Running a business is a constant process of looking for a buck to save.
This can mean making the switch from paper documents to digital file storage. It can mean shifting your budget to marketing and accepting a temporary down period in light of long-term gain. International factoring is one area many businesses today are reconsidering, due in no small part to the importance of being on time. Time is money, as the saying goes, and even a minor dip in productivity can cost thousands. Advance business capital is a complex entity, but one that does better when you lay out your options side-by-side.
Give your cash flow its best possible chance at success. Learn more about international factoring and the benefits of invoice funding.
Today’s transportation network is a complex labyrinth. Customers need their packages delivered on time, businesses need to receive materials to keep functioning…it’s neverending and only getting faster by the minute. It’s estimated over 12 million trucks, rail cars, and locomotives move goods over the transportation network every day. The Federal Motor Carrier Safety Administration has also gone on record to state six million motor vehicle drivers work in the country. Getting the most out of this deal is using the modern resources available to you.
Small businesses are flourishing in the United States. Thanks to modern technology and timely delivery businessowners of all budgets and industries can get what they need in a smart fashion. There are over 28 million small businesses in the country, with this number seeing a massive spike these past few years. A big element that keeps small businesses from doing even better is money lost through inefficiency. According to a recent study, if all invoices were paid on time small American businesses could collectively hire two million more employees.
Just how bad is today’s small business invoice factoring? A recent study found nearly 60% of invoices today are paid late. A single paid invoice has to be supplemented with additional outreach and labor, with permanently unpaid invoices setting businesses back exponentially. According to a piece published by the Wall Street Journal, the factor advances most of the invoice amount, which is between 70% to 90%, after checking out the billed customer’s credit-worthiness. Once the bill is paid the factor remits the balance.
Business factoring services are a necessary buffer to provide businesses relief and cultivate a more consistent customer base. Factoring companies are able to help small businesses bridge invoice payment gaps with upfront payment models, as high as 90% of the original invoice. This goes a long way in avoiding the 60, 90, and sometimes 180 days for payment to be received. This reduces the amount of labor filling in the gap, reduces stress on employees, and saves money. International factoring might be what you’ve been missing all this time.
International factoring is a great tool to mitigate overwhelming costs and put you in better financial standing to achieve your goals. Bankruptcies in the United States went from 24,000 companies in the first quarter of 2016 to 25,000 in the second quarter. Too many businesses are struggling with shipping, transportation, marketing…a delicate equation that, more often than not, is inherently fumbled by late payments. Invoice factoring makes sure to convert outstanding invoices due within 90 days into immediate cash. Imagine what you could be spending that money and time on instead.
Save money, open doors. Look into international factoring for small businesses this year.