Reduced Risk of Default
With the factoring services helping to improve your cash flow, your risk of default is also reduced. You won’t be waiting for customers to pay their outstanding invoices anymore – you will have cash on hand to meet your financial obligations, like paying suppliers. This both protects and improves your company’s financial stability and credit score.
Streamlined Billing and Payment Process
With the factoring company handling your back-office functions, the entire billing and collections process is streamlined. Your books will be balanced, your invoices will be paid on time, and you will have the cash flow you need to operate and expand your business.
Enhanced Customer and Supplier Relationships
Factoring companies collect your customer invoices with care and professionalism, helping to maintain a positive relationship with your customers while still collecting the money they owe. Plus, with a good flow of working capital, you will be able to pay your suppliers faster, improving your relationships with them. These services improve your financial performance and help you build and maintain relationships based on trust and loyalty with your customers and suppliers.
While the invoice factoring collections process is not a debt-collection service, it can help improve your collections efforts from a number of aspects if you partner with the right company.
Factoring Companies Canada can help you find the best factoring company for your needs, no matter what industry you operate in. Browse our Factoring Guide or contact us today for a factoring rate quote!