How Accounts Receivable Factoring Can Help Cable Installers And Cable Sales Companies

How AR Factoring Can Help Cable Installers & Cable Sales CompaniesAccounts receivable factoring is an excellent way for businesses to generate money for both maintenance and growth. All companies need cash. This is business basics 101.  There will be times when a company can wait and other instances where there requires a quick influx of money.

A company may not be able to wait and require money immediately to stay afloat. Those who invoice their clients are often more prone to these types of cash flow problems than those that don’t.

Because they often don’t receive the payment right away, they have to rely on the money they have on hand. If this doesn’t amount to much, this can be quite problematic.  Accounts receivable factoring is an ideal option for many companies. In this article, we will discuss why it might be a great alternative, specifically for cable installers and cable sales companies.

Cable installers and cable sales companies must put up the money for jobs they service. They have to purchase all of the materials and pay their workers before they invoice their clients. It may take anywhere between 30 and 90 days before they receive payment.

This can cause a great deal of financial strain. Not only must a cable installation or sales company come up with the money to complete a job. However, they also have fixed expenses that must be paid. With no or very little money coming in, it can be difficult, even impossible, for a company to meet all of their financial obligations without going into debt.

This may be the case when a company is only considering traditional ways to handle a lack of finances. One option which many tend to look over is accounts receivables factoring. This is an excellent option for many cable installers. It allows them to earn money from their receivables without having to collect on them.

Accounts receivable factoring works like this, a company sells their receivables at a discounted rate, typically between 70% and 90%. This money is paid up front and in cash, providing companies with the money they need to meet whatever obligations they have. Instead of waiting until their customers receive their invoice and then pay it, they can get money even before the completion of any work.

This allows companies to purchase materials and pay for manpower prior to starting a job. This can be extremely helpful for cable installers or sales companies. Receivables factoring provides them with the money they need to buy cable and pay for servicemen (or women) without going into debt.

While debt can be helpful and many times is seemingly necessary, when a company doesn’t have to borrow money, they shouldn’t. Debt carries risk and if it can not be repaid may result in the repossession of assets, lawsuits and even the failure of one’s business. Accounts receivables financing allows companies to raise money without the additional burden of debt.

Best Factoring Company Get the Cash you need Today

How Accounts Receivable Factoring Can Help Cable Installers And Cable Sales Companies

Apply Now

Money When Your Business Needs It Most!™

  • Get Cash Today

    Best Factoring CompanyGet the Cash You Need Today

    Just fill out this quick & easy form!

  • This field is for validation purposes and should be left unchanged.
Get Cash Today
  • Quick Contact Form
  • This field is for validation purposes and should be left unchanged.

Back to Top

Best Factoring Company

Get Started Immediately