Cash Flow Crisses

Sterling Commercial Credit Invoice Factoring
October 2014

Many successful businesses face cash flow challenges each week juggling the short term assets and short term liabilities. Often times this is a simple comparison of Accounts Receivables and Accounts Payable and the Checkbook. If Sales is the blood of a business than cash flow is the heart of the business. Having access to cash is critical to the success of any business manager. Time and time again I meet Entrepreneurs who have large projects and purchase orders in hand, but not enough CASH FLOW to execute to start working on them.

Bank loans may be a solution but often times bank debt remains on the balance sheet and the business owner have highs and lows in the cash cycle and dealing with a Bank is often time consuming and often times they can’t forecast the Entrepreneurs needs over the next 90-days let alone the next 52 weeks. Another common characteristic of working with the local banker is they will review the last three years of your tax returns and set your loan amount based on historical events and give no value to growing companies or companies that are just starting up.

What is the way out then? What most businesses, small or big, are going for is commercial factoring services. Instant cash in not a complicated process – that is what has made factoring so popular among the businesses of all sizes. Let’s take quick look at the advantages of commercial factoring:

Cash flow stability: Commercial factoring has proved to be a very effective means to stabilize cash-flow. Businesses, whether small or large, often suffer from unpredictable and unstable cash-flow. Factoring services have helped them bring stability and predictability to their checkbook.

Less expense: When you buy factoring service from a factor, you can save a number of other expenses. Factoring services often take into account a few responsibilities that relieve you of a considerable amount of time, effort and money. With a solid factoring partner such as Sterling Commercial Credit you receive two additional support credit, collection, and invoice processing experts. Often time’s clients can reduce overhead or minimize the tasks in evaluating credit limits for your customers and receive your invoices payments expeditiously to allow for growth and leveling out of your CASH FLOW.

Instant money: Banks take a long time to approve a loan and often require government SBA guaranty adding 2 to 3 months to the approval process. If they do approve the loan it’s a ONE TIME loan and often is for far less than the needs of the business future growth. On the other hand, in case of commercial factoring you get the money as quickly as 24 hours after you execute the invoice and the goods or services can be verified by a trained Sterling invoice analyst. In the current business landscape its very competition and time is money. The ability to have an invoice factoring in your financial house is value added in building a disciplined fiscal foundation.

Shop Rates & Compare Service Offering and Software Interface: When shopping for a commercial factor recognize not all factors are created equally. In fact, nearly 80% of the factors on-line are actually brokers for small to large factoring institutions. Before signing a proposal or agreeing to a teaser interest rate be sure to have an attorney read all the fine print and look for tricks and bait and switch tacticians. Many factors change you if you don’t use a maximum number of sales each month. Others will change you a large sign-up commitment fee or exit fee if you don’t give 90-days’ notice with auto renewal fees in the thousands of dollars. Others are understaffed or are 3 person operations and subcontract their service to a third party. Sterling has been in business for over 10-years and build their pricing structure on a simple KISS – Keep It Simple Sterling. We are proud to offer our factoring clients: No wire fees, no termination fee, no early exit fee, no minimums, no ucc fee, no postage fee, and no surprises.

Teamwork on A/R collection: When you choose commercial factoring services, they assist in the collecting the payment from your customers. Your responsibility is to deliver the products or complete the work for which you were hired. The factor will build a custom servicing plan for your customers to ensure there is a value added team approach made in handling your account each day. Sterling is a 52 week financial partner and many of our clients recognize we are an extension of their accounting department. With cutting edge technology and well trained relationship managers and invoice and collection analyst The Sterling Way is the best plan period.