Top 10 Benefits of Invoice Factoring
If you have a business which requires working capital for bill payments, funding, or discount negotiations, then invoice factoring thailand is something you must quickly consider.
Invoice factoring is selling your accounts receivables to a factoring company. This means the Factor company purchases your accounts receivables and title them by their name and collect the payments on the due date. Such companies immediately fund the cash payment against the invoice and collect the amount from the customer/buyer and charge a factoring fee.
Let me introduce 10 Benefits of Invoice Factoring
- Quick and Easy Cash
Invoice factoring in Thailand provides you quick funds within 48 hrs of approval of your invoices. Initially, set up may take up to 10 days due to documentation. However, this is much better than waiting for weeks for Bank Loans.
- Floating Cash
Invoice factoring is very different from Bank loan, hence, doesn’t affect your liability side of a balance sheet with liabilities.
- Flexible Terms
There’s no limitation with the number of times you can sell or factor your Invoices. The purpose of Factoring is growing funding as well as sales.
- Low Factoring Fees
Depending upon the Industry Type, the volume of goods supplied, number of Invoice Factoring, Credit worth of customer, or the advance rates a fee is charged.
- Manage Funds
One of the benefits of Invoice factoring companies is that they do not micromanage, unlike the clients. You can utilize the funds as per your requirements for assets or anything.
- NO Long Waiting
Through Invoice Factoring process, you will not have to wait for months for your client to pay so that you can make further payments to your vendors, credits or any payrolls. With this, you can work freely and with no stress.
- Save or Make Money
Factoring helps you to increase the overall profits and floating funds. Here you can also take advantage of advance payment discounts, further, you can discount with your own suppliers, etc. If you use this technique wisely, you can not only save money but can also make more money.
- Financial History Not Required
You will not have to share your business financial history with Factoring Companies and it is also not restricted to only business pioneers. The focus of factoring companies is to check the credibility of the Customers who will make the payment than you been the supplier.
- Increase sale and New Customers
You can also increase your sale by offering credit terms to bigger customers while not worrying about the cash flow. In fact, the factoring company can also help you with the creditworthiness of the clients you are targeting to avoid risk.
- Professional Assistance
Factoring companies look after all the paperwork, processes or collections which are required to be done. Hence, the time investment is reduced to a large extent.