Credit Risk Management
Tailored payment terms with invoice preparation contribute to overall credit risk management. When credit risk management is taken on by the factoring company, invoicing and payment terms are better tailored to lessen risk.
Professional and timely invoicing from a third-party, such as a factoring company, means invoices are more likely to be paid on time. Professionally prepared invoices with professionally assessed payment terms, tailored to industry norms and client and customer needs, are less likely to result in defaults on payment and contribute to a business’s financial security.
Flexible and tailored payment terms can improve a business’s customer relationships. If a customer needs longer to pay in full, it will not impact the business’s cash flow. This makes it easier for businesses to maintain cash flow and access funds without pressuring customers to pay up earlier or in cases where they need more time.
If you’re looking for invoice preparation services from a factoring company, be sure to check out our Invoice Factoring Guide discover how to find a factoring company that offers this service and other helpful features.
You could also contact us for a factoring rate quote.