As a manufacturer, you’re basically losing out on opportunities to expand, grab more market share and make special cash deals when you’re waiting for invoices to turn into cash. When your cash is tied up in an accounts receivable logbook instead of in your bank account, you’re putting your own business at risk while simultaneously missing out on opportunities to grow.
Cash in hand gives you the flexibility you need to run your manufacturing or distribution business more efficiently. It also gives you the opportunities you need to take advantage of deals, sales, and partnerships that are increasingly available in the market.
At Interstate Capital, we focus on giving manufacturing and distribution companies the flexibility they need in order to make huge strides in their industry. We give you the ability to pay your suppliers with our funds so that you can continue doing business while you wait for your clients to pay. We also offer free electronic funds transfers in order to make the factoring process as cost-effective for you as possible.
Invoice factoring rates are incredibly low right now and unlike traditional bank loans, you don’t need collateral in order to apply. This type of financial leverage is key to becoming an important player in your industry because your success depends on incurring as little expense as possible while optimizing your cash flow.
Three questions to ask a factoring company before you sign the dotted line:
- How quickly will I get paid?
If you usually have to wait 90 days for your clients to pay invoices and the factoring company will be able to pay you in 60 days, this might not solve your immediate problem of needing to make monthly payroll and pay suppliers each month. Find out what timelines you can expect from your factoring company to ensure a positive cash flow each month.
- How much of the invoice do you advance?
Some factoring companies will advance 70% of the invoice while others will advance 90% of the invoice. Make sure you understand the fine print so that you know how much money will be paid into your account (and how much you have to wait for).
- Will you have a customized client service representative?
Factoring services are usually very straightforward, but it’s in your best interest to partner with a factoring company that can provide a customized, personal service. If you have queries regarding accounts, clients or payments, will you be speaking to the same person? Having one point of contact can streamline the entire process for you and ensure that you always know where you stand in terms of payments and accounts receivable.
Take your business to the next level by partnering with Interstate Capital for factoring solutions that have been designed for your industry. If you’re in the manufacturing or distributing industry, then you need to make sure you are getting the financial services that you need to not only stay afloat, but ensure that you are prosperous. Get an instant factoring quote today.