also known as accounts receivable factoring and invoice funding, mainly involves two things: the factoring company and your companyís invoices. The factoring company or the factor buys your invoices for a specific amount and upon collection charges a business fee. The rate varies, so itís best to look for one that offers a low rate.
To give you an idea, say your company has just completed a $30,000 contract for a client. Now you expect to get paid in 60 days. What this means is until your company gets the money from your client, you wonít be able to use the funds to pay for the driver, gas and other expenses. If this keeps happening your company wonít have the money necessary to fund other operations or accept new contracts.
By using a factoring company this problem can be resolved quickly as the factor will pay for the invoice and collect it. Upon receipt of the full payment the factor will hand over the amount to you and get paid the fee you agreed on. With this simplified and effective approach your company will have the money necessary to resume operations. Factoring in short, provides your company with capital to resume or expand your business.
All this comes without the usual costs associated with such a move. With all the benefits that a under ground utilities business gets, it is hardly surprising why it has become the preferred choice in the industry today.
One factoring company that can help you is NeeBo Capital, a Florida based company that has a worldwide clientele. The company specializes in factoring of invoice receivables with 0.59% - 1.5% rates for 30 days, and no monthly minimums or financials required. Today NeeBo Capital is offering a wide array of services including freight, traditional, recourse and government factoring among others.
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