Why Factoring for Distributors & Distribution Companies is the Right Choice
The distribution industry is a sprawling and complex world. To be successful, a company must always be on top of deliveries, payments, returns, and invoices. This is no mean feat and it is made harder by customers and clients with sluggish transaction habits.
Unfortunately, there is often nothing that can be done about slow paying customers. The law allows all invoiced companies a certain amount of time in which to process and submit payment. As long as the transaction is completed within this time frame, there are no legal means with which to hurry it along.
This is why many distribution businesses are now turning to invoice factoring. With the right factoring for distribution service, the money from goods sold can be in your hands in days, instead of taking the best part of a month to arrive. At Capital Funding Solutions, we specialise in factoring for a number of different industries.
We serve distribution businesses across Florida, Texas, New York, Georgia, Michigan, Virginia, and a wealth of other locations. It is our job to be the stepping stone in between you and frustratingly slow clients. It is our duty to make invoicing easy.
The Basics of Factoring for Distribution Companies
When it comes to factoring for distributors, the key should be flexibility. Once again, this is a complex industry and the market can change very quickly and with little warning. So, it is essential for your factoring agent to be willing to work for you; to be focused on helping your distribution network run smoothly.
Whether you handle food, drinks, tobacco, textiles, or electronics, factoring for distribution is a straightforward way to access your cash. Imagine that you are used to dealing with a customer who is reliable but always takes a long time to balance invoices. You do not want to alienate or lose them, but you are keen to free up the capital earned.
You can do this by selling the invoice to a factoring agent. This agent or firm then works with the customer to recover the invoice sum. So, once you have been paid for the transaction, your part in the process is essentially over. You can consider the invoice paid and focus your attention on another part of the business.
The Benefits of Factoring for Distribution Companies
The factoring agent makes a profit by taking an agreed percentage off the invoice total. This means that, if you enter into a factoring arrangement, you are agreeing not to be paid the full total of the original transaction. This is very important. The exact percentage should always be clearly approved, by yourself and the factoring agent, before any contracts are signed.
The customer or client pays the invoice total in full and the agent gets to keep the difference. The benefits are evident for all parties. The lead business gets their hands on the money from invoices quickly and with little fuss.
The customer isn’t harried or forced to rush through their payment process. And, the factoring agent makes a profit too. With factoring for distribution, everybody gets exactly what they need, when they need it.
Factoring For Distributors & Factoring For Distribution Companies in Florida, Texas, New York, Georgia, Michigan, Virginia…