Receivable Management Services and Invoice Factoring
By Bernard Linney
Nowadays, many companies are outsourcing the work of collecting their debts to receivables management services. Collecting the money from your debtors can be a big headache. If you are engaged in a business, you will not have enough time to go behind your borrowers to get back the money you have lent out to them. This is where receivable management services come to your rescue. The trained and experienced staff of these services will collect your debts competently and quickly. In fact, these people have special training and expertise to recover debt from borrowers.
Often, your customers may not be able to pay off the money they have taken from you. During these times, you too would not like to spoil your relationship with your highly valued clients. When you are running a business, a continuous cash flow is important. It becomes difficult for you if your clients do not pay you their outstanding amounts. If they give you the money at the right time, you will be able to invest it in your business. Therefore, you can get back the outstanding amounts from such clients using these management services. With the help of experienced management services, you can maintain healthy relationship with your customers.
When you outsource your collecting work to the expert staff, you have to send them the supporting documentation like bills, purchase orders, invoices etc. The account executives will check and verify the documents and give a notice to your customer. They will also forward your invoice to your clients. Usually, these receivable management services will advance about 85% of your invoice amount within 24 hours. A reliable company will have a lock box, and your customer will deposit a check made in the name of your company in the lock box.
These receivable management services usually charge a fee known as factoring fee. They will charge the factoring fee from your invoice and then remit the balance to you. You may feel that using receivable management services may add to your financial burden. However, it is not at all like that. In fact, it will help to ease the burden of collecting your existing debts from customers. Bad debts affect your business. Therefore, it is better to use a factoring process to recover your debts.
Using receivable management services, you will be able to run your business smoothly and efficiently. So use a good receivable management service for your company. Bernard Linney and HomeCoast Capital work with companies all over the U.S. in establishing profitable businesses in any economy.
Bernard Linney [http://www.bernardlinney.com] is an expert in accounts receivable management and maintains offices throughout North America to provide financial solutions to small and medium-sized businesses. His company is a nationwide commercial lender that offers a full suite of capital solutions for new and existing businesses. His goal is be able to assist with your immediate financial needs, as well as develop a long-term partnership that will grow with your company as your needs change.
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