Offering Net 30 to Net 60 Payment Terms

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<h1>Offering Net 30 to Net 60 Payment Terms</h1><strong> Author: <a href='http://www.articleseen.com/profile_Rich T.aspx'>Rich T</a></strong><br /><p>Offering payment terms can be challenging when working with small or established businesses. Cash may be king, but it’s also tight and makes you grip it a little tighter these days. Waiting 60 days can seem like a lifetime when you have bills that don’t seem to get on the same schedule. The situation can be exigent (I just learned this word and thought I’d try it out) when a new potential you’re working with seems really promising and then asks for charitable payment terms. A dilemma presents itself as the opportunity to sign the customer and risk a cash flow problem or risk losing the customer’s business altogether. When working capital is not readily available, terms can be extended with the use of bank financing to cover your operating costs while waiting for the customer to pay. Obtaining conventional business financing, like a business loan, never seems to be an easy task. Unless your company is in next to perfect standing, you’d have better odds making regular investments to the Powerball lottery for your financing. The financial alternative to business financing is accounts receivable factoring. Invoice factoring is a great method to increase cash flow and offer terms that ultimately allow you to grow the business. A factoring company will buy your invoices and provide payment up front. Your company will get immediate funding that can be utilized for operating expenses and growth opportunity. The factoring company will hold the invoice after they purchase it. When the customer pays the invoice, the transaction is complete. When used correctly, invoice factoring will enable you to offer terms that will make your customers smile. Businesses find that factoring their invoices has a few advantages. Setting up a factoring account is easier than most conventional financing options and don’t make you want to throw significantly large office supplies items through the window. Factoring invoices gives you predictable cash flow and eliminates the uncertainty of when you’ll get paid by your customers. Factoring lines are linked to your sales and grows as your business grows. Typically, there are multiple services that go along with a factoring account such as credit checking, billing follow-up and account management. These services allow you, the business owner, to spend more time running the business and less time tapping your toe and on the phone bugging your customers attempting to collect payment. Let the factoring company take on that headache for you. Find an invoice factoring program that fits your business model and meets your needs. Once you have established the right relationship you will be able to work more comfortably offering improved payment terms and increasing your business. </p><strong>About the Author:</strong><br /><a rel="nofollow" href="http://www.steelheadfinance.com/invoice-factoring">Invoice Factoring Company</a> <a rel="nofollow" href="http://www.steelheadfinance.com">Factoring Company</a> <a rel="nofollow" href="http://www.steelheadfinance.com/carriers">Freight Factoring Factoring Company</a> <p> Article Source: <a href='http://www.articleseen.com/Article_Offering-Net-30-to-Net-60-Payment-Terms_121959.aspx'> http://www.articleseen.com/Article_Offering Net 30 to Net 60 Payment Terms_121959.aspx</a></p>

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Keywords : invoice factoring, factoring companies, accounts receivable, business factoring, invoice financing,

Category : Finance : Finance