Finally, your concerted marketing efforts are paying off. You’ve landed a big contract with a large corporation or even the government. Now you are ready to play in the big leagues. Well, save for one small problem. The client was so impressed that they place an order that was twice as large.
You only have sufficient cash to meet half the consignment, and there’s no way you’re letting the client in on this development. With the help of invoice factoring online service providers, such as TAB Bank, a situation like this will no longer pose a problem for you.
Quick access to cash
If your clients have a solid reputation and have a great history of settling their bills, you will have access to the cash quickly. Most factoring companies can avail the money necessary to fund your invoice within a day. Depending on the company’s policy, they can fund you up to 90 percent of the total invoice.
That way, you can meet your order in full and make your clients happy. However, be sure to read the terms of engagement before making a deal with an invoice factoring company. You want a lender with excellent interest rates, lest your profit margins will be quite small.
Enhanced business reputation
Big corporations or even the government often overlook startups and small businesses when qualifying suppliers. In most cases, such firms don’t have sufficient capital to fill an order and stick out the 30- to 90-day waiting period.
With this service, you are no longer funds limited and can take on a substantial order and fill it with no problems.
Meeting your order in a timely fashion boosts your reputation and increases the chances of repeat business. Again, it gives you a great performance history, which could result in your company being bumped up to the level of a preferred service provider.
Being cash-strapped when looking to fill an order can ruin the reputation of your business. With the help of a factoring company, you can fill every order without hurting your business' reputation.