To maintain an excellent credit history, you first need to stick to a budget so you know exactly where all of your money is going. What’s more, you need to make sure you keep daily note of every single business expenses.
Invoice Discounting Referrals Help Increase Sales
Today everyone is being cautious about spending or parting with their cash. For consumers for example, retailers are forecasting a challenging holiday season with expectations for further reductions in sales following on from its first quarter results down 11 per cent.
Facing similar challenges are salespeople who sell to small and medium sized enterprises (SMEs) – who also face the added cash flow challenge. They must wait longer to get paid by their customers, who are dragging out payments up to 60 days, according to Dun & Bradstreet’s most recent data. But why should SMEs be hurt by the laggard payment behavior of their customer base, particularly when those customers are large corporations?
If a customer has been placed on “stop credit” because they have gone over their credit terms as a result of slow payments from their own customers, then what is a sales person supposed to do? This represents significant lost sales because the SME customers are still solid businesses, but have been penalized because they have slow paying customers from larger companies.
Invoice discounting can help. This age-old financial service can help SMEs accelerate the collection of current yet slow to be paid receivables. When an invoice is sold at a discount to a factoring company, the SME can get access to the cash that is trapped in the accounts receivable ledger - fast. This cash will then be paid to the suppliers who are owed money. It is the foundation of cash flow.
Today, savvy sales people are starting to refer their SME clients to invoice factoring companies like IFG so that they can meet their own sales targets. These invoices with large companies are exactly what the invoice discounting companies are looking for in terms of credit worthiness.
For more information about invoice discounting call The Interface Financial Group (IFG) at 1300 957 900.