Is Invoice Factoring Right for my Business

Ask anyone in a position of power at your company what it’s like to have to make the all-important decisions and the chances are that they’ll tell you it’s a lot harder than they thought. Being in charge requires responsibility, we all know that, but it also takes someone who isn’t afraid of following their gut instinct and implementing appropriate changes for the good of the business.

Sometimes it’s making the call that you’re going to be part of an overhaul with different staff moving to different departments; or maybe that the tired old machines will be replaced by top of the range models that have just come onto the market at great expense to the company but they’re so confident in them increasing productivity that its a worthy investment that will have almost instant returns on their investment. All sounds great doesn’t it? Although sometimes the decisions can come back to haunt them and there will be the obvious repercussions especially if they’ve spent a significant amount of money trying to implement these changes.

1_fullsizeMoney is, at the end of the day, one of the most important factors for any company whether they’re a multinational corporation with offices all over the world or a startup running out of a small rented office in the city centre or on an industrial estate. For that reason it’s important that you are able to get your hands on not just what is rightfully owed to you, but the kind of funds that can be reinvested into the business in the form of investments and purchases, system upgrades, new furniture or equipment and, of course, staff salaries.

One method of obtaining that money is, of course, to invoice and then chase your clients who have used your goods and services. Not everybody is so forthcoming with that money though and invoice factoring has become one of the most popular methods of dealing with it. Rather than using up the valuable time of a member of the sales team who could be selling more of your goods or services or taking someone from the accounts department away from the daily running of the financial side of the business, you can invest in the services of a company such as Sterling Invoice Factoring who specialise in systems designed to help businesses gain access to a percentage of the money they’re owed and also take care of the invoicing. All the firm has to do is draw up and upload the invoice to the system, and companies like Sterling will take care of the rest.

The question the decision makers have to make is over whether or not it’s the right process to put in place for their particular business at that time. New software always sounds exciting but sometimes it isn’t right at that stage because of the price or the processes involved, or even because they’re currently able to cope with the workload in-house using their own personnel. If the situation reaches a point whereby staff are spending more time on the phones chasing up unpaid invoices, however, then there may come a point where they have to look into invoice factoring as a resolution.