With customers having more influence in their circles thanks to social media, a positive or negative review can reach tens and hundreds—even thousands—of potential customers. How you treat your customers and the quality of service you provide is also vital to the growth of your business.
Switching to invoice factoring is a significant change, so the concern over how your customers receive this is quite understandable. Change is never easy to implement at first, and you may even stumble a few times. But once you and your customers get the hang of the process, it can prove to be an intelligent move that benefits you and your customers.
What is Invoice Factoring?
Invoice factoring, also known as invoice financing, debt factoring, or asset-based lending, involves selling a business’s accounts receivables to their third parties within 90 days at discounted rates. In exchange for immediate working capital, the buyer assumes the rights to receive the payments for the invoices.
If you routinely have a lot of invoices outstanding, causing your cash flow to suffer, we recommend working with an invoice factoring company. Instead of having to chase late payments, you’ll be able to focus on other areas of your business by letting someone else handle your credit control and payment recovery.
How Invoice Factoring Affects Customer Relationships
Doesn’t an improved and predictable cash flow sound like a good enough reason to invest in? However, beyond its ability to increase the chances of your business surviving and reducing your business overloads, invoice factoring can help you with arguably the most critical aspect of your business: your customer relationships.
The financing part of a company hardly seems like an essential aspect when it comes to building customer relationships, but it is to staffing companies. The customers and members of a staffing company can greatly benefit from utilizing invoice factoring—using the proper practices lead to building trust, loyalty, and overall satisfaction.
Working With an Invoice Factoring Company
Invoice factoring is undoubtedly an essential factor in helping you maintain healthy relationships with your customers. However, you can’t do it alone—it’s important to work with a professional factoring company so that you can reap the benefits of investing in invoice factoring.
For the best quality of service, we recommend reaching out to a factoring company that understands the value of your customers and delivers excellent service founded on expertise and knowledge.
When looking for a factoring company to help you form and grow your customer relationships, make sure to work with an organization that places great importance on communication. Since you’ll be using invoice factoring in every stage of development, they must make sure to relay everything you should know about each step for a problem-free process.
If you want to create and improve your customer relationships, it would be wise to invest in invoice factoring. Some customers may have concerns about the change at first, but as long as you work with a reputable factoring company, you and your customers are sure to benefit from it!
Are you looking for an invoice factoring company to help your business? Then, our team at Porter Capital may just be who you need! With reduced paperwork, we aim to minimize frustration and streamline access to the funds you need to grow your business. Apply now to get started!