Don’t Stress 30 day Terms

After long negotiations your business finally makes a huge sale. You look forward to building a relationship with this large client. However there is one catch; they want 30 day terms.

This could potentially be troublesome for the finances of your business. You have to cover the costs while completing the deal then 30 days after its finished. This has not been a problem in the past, but you’ve also never had such big deals in the past. A deal this big could cause a huge cash flow problem for your business. Also, you have never dealt with them before, what if they are not prompt on payment? You could miss payroll or be late paying your suppliers. But you don’t want to lose this deal. What do you do?

Well a great place to turn in this situation is to an accounts receivables factor. They can approve an applicant for funding in as short as 48 hours, and disburse funds upon invoicing. This means you can make the deal and not fret about the cash flow position the 30 days terms might put your business in.

Factoring is also a good tool to use when you are competing for a customer; offering flexible payment terms is a way to differentiate your offering and win more business. Factoring can enable your business to extend payment terms without creating a cash flow crunch.

Factoring also helps when taking on a new customer in that, factors will do a credit check on all of your debtors. This provides valuable information on your customer’s ability to pay for the orders they make. There is nothing worse then not getting paid for your sales; factoring can help prevent this situation from happening, allowing you to focus on your credit worthy customers.