Factoring to Top Speed

The best kind of client any Factoring company helps is one that is profitable and growing. Growth is something that all businesses try to achieve for reasons that are obvious. Yet it is true to say that the most difficult undertaking any business can pursue is growth.

It’s not just a matter of engaging new customers. With a competent sales force, a product or service in demand, growth can almost be inevitable. An increase in sales activity requires an increased number of people to support it. Then, one has to ensure that one either has additional inventory or can persuade suppliers to ship additional product. If one is in the service industry, then one has to be able to attract the right kind of additional employees to service the new customers.

So, is that enough?

Well, not really…. An increase in sales, while requiring all of the above, also requires, nay demands, a flexible and intelligent approach to developing new procedures and routines in the daily operations of the business so that increasing sales do not result in chaos. Effective Internal Controls need to be put in place. What’s an Internal Control? An Internal Control is a procedure or a set of procedures that allows the work of one person or team to be checked by another. The purpose of Internal Controls is to ensure fluid operations that do not go wrong, but also and very importantly, are implemented to ensure that the assets of the company are protected – plainly, if one person tries to steal, that another person is in a position to stop it. (Phew! Spoken like an old Auditor).

We’re making progress here: Growth equals Product or service in demand, competent sales force, enough people and/or inventory and, further, effective procedures to manage the whole show. Seems like a pretty comprehensive list, doesn’t it? Well, for those analytical ones among you (and, of course, all my audience shares that admirable characteristic), it would appear that I might just have left out a vital part of the equation …. Enough money to finance all this extra stuff.

Sources of Funds

  1. Bank Loans: The cheapest way to borrow, but really difficult these days.
  2. Investors: Well, you really have to have a fancy new product to get these folk interested and you will have to give away some of your stock. I suppose you could borrow from them, but finding enough of them to give you the sums you need? No easy task.
  3. Family loans: They work, but unless you have a strong family, you might find yourself mired in family gatherings trying your best to avoid some of your relatives.
  4. Credit Cards: OK, OK, it’s possible, but you have to make monthly payments at a high interest rate each month or your credit goes to Hell in a handbasket (where DOES that expression come from)? Intuitively, most of us understand that one does not use a credit card to finance the purchase of major assets – it’s just a no-no, unless you have no alternative.
  5. Home equity loans: Possible, but not too popular these days and they have to be repaid regularly.
  6. Merchant Advances: Wow, these are popular nowadays. Ask for money today, get it tomorrow, But, don’t ask the interest rate, it’s exorbitant and they have to be repaid usually within 6 -9 months and that lender dips into your bank account every day to get repaid. Sure, they are quick and easy, but have you ever heard the expression, “The quick and the dead”? These loans are DANGEROUS. One wrong move on your part and the lender becomes like all 4 Horsemen of the Apocalypse. No quarter given here (not even a dime), and before you know it, you are in deep, deep trouble.
  7. Factoring: Well, I have to leave the best for last. I have to be somewhat self-serving ‘midst all this education I am handing out, don’t you think?

Looking After Your Business

It may take a little longer than a day to get financing, but to ensure that we Factors make a reasonable living, we have to look after your business: We have to make sure that you sell to credit-worthy customers. We do that as part of our cost of doing business. What’s the use of us advancing your company money against an invoice for a sale to a dead-beat? That surely is a one-way ticket to doom. (Do you know any other type of financier that will HELP you to make sure you sell only to credit-worthy customers)? I don’t and I’ve been doing this for over 20 years. What else do we do?

Relieving you of the Monitoring and Collection of Receivables

We relieve you of the burden of monitoring and collecting on overdue receivables. That might sound like a direct contradiction of what I just said about not selling to dead-beats, but let’s face it, not everyone who enjoys Net 30 pays on time. Some of them think Net 30 means they cut the check on the 30th day, others think that 45 days is good enough, so it pays to have someone monitoring your business’s outstanding invoices just to keep a friendly (and professional) eye on things. And believe me, when we make a collection call, it’s friendly and professional.

We know that our ability to earn an income from you, depends on your ability to keep selling to happy customers. Why on earth do you think we would want to spoil that cozy relationship?

Conclusion – You are all set for Growth

So, now you can rest easy. You have the product or service and you’re growing your sales. You have the personnel and the procedures (let’s call it by a fancy name – the infrastructure) to cope with the growth and most importantly of all, you have the money to make payroll (and on time), you can earn an early payment discount from your suppliers either to increase your margins or mitigate the cost of factoring (yes, we do charge), and whether you give us $55,000 in invoices to finance in a month or $255,000 in invoices, we have the resources to support your growth. What’s more, you don’t have to pay the money back in 6 months. We’re like the bunny that keeps on going. As long as you’re happy with us (and why shouldn’t you be? – We have clients who have been with us for upwards of 10-12 years!), we will finance your growth, finance your prosperity and you will not give up any of your stock. We won’t interfere in the running of your business, and if you so choose, you can surely rely on us for wise management and financial advice. Hells bells, you can reach out to me every day and bounce questions off me, if you want. With my financial background and experience, you WILL get a wise response.

Easy, Simple, Professional – and not available on Amazon!

We make the whole process easy and simple. We’re experts. We let you sleep at night. You do your thing by running your business and we’re the team supporting your efforts. So, what are you waiting for?

I’ve described the perfect product, but you can’t get it on Amazon, so call me today.

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