30-60-90 day terms to your customers make you their interest free banker.
Keep the money and use it to earn interest ...
take advantage of volume or early pay discounts ...
and/or begin the next job, project or order!
Receivable Based Financing makes very good business sense as when you extend credit
terms to your customers, you become their banker. In effect, you are loaning your money to your customers, free of interest
for 30 days - or more, while you surrender the use and value of that money and wait to be paid.
Extending
credit impacts your company in three significant ways:
You lose interest income that you could
have earned, even in a low interest rate savings account.
You may not have sufficient funds
to take advantage of volume or early pay discounts from your vendors.
You may even lack the
capital to begin the next job, project or order and you may turn away potentially profitable business from creditworthy customers.
The longer your customers take to pay, the greater the negative impact upon your company.
Although used
by very large, highly recognized corporations for years, Receivable Financing is now available to small and mid sized businesses.
Invoices that you issue to your customers can be exchanged for immediate funds or used to provide a credit line from which
you may draw funds as needed to better manage and grow you business.
