Accounts Receivable Factoring Allows you to Take Advantage of your Biggest Asset (Part 1)
Written by Wade Henderson on February 6th, 2010
Take a good look at your detailed financial analysis and you may be in for a surprise. Many business owners are not aware that between 40% and 70% of your company assets are tied up in your Accounts Receivable. What if they were all of a sudden gone?
Exactly, a significant reduction in the size of the company with the resulting crisis since the disappearance of this asset, liabilities do not disappear on the other side of the balance sheet.
Oddly enough, many companies will overlook or abandon their accounts receivable. This is the very essence of the company\’s existence. Payments just sitting there waiting to be collected. The work has already been done to provide the service and all that needs to be done now is to collect.
Accounts Receivable Factoring will allow you to stop waiting for you to change your sales on credit into Working Capital.
All the Accounts Receivable that is tied up on your balance sheet and income statement represent 80% of your sales, but this is of little good to you until they have been converted into Working Capital. Accounts Receivable Factoring will do exactly this for you.
Oddly enough, many companies look at Accounts Receivable Collections as a nuisance and a bother. This task is too important to be looked upon with such little regard. Using Accounts Receivable Factoring will not only free up your assets but will also have a Professional Accounts Receivable Management Firm handle the accounts with professionalism and diligence.
Oddly enough, this undesired department of the company will be left to resolve the problems that customers have with their product or service. They are essentially an internal collection company, not customer service, but they will come across many opportunities to save accounts and even create new once.
Unfortunately, credit and collection areas do not have a profile of customer service and handling complaints in order to address these scenarios and what is more, the way it measures its performance does not help at all in the proper handling of relations with the internal and external customers as they invariably are evaluated for days on average it takes receivable (DSO or Days Sales Outstanding) and the percentage of past-due loans (% Bad Debt) and this means that no matter what you have to do, collect as much as possible regardless of the customer relationship.
Accounts Receivable Factoring Companies are Accounts Receivable Management Companies and this is what they do every day. This is their business and they have the expertise to handle your accounts effectively and professionally so that you can concentrate on running your business.
Wade Henderson – very Professional – 15 yrs in the Business Finance Field – Gets the deal done. IMMFinancial.com Accounts Receivable Factoring Accounts Receivable Financing
This entry was posted on Saturday, February 6th, 2010 at 8:05 am and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Tags: A R Factoring, Accounts Receivable Factoring, Accounts Receivable Financing, AR Factoring, Commercial Factoring, Commercial Line of Credit, Discounting Factoring, Finance, invoice factoring, Line of Credit, Receivable Financing, Small Business Factoring
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