Whether a recession happens or not, something is for sure: increasing your business’s financial strength is always a good idea. In today’s post, we share four strategies to help you do just that.
Listen to Your Clients
Everything begins with your clients.
Your clients’ needs change constantly and by being aware of how those needs evolve, you’ll be able to better adapt to new trends in your industry.
What would make your clients’ lives easier? What are their greater challenges right now? What changes would they make to the way you deliver your service?
Ask these questions in person or use tools like email surveys or social media surveys.
Keep an Eye on Your Cash Flow
The term “cash flow” refers to the amount of money moving into and out of your business at any given time.
Having a clear idea of your cash flow is important because it gives you an accurate picture of the situation of your business.
For example, if a lot of money is coming in, you may think that your business is doing great. But things change if you take a look at your expenses and realize that actually more money is going out than is coming in.
Once you have a clear sense of your cash flow, you can decide to take measures such as:
- Consider leasing instead of buying
- Change the way you manage your inventory
- Using receivables factoring to accelerate your cash flow
Review How You Handle Your Accounts Receivable
Set aside time to review the way your business is managing its accounts receivable. Together with your team, provide answers to questions like:
- Are you taking all the necessary steps to ensure that your clients settle their invoices on time?
- What processes that you actually handle manually could be automated?
- Do you have a system in place to review your accounts receivable regularly?
- How can you simplify the payment process?
Take Advantage of Receivables Factoring
As you look to increase the financial strength of your business, receivables factoring is a solution you should definitely consider.
Factoring your receivables means selling them to a third company known as “factor.”
The main advantage of factoring is that the factor pays you immediately (minus a small fee) so you don’t have to wait 30 to 90 days for your clients to pay you. By doing this, you can improve your cash flow,
When you factor your receivables, the factor is responsible for collecting the invoices from your clients. This reduces the load on your staff and frees up time you can devote to other, more strategic tasks.
Plus, if you choose non-recourse factoring, the factor absorbs the risk of any non-payment, further shielding your business from potential losses.
If you are interested in learning more about how receivables factoring can help your business, contact ACS Factors today. Our team will be more than happy to offer assistance and answer all your questions.
ACS Factors: We Turn Your Invoices Into Cash
We are a Factoring company located in Upland, California, with many clients nationwide in the distribution and logistics corridor which includes Ontario, Riverside, Fontana, Jurupa Valley, and Moreno Valley.
Contact us today by email (firstname.lastname@example.org) telephone (909-946-5599), or through our social media accounts on Facebook, Twitter, and YouTube, and start enjoying the convenience of converting your accounts receivable into cash today!