Receivables Factoring in the Manufacturing Industry
Manufactures of all types make product and sell them on 30 to 60 days terms. Cash flow gets tight when you have to pay your employees, raw materials and overhead before getting paid from your customers. Invoice factoring allows you to get paid up-front once you’ve made your product and invoiced your customer.
Receivables factoring improves your cash flow because you don’t have to wait 30, 45 or 60+ days to collect your receivables. You get the cash upfront so you can pay for supplies, payroll and other operating expenses.
Working with an factoring company will help your small business improve its cash flow. You’ll get cash flow, receivables management, credit services and a business partner to help you through the tough times.
Rather than sinking into debt and making loan payments, invoice factoring is similar to a bank line of credit. You also get to enjoy the many benefits of receivables factoring that banks don’t offer.
Factoring companies can approve your factoring application within several business days. Often, you can get your first funding within 5 to 10 days, making invoice factoring a quick and easy process.