Accounts Receivable Factoring
Why your customers won’t care if you factor your invoices
Accounts Receivable Factoring - From time to time a prospect will voice concern that his customers will view factoring negatively. This is generally due to the mis-perception that factoring is viewed as a weakness and that it may hamper future business opportunities.
More often than not, our customers factor their invoices to take advantage of new opportunities to grow their businesses. The opportunity cost of not factoring is lost revenue and stagnant growth.
In talking with Accounts Payable Managers from hundreds of companies ranging in size from the Fortune 1000 to those that are privately-held, we have found that the opposite is true. Rather than view factoring as a weakness, AP understands that the vendor can simply not wait 30 to 60 days (in some cases more) for invoices to pay, especially if they run weekly payroll. Furthermore, they tell us that they talk to other factoring companies across the country and they are quite familiar with the process. Thus, invoice factoring is not an issue.
For many small and medium-size businesses today, obtaining sufficient bank financing to keep pace with growth is a challenge. That is why many business owners turn to Caprock Funding as a resource to supplement current bank lines of credit or to get themselves on the road to eventually transitioning to more traditional lines of credit.
Call or email are us with your Accounts Receivable Factoring needs - we have exceptional factoring rates for our clients.