Accounts Receivable Cash Flow

Written by Patricia Tunstall
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Management of accounts receivable cash flow is a matter of education in business methods and on-the-job training in the intricacies of your industry. Juggling sales volume and expenses, and cash flow and invoices takes knowledge about business operations in general and your enterprise in particular. Even then, cash flow is tricky. Fortunately, factoring is an immediate solution that has been used by corporations for decades, and is now available to small and medium businesses.

Focus on Growing Your Business

There are so many reasons to consider factoring: immediate cash, no new debt, no loss of equity, professional collections, invoice processing, and increased cash flow. One of the most important qualities that factoring brings to a business is flexibility; flexibility to take on new business, to find new ways to increase sales, and to offer good credit terms to customers.

Factoring lets you meet seasonal demands because you have the flexibility to cash in accounts receivable to underwrite the need for increased supplies. With minimal paperwork, factoring improves cash flow so you can grab opportunities and expand your customer base. Factors take on collections and invoice processing, which are a waste of your time as a business owner.

Above all, factoring allows you to concentrate on your business, to think creatively about where you want your business to go and how to take it there. Without worrying about cash flow, meeting payroll, and paying bills, you can relax and begin to develop practical plans for the future. When you know your finances are taken care of, you can look at your business with fresh eyes.


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