Lack of money, that is, lack of working capital, can put a small company in an unpleasant situation very quickly (see the previous text hereProof of this is the numerous questions and comments we often receive from our clients and associates. It is no longer enough to be "ready for what is coming".

Regardless of whether it is a small business, a medium-sized enterprise or a large company, everyone must be proactive. One must respond to potential disruptions in the cash flows.

By assigning invoices and receivables to a factoring company, very quickly and simply, you get cash with which you can immediately pay your supplier and import goods, thereby being able to start a new business cycle.

What is the long-term advantage of factoring arrangements?

Factoring is a quick and easy way to grow your business. There is no limit to the number of factoring arrangements, except that it depends on the orderly payment of your debtors. Assuming you have a successful relationship with your customers, the opportunities for growth are real. In addition, as a rule, you also have a positive impact on your bottom line due to the ability to pay your suppliers earlier or in advance, while achieving rebates for advance payments.

Factoring is designed to grow alongside your business without the need for long-term commitments under other loan arrangements that carry greater risk. You can use factoring for years, and invoices, i.e., the number of invoices, or the total amount you finance through factoring, also grow as your company expands its business.

How flexible is invoice financing this way?

Another positive side of using factoring is that you can withdraw cash when you really need it. There will certainly be periods when liquidity will be higher, which is good. But sometimes you will need immediate access to cash and that is the situation when factoring is the best solution. Knowing that you have the freedom to choose which invoices to send to the factoring company will make it easier for you to cover the cracks in your company's cash flow.

The availability of invoice financing through factoring helps companies in their realistic forecasts because they will be less inclined to make some drastic business decisions. The company can easily see when money is leaving and when it is coming back, and thus any shortfalls that might need to be covered. Maybe you just want to factor to improve liquidity during the season or before preparing the stock of goods for the upcoming season. And maybe you want to pay some unexpected bills that have come your way. Either way, with a factoring arrangement, you can control your liquidity in any period.

In unpredictable times, even the best companies must be flexible. And the best financing must be even more flexible. Financing through factoring helps you to be adaptable and agile even in hard times.

If you want to learn more about how FS can help your company grow and provide you with stable liquidity, contact us. .