With customers having more influence in their circles thanks to social media, a positive or negative review can reach tens and hundreds—even thousands—of potential customers. How you treat your customers and the quality of service you provide is also vital to the growth of your business.
Switching to invoice factoring is a significant change, so the concern over how your customers receive this is quite understandable. Change is never easy to implement at first, and you may even stumble a few times. But once you and your customers get the hang of the process, it can prove to be an intelligent move that benefits you and your customers.
What is Invoice Factoring?
Invoice factoring, also known as invoice financing, debt factoring, or asset-based lending, involves selling a business’s accounts receivables to their third parties within 90 days at discounted rates. In exchange for immediate working capital, the buyer assumes the rights to receive the payments for the invoices.
If you routinely have a lot of invoices outstanding, causing your cash flow to suffer, we recommend working with an invoice factoring company. Instead of having to chase late payments, you’ll be able to focus on other areas of your business by letting someone else handle your credit control and payment recovery.
How Invoice Factoring Affects Customer Relationships
Doesn’t an improved and predictable cash flow sound like a good enough reason to invest in? However, beyond its ability to increase the chances of your business surviving and reducing your business ov