There’s benefits on benefits with this invoice Factoring company!
There’s nothing better than when you engage a service that provides a very real need for you and your business and on top of this, you get a lot of additional benefits thrown in. Cash flow is a major problem for many SME’s and in these tight economic times, it is not likely to ease up either.
Invoice factoring, simply put, is a way for a business to create cash flow by selling their invoices to a third party – a factoring company like Finrock Capital, at a discount. It’s important to remember though that Invoice Factoring is not a loan. You sell your invoices at a discount to a factoring company in exchange for a lump sum of cash. The factoring company then owns the invoices and gets paid when it collects from your customers, typically in 30 to 90 days.
There are many benefits to this service from a business point of view and we listed a few of these in a previous article on how we assisted a transport business. Not the least of these of course is that your cash flow problems are greatly alleviated but that still leaves many small business owners, already too stretched to handle their administration correctly, with the problem of managing their financial requirements.
Benefits on benefits
Imagine the relief then that many of our customers experience when they discover that Finrock Capital do a full debtor administration service, and this is all thrown in as part of the deal when they engage with us to provide their Invoice Factoring service. This includes…
Credit assessment and management – For a sustainable business, it is critical that one only sells on credit when there is the certainty that your customer can make payment. One must never forget that a sale is not a sale until the cash payment is in your bank. Included as part of the invoice factoring service we assist with…
- Credit Bureau reports and assessments
- Trade Credit References
- Payment history reviews
Sending out statements to your customer – This is a laborious but absolutely necessary admin that needs to be on time and regular. Our part of this service includes sending statements to customers each month with outstanding invoices due.
Confirming payments – Before month end, about 5 days before payment is due, we check with customers that they will be making payments on the due date. If not paid on the due date, we get commitments of when they will be paying and if there is a credit note request then we engage with you, our client, to finalise and thereby prevent delays in payments.
Allocating payments – This free service includes obtaining proof of payments and remittances from customers. We then allocate these payments to invoices and follow up on short payments.
Following up on delayed payments – Follow-up is essential and if any commitment is not met we follow up and ascertain why. We even provide letters of demand if necessary, as an additional part of the service.
The benefits of these add-on services to our customers are multiple, so watch this space to learn more about them .
The Factoring business that factors in benefits for you!
When you engage the services of Finrock Capital all these bonus services are included as part of the factoring fee so there’s no additional cost to you. You not only get increased cash flow by turning your business into a cash-on-delivery business but you get a professional team of credit managers to look after your debtors and collections.
Contact us today for a no-obligation consultation and let us assess your cash flow issues or requirements so you can begin to experience the many benefits on benefits with this invoice Factoring company!
