You probably know how invoice factoring speeds up your cash flow and helps you expand your business. It’s great to get paid right away for work you’ve completed rather than wait 30, 60, or even 90 days for your customers to pay.
However, if you factor invoices, would your customers benefit as well? Let’s think about what factoring could mean to them.
When you factor your invoices, you reduce potential friction and increase positive interactions. For instance, you gain the support of a full staff of factoring specialists with accounts receivable and payable processes in place for invoicing, collections, and prompt payment. Your customers can also benefit from a factoring company’s finely tuned procedures and paper trails that eliminate any miscommunications and misunderstandings about payments.
A good factoring company has the online resources that you need to stay on top of all transactions, which eases any questions. With all verification documents and paperwork conveniently received, sent, and stored, you and your customers can stay on the same page. When it comes to customer relationships, you can rely on a leading factoring company to smooth out the process.
Separation of collections and sales
Another area of improved relationships with customers comes from letting someone else take care of your collections chores. It’s awkward when you’re calling on customers to both ask for more business and ask about a late payment or proof that a job was completed. When your factoring company is calling on your customers about sending in their payments and resolving problems with paperwork or billing, you don’t have to get involved with that side of the transaction.
You can also count on a top-tier factoring company’s collections specialists to stay unfailingly professional and courteous: they want to keep communications open with your customers and to treat them like their own customers. A leading factoring company will be strongly invested in maintaining positive relationship with your customers because its staff wants you to succeed. Keeping good relationships with your customers is a very high priority when you partner with a good factoring company.
Trust in your future
When your customers know that you are factoring your invoices and getting paid upfront, they know you have the resources to keep your doors open and get the job done. Having the financial stability that factoring provides protects you from getting overwhelmed with bills – and lets you plan for the future. You can think about improving your business with new equipment, new product lines, new hires: whatever you need to increase your profitability. Your customers can relax, knowing that you have the financial resources to serve them both today and tomorrow, over the long haul.
To learn more about how factoring can benefit both you and your customers, click here for a free cash flow consultation. Find out how you can improve your company’s future.