How Invoice Factoring Benefits Office Furniture Suppliers
Most large corporate customers buy their office furniture on term credit. This means that the office furniture supply company needs to be able to provide the product quickly, but must wait up to 90 days to get their invoices paid. This can create a working capital problem for companies that don’t have substantial cash reserves and need to be paid sooner. One way to minimize is this problem is to ask the customer for earlier payment terms. Invoice factoring is a better alternative for cash flow solutions.
Factoring solves this working capital problem by providing an advance on your invoices from credit worthy customers. This gives your company the liquidity it needs to pay suppliers and other obligations. A factoring company provides the advance and holds the invoices as collateral. The factoring transaction settles once your customers pay their invoices.
To qualify, your customers must have good commercial credit since their credit is the collateral on the transaction. Your company also must:
- Be free of legal and tax problems
- Invoice for completed work or work segments
- Have unencumbered invoices
Factoring lines grow with your revenue, enabling you to capitalize on growth while minimizing cash flow problems.
If you are looking to free up your cash flow to fund payroll or to simply purchase material for the next job, contact us for a free consultation and quote. We will never charge you to talk to us. GMA Factor does not sign you on to any long-term contracts. Our agreements allow you the flexibility to factor what you want, when you want. You can pick and choose the accounts that you want to factor.
Clients we help…
- Start-up businesses
- Fast-growing companies
- Work out situations
- We can service virtually any industry
Our services include…