Take Advantage of your Biggest Asset with Accounts Receivable Factoring (Part 1)
Take a good look at your detailed financial analysis and you may be in for a surprise. Many business owners are not aware that between 40% and 70% of your company assets are tied up in your Accounts Receivable. What if they were all of a sudden gone?
Precisely, your largest asset would be gone but your liabilities would remain the same.
Oddly enough, Accounts Receivables are often looked down upon, but in reality, they are a vital part of the company. This is all money waiting to be converted from credit sales accounts to cash. No further action is needed on these sales other than to collect. No more costs to produce the product, no shippingjust collection.
Accounts Receivable Factoring will allow you to stop waiting for you to change your sales on credit into Working Capital.
All the Accounts Receivable that is tied up on your balance sheet and income statement represent 80% of your sales, but this is of little good to you until they have been converted into Working Capital. Accounts Receivable Factoring will do exactly this for you.
Oddly enough, many companies look at Accounts Receivable Collections as a nuisance and a bother. This task is too important to be looked upon with such little regard. Using Accounts Receivable Factoring will not only free up your assets but will also have a Professional Accounts Receivable Management Firm handle the accounts with professionalism and diligence.
Oddly enough, this undesired department of the company will be left to resolve the problems that customers have with their product or service. They are essentially an internal collection company, not customer service, but they will come across many opportunities to save accounts and even create new once.
Since we are talking about internal collections in Accounts Receivable, they do not have the ability to handle the needed customer service aspect and the Accounts Receivable Department is measured by DSO (Days Sales Outstanding) and Percentage of Bad Debt – their job is to collect as much as possible at any cost, which can lead to the loss of future business.
A Professional Accounts Receivable Factoring Company will make sure the accounts are handle properly, not a Collection Company but an Accounts Receivable Management Service.
Wade Henderson – recognized Professional – 15 yrs in the Business Finance Field – strong reputation for getting the deal done. IMMFinancial.com A R Factoring AR Factoring
Category: Credit Line | Tags: A R Factoring, Accounts Receivable Factoring, Accounts Receivable Financing, AR Factoring, Commercial Factoring, Commercial Line of Credit, Credit Line, Discounting Factoring, Invoice Factoring, line of credit, Receivable Financing, Small Business Factoring Comment »
