Accounts Receivable Turnover
“STOP FACTORING” says the ad … but still sell your invoices?Have you seen that ad that says: "STOP FACTORING" ... but when you click on the ad it takes you into the process of ... factoring? Love it! If you're considering this deviation of the process open your eyes wide and read on because your customer is still going to know (minimally they change the assigned mailing address as does any factor!). And credit checks? Don't find out the hard way! That said the costs may seem better but the reality is that the pricing for factoring is competitive - and sometimes even less than with this process - and the value added services a factor offers goes beyond the basic transactions so why not get more bang for your buck? DO YOU HAVE COVENANTS? Your accounts receivables are an asset and if your bank is not fully aware that you're selling them off you might want to confirm that you're not out of covenant if you have a loan ... unless you want to risk having your loan called which will really make your life a lot of fun - NOT! ARE YOU INVESTING IN THESE RECEIVABLES? Be aware of the following: • Who actually ...
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Thank you for visiting out website and taking time to educate yourself more on business financing. Working Capital and Cash Flow, which are the life blood of every business, is something that none of us can ever know enough about especially in this changing environment.
A comment by one of the hardest working and most committed VP's I've met from a large Commercial bank stated in a recent business journal article, "The banks look for a stable and predictable primary source of payment, operating cash flow from the business. And then we are going to look for a secondary source of repayment, whether it's a an adequate collateral position and/or the strength of the guarantor ... . The issue is that there are fewer companies that hit that today ... "
So ... what do you do? Explore our website and call us. If we can't help you directly maybe someone we know can. Either way: Thank you for your time and if ever we can help or advice you let us know!
Regards,
Ernie Brown MBA-DCFS
Principal of Financial Manager's Resources
Recent Posts
Working Capital Provider or not: Be careful when money changes hands!
Nov 6th, 2011 | By Ernie Brown | Category: UncategorizedWorking capital provider or not: Be careful when money changes hands! Whether factoring invoices or offering a signature loan, funders and lenders - as ...
Covenants: Make them work for you … or else!
Oct 13th, 2011 | By Ernie Brown | Category: UncategorizedWhen a staffing company said they were talking to two other factoring companies about working capital and were all confused by the contracts why should ...
