New Year, New Beginnings. Help Your Business Grow Using Invoice Factoring
2020 has been an uncertain year for everyone, and for the sake of business continuity, factoring is becoming more attractive than ever. Merchant Factors is seeing an increase in companies exploiting the strategic value of invoice factoring to gain better credit control while sustaining business growth.
Invoice factoring helps maintain customer relationships and lessens life’s daily stressors. By handing over your financial assets to a factoring company, you free up those precious resources, enabling you to focus on your business growth. As a factoring company, Merchant Factors will ensure that you are able to recover from expenses incurred this festive season, ensuring peace of mind in that your company’s finances are stable and positioned for a profitable and successful year ahead.Learn how to grow your business with Merchant Factors and understand how invoice factoring is the solution to success in 2021!
How Does Invoice Factoring Work?
According to Doug Shaffer, Principle of BIC Magazine ”Factoring puts you in control of the situation, as opposed to waiting for a customer to make a payment, which can sometimes be unreliable.”If you notice your business heading towards a financial disaster, invoice factoring is the solution you are looking for.
How Can Merchant Factors Help My Business with Invoice Factoring?
It is simple! Your company sells any outstanding invoices to a factoring company such as Merchant Factors. Merchant Factors will settle a lump sum of your company’s invoices, up to a total of 75%. This money is transferred into your account, in cash, giving your company instant access to working capital. This is a simple and effective business cash flow solution.Finding ways to grow your business is a vital part of any strategy. Make invoice factoring part of your business strategy for 2021.
Help Your Business Grow Using Invoice Factoring:
1. Save Time with Invoice Factoring: Spend Resources Where They Matter Most
Waiting on your customers to settle payments can be tedious and a delay in payments often lead to unwanted and uninvited financial turmoil.
Globally, due to lockdown, trade restrictions and growing unemployment rates, the world’s economy has taken a knock, causing knock-on effect, leaving many industries faced with an economic crisis, this crisis has not only impacted businesses, but has also reduced the purchasing power of consumers.
Now more than ever, it is essential to establish a safety net if your customers are unable to pay on time. With the advantage of added cash flow to cover costs while waiting for payments, your business is empowered with the freedom to allocate resources where they are most needed.
Invoice factoring can ease the heavy financial burden that your company may be faced with, giving you time to explore new business opportunities, grow your customer network and maintain sustainable business relationships.
2. Grow Cash Flow with Invoice Factoring: Streamlined Cash Flow
Invoice factoring is a quick and effective solution to maintaining cash flow and working capital with money that is already owed to your company. By selling your invoices to Merchant Factors, you have immediate access to cash flow and will have the freedom to grow your business. This will also increase your working capital, which allows your company to take on new clients and projects, and this will lead to financial gains and increase profits.
3. Save Money with Invoice Factoring: We Take Full Credit Control, Saving You Money
Triumph Business Capital explains “Another big advantage of invoice factoring is that it takes the burden of credit control away from you, saving you time and money.”
The cost of factoring is offset by the amount of time you save, which in turn saves you money giving you time to focus on other areas of your business. Merchant Factors takes away the constant burden of having to follow-up with your debtors. We have dedicated debtor administrators taking care of your customers accounts. For you this means less time dealing with credit control paperwork and more time focusing on business growth.
4. Grow Your Business with Invoice Factoring: Paid Invoices Allow Future Business Growth
With better credit control, invoice factoring allows you instant cash flow to execute your company’s 2021 strategy effectively. With factoring you have the opportunity to see which funnels need your attention and by now you should have a clear indication of where you want your business to flourish. This cash injection means you have more control of how the money flows through your company and which direction it should take. Reinvesting in marketing plans and increasing your client database, for example, are all areas that require your attention. Merchant Factors gives you that freedom.
5. Maintain Business Continuity with Invoice Factoring: Expand Your Horizons
In our article: The growth factor: expand your business with factoring we explain that “Unlike a conventional bank loan which is based on the value of bricks and mortar, there is no limit to the amount of working capital that your business can access through factoring.”Invoice factoring expands with your company. Merchant Factors relies on your accounts receivable which means that as your receivables grow, your company has access to increased working capital.
Why Choose Merchant Factors For Invoice Factoring?The benefits of invoice factoring include:
- Increase in sales and profits
- Cash for expansion
- Increased margins and improved credit rating
- Saved management time
- Minimising potential bad debt
- Improved return on capital
- Expansion without loss of equity or control
- Development of new product lines
- Purchasing advantages by being able to buy in larger quantities
- Purchase discounts through prompt payment of suppliers (discounts and increased profits should more than offset our charges)
- Available funds for special opportunities, emergencies and seasonal peaks
- A more competitive position for you in the marketplace
- An improved standing with suppliers and customers
Since we in effect become your partner, you have the added advantage of our expertise, which will benefit the smooth operation of your company