In previous posts, we have reviewed the advantages that Factoring of Accounts Receivables offers to different industries. But what about the benefits of Factoring for wholesale and distribution companies?
By giving these organizations quick access to cash, Factoring solves some of the most common headaches that owners of wholesale companies face day in and day out.
Simply put, Factoring means selling your unpaid invoices to a company called Factor. The Factoring company pays you immediately and handles the collection of the receivables in exchange for a small fee. The best part is that with Factoring you don’t have to wait 30 to 90 days for your clients to pay you. You get cash fast when you need it so your wholesale and distribution business can keep moving forward.
Manage Seasonal Fluctuations
Seasonal shifts in business are one of the main challenges faced by wholesale and distribution companies. A slow business cycle can affect your cash reserves, a situation that most owners prefer to avoid. Luckily, Factoring makes it easy for you to increase your working capital according to the needs of your company. Instead of letting their unpaid invoices gather dust, smart wholesale companies take advantage of Factoring to get the fast cash they need to make payments or seize new opportunities.
Get Better Prices From Vendors
It’s no secret that buying inventory or materials in bulk often results in lower prices and more attractive profit margins. The difficulty often lies in getting the capital you need to be more strategic with your purchases. Factoring allows you to do just that. The leverage you enjoy as a buyer with cash on hand results in better prices, faster deals, and a stronger bottom line for your business.
Avoid Debt
Factoring helps wholesalers avoid debt and protect their credit. How? It’s simple: when you Factor your unpaid invoices, you are not taking out a loan but simply selling something that belongs to you. Steering clear of the debt trap frees you from the stress of monthly payments and preserves your credit score. Furthermore, unlike other forms of financing, Factoring doesn’t involve giving up equity, ensuring that you retain total control of your business.
ACS Factors Helps You Turn Your Invoices Into Immediate Cash
At ACS Factors we help you get the capital you need to move your business forward. We are located in Upland, California, and have many clients in the distribution and logistics corridor which includes Ontario, Riverside, Fontana, Jurupa Valley, and Moreno Valley.
We take Factoring to the next level with fast approval times, no deposit or application fees, easy-to-increase funding limits, no minimum funding, and more!
Contact us today by email (info@acsfactors.com), telephone (909-946-5599), or through our social media accounts on Facebook, Twitter, and YouTube, and start converting your accounts receivable into cash today!
