Keith Lawson, President of Family Plumbing provides true 24 hour emergency plumbing services. One of their largest customers operates more than 30 facilities utilizing complex automated car washing equipment.
"They're my largest customer, but the red tape in getting an invoice approved for payment took forever and constantly killed my cash flow. As my payroll grew and I tapped out my lines of credit with my suppliers, there was simply not enough to support my daily cash needs. A local loan broker referred us to Gateway and in 3 short days, we were flush with cash... no pun intended!"
You start a business hoping that you will be able to find the revenue you need to pay for your daily operations and keep your company growing. Then, one day, you land that client that will pay for everything and put your company on Easy Street. Unfortunately, no one told you that Easy Street was filled with potholes.
With big customers can come big headaches, but those headaches are worth it as long as the revenue keeps rolling in. But what do you do when your customer's payment habits cause your cash flow to slow to a trickle?
Wearing Out Your Welcome At The Bank
No matter how great your company's credit may be, the bank is going to suspend funding after a while. The bank will recognize that your biggest customer's payment practices are having a negative effect on your business and that is when the loans and lines of credit will dry up. Then what?
Other Credit Options Just Mean Trouble
When the bank officially cuts you off, you may start to get a little desperate. Maybe you start signing up for credit cards in your company's name and use those cards to try and sustain your operations. When the company cards start getting declined, you may put your personal credit on the line and get a few cards in your name. When the collection calls start coming in on those personal cards, that is when you know that you have to find a new way.
Stop The Insanity With Factoring Services
When you discover accounts receivable factoring, you quickly realize that you could have prevented all of those credit problems by utilizing this convenient solution. Those invoices from your largest customers represent the cash you need to run your business. Factoring services turns those invoices into cash and takes the weight of the world off your shoulders.
Before you get involved in the merry-go-round of revolving credit accounts, contact factoring service expert first. You can use factoring services to preserve your relationship with the bank and avoid ever having to sign up for all of those damaging credit cards. Invoice factoring services is an ongoing funding solution that leverages your company's financial strength to give you all of the financial help you need.
Factoring Services Is Fast And Reliable
Factoring services can help you to get back on your financial feet in a matter of days. It only takes a few days to set up your approved account. Once your account is set up, your factoring company can approve invoices within hours and get your cash flow up and going again.
When your business is at the mercy of your largest customer's paying habits, and those habits are slow, then you need to take action immediately. An invoice factoring company will turn those invoices into cash and make sure that you never have to wait to enjoy your company's success.