I worked for a small business firms which produces clothes for the various clothing lines. These clothing lines outsource some of their productions to us and in return we provide them with the manpower as well as some of the products. I have been in this company for quite some time and as part of the accounting team, I have observed that some of our clients run a credit line. My company, as part of our efforts to build a relationship of trust with our clients, allow them to pay their invoices a few weeks after their order has been fulfilled. This practice seems to be working well since our clients keep on coming back to do business with us. The only downside is that the flow of capital and revenue is a little too slow. There are times when we have to turn down some orders because we do not have enough capital to purchase the materials we need or to hire added personnel to do the job. This is when I suggested to my boss to check the Interface Financial Group. I introduced him to the process of factoring and he asked me. “can factoring solve cash flow problems?” My answer is yes. I explained to my boss the process of factoring wherein IFG will provide us the funds we need in exchange for our unpaid invoices. They will be the ones to get the funds from our invoices once they are ready to be paid by our clients. As a result, we are able to get our hands to those much needed funds without the need to wait for several days.
How the Interface Financial Group Solved Cash Flow IssuesPosted March 12th 2013 at 5:10 pm by admin
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