Your Cash Flow Slowed, Accounts Receivable Factoring Can Help
In the most recent issue of Fortune Small Business there is a great article by Jay Gotz. In Jay’s article "Surviving the Recession" he summarizes through downturns in the market you can afford decreased profits if you have cash flow, however the converse is not true. I could not agree more, cash flow is the life blood to any company. Without proper cash flow the business will not function properly and in many cases the ownership and management will pull away from their long terms success strategies to solve short term cash flow issues.
According to a survey by Fortune and Zogby International of business owners in early December they found, 55% of small business owners say it has become harder to collect receivables in the past six weeks. Of those who say it’s gotten harder, 60% describe this as a serious problem. Spending much time in the private sector, prior to founding Troon Funding Services. I can confirm this is a serious problem, because as accounts receivables grow, cash flow tightens.
Accounts Receivable Factoring will allow your company to convert those accounts receivables to cash. As I stated in a previous article cash is king, especially in this economic environment. This additional working capital can be used to take advantage of payment discounts offered by your vendors, look for new opportunities in the market place due to your competitors inability to ship timely, and/or to pay down existing expenses. In all cases with factoring, your business will be in a better cash position.
Is Accounts Receivable Factoring right for You…
Accounts receivable factoring can actually be a very smart move in the game of business if played correctly. To make some quick money, a business owner will sell their receivables at a discounted price to us for cash. In turn, we will turn take full responsibility of the account. Unlike a bank that charges interest on the businesses loan balance, Troon Funding will charge a small discount fee that is paid after your customer submits payment. Again, this method of financing is not a loan and is most beneficial to businesses looking for immediate cash flow, specifically for invoices less than 90 days old.
Author: Darren Grady
If you want to research your options, please contact us at 480-239-9879, or go to our website, Troon Funding Services, for more information on Accounts Receivable Factoring and other products and services we offer.
Author : Darren Grady – http://www.workingcapitalforgrowth.net
Article Source: http://EzineArticles.com/?expert=Darren_Grady
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