Let Factoring Help Your Machine Shop Business Achieve A Smooth-Flowing Cash FlowA small business like a machine shop is obviously not a conglomerate but it still needs a cash flow that can sustain daily operations without a hitch. More than other small businesses, machine shops require constant purchase of supplies for their customers and consistent good service performance. Unfortunately, most customers of machine shops pay on terms which could take anywhere from 30 to 90 days before invoices are paid.
This delay causes insufficiency in cash flow. While the business needs to spend for this and that, most, if not all, of its invoices are tied up and not providing the business any revenue to meet financial obligations such as payroll, purchase of supplies, purchase of new or upgrade of equipment, and other daily expenditures. Taking out a bank loan is far from the solution that it might initially present itself to be once the bank’s interest amount starts to pile up.
Why You Should Consider Factoring
Factoring is a financial management tool that buys the invoices of a business for the cash it advances without the long wait for approval that comes with a bank loan application. Factoring can help mall businesses like machine shops because:
- • Funds can immediately be released between 24 and 48 hours upon approval of invoices.
- • The factoring company takes up the cudgels of collecting payments from slow-paying customers.
- • Regular replenishment of the cash flow enables the prompt payment of salaries of personnel and purchase of supplies and equipment, expansion of the business through marketing, and increase productivity as the business hires and trains new employees.
- • Not only is the company’s cash flow improved, there is also an overall improvement of the company’s financial statement.
- • There is no credit history or background investigation to impede your approval for the additional funds.
- • The factoring company does not focus on your financial condition but on the credit worthiness of your customers and your monthly volume of invoices.
- • The company’s revenue grows in direct proportion to its increased credit line rating.
- • No accrued debts and loan payments with astronomical interest rates to pay.
The Best Funding Solution
Small scale businesses with cash flow issues like a machine shop are especially vulnerable to loan sharks. In the effort to sustain business operations, a machine shop could be impulsive and take out a loan without necessarily anticipating more financial problems in the future as it incurs debts while still having insufficient funds to run the business. The best option for a machine shop is to engage the services of a factoring company like NeeBo Capital.
The flexibility that characterizes a factoring company is more appreciated by contractors and installers who have their own businesses than the restrictions of a bank. Factoring can help your business grow and have a consistently adequate cash flow simultaneously, provided that the customers you have are creditworthy in their paying commitments.
NeeBo Capital provides factoring services, asset-based lending, trade finance, and other lending options to tide your business over a temporary cash flow crisis or continuously assist you in your financial needs. With a worldwide network of satisfied clients in various service industries such as aviation brokerage, cable ads and marketing, jewelry shops, janitorial services, cable installation, and agriculture, 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