After receiving a letter from a national billboard advertising company requiring all of their vendors to accept net 60 day payment terms Armando was faced with a dilemma. "I've been a supplier of theirs for more than 10 years and when they decided to simply change their payment terms, I had a real cash dilemma.
Payroll, supplier demands and overhead nearly crippled this 15 year old large format printer. "Historically, when I needed money for the business I simply relied on the equity in my home. When I approached my lender about getting additional financing, they simply said that program was no longer available!"
Gateway was able to provide Armando a quick and flexible line of creditto support his businesses day to day cash needs. "With reliable funding and a solid partner we're seeing clearly again!"
Growing a business of any size is not easy. Growing a small business becomes challenging when customers decide that you can wait for your money a lot longer than you expected to wait. You could always just tell customers like that to take their business elsewhere, but what if those customers just happen to be your biggest and longest standing clients?
How To Grow A Company
When you want to grow your business, you need to be able to meet challenges head on. Unfortunately, some of those challenges wind up being financial issues that are well out of your control. For example, when you are handed the chance to take on a large client but that client only pays on Net 60 terms. First of all, you know it is a large client because only large clients dictate terms like that. Secondly, you also know that the business will help your company to grow to a new level. But can you handle Net 60 days?
You Grow A Company With Relationships
The last thing you want to do is take on a huge customer that you will immediately regret. At the same time, you do not want to turn this customer away because it means revenue and the potential for even more large customers. But what if all of those large customers also require Net 60 terms? What you need is to make some solid financial relationships that will allow your company to take these kinds of deals without fear of the potential financial consequences.
Receivables Factoring Is The Only Relationship You Need
You could spend your time and effort developing a relationship with a bank, but bank funding is finite. When the bank determines that you have reached your limit, it will stop funding your operations. When that happens, you will be left with a bunch of Net 60 customers and a cash flow problem of epic proportions. What you need is a relationship with a factoring company.
Receivables factoring will to turn your invoices into cash in just a few hours and it is an ongoing relationship that will keep supplying you with cash as long as you keep bringing in invoiced sales. It doesn't matter if your invoices are Net 30 or Net 60 terms. All that matters is that you have outstanding accounts receivable with creditworthy clients. As long as you have that going for you, then you can take care of the business you have and look forward to taking on more business in the future.
Receivables factoring offers the financial stability your company needs to handle clients with seemingly outlandish payment terms. Instead of fretting over how you can make those clients a part of your success, you need to get involved with a receivables factoring company and turn all of those big customer opportunities into the building blocks for your success.