Tag Archives: rates
Why Invoice Factoring is Important in Food Distribution
Invoice factoring, which is also known as accounts receivable financing, is an important part of many different industries, including the food distribution industry. In the world of food distribution (just as it is in most other industries), cash flow is a serious problem that in its extreme cases, can even sink a company. In other cases it can prevent expansion and growth, which is not a good situation to be in either.
Here are 3 reasons invoice factoring is an important service to have in the food distribution industry:
1. It helps fight back against the rising cost of fuel. It’s pretty much guaranteed that you will have to raise your rates frequently as the cost of fuel goes up, but when do while you are waiting for those new rates to take effect? You need to announce the rate increase and then wait a short time, but your business can’t afford to wait. This is where invoice factoring comes in to fill in those gaps. By leveraging the power of the invoices you have out that have not been paid yet, you make it possible to continue paying your fuel bill until those new rates kick in.
2. You receive the flexibility to extend payment times for your vendors. Sometimes in order to get a higher price for the goods you are distributing, it may necessary to extend your vendors’ payment times. There is a growing demand for extensions, but if you do not have the line of credit offered by invoice factoring, then you will be unable to offer this service. Then you will be cheating yourself out of a high volume of income because you can’t extend payment times in return for higher payments on the back end.
3. New distributors who are still growing will have to deal with lower profit margins as they begin to prove themselves to their customers. This makes working from check to check a reality, but it certainly isn’t a good reality. What can you do if you get offered a major contract and then aren’t able to fulfill it because you don’t have the cash to do so? You will be missing out on an important opportunity to expand and grow your business if you don’t have the financial advantage of invoice factoring to help you out.
Case Study
GTA Fruits is a distributor of tropical fruits that works closely with numerous major grocery store chains. By managing and financing GTA’s accounts receivables, the company has been able to grow rapidly, enjoying not just growth but also a greater need for cash flow, which is growing exponentially.
Financing for the Food Distribution Industry
Invoice factoring has worked in numerous different industries. Invoice to Cash, also known as ITC, actually specializes in helping small to medium sized business grow as they leverage those unpaid invoices. Low risk small business financing options include:
– Cash right in the moment you need it, whether it’s to fund the next contract, enable vendors to pay higher prices to you later, expand the business, or just pay your bills.
– Accounts receivable administration will improve your cash flow by placing someone in charge of managing it more efficiently. Collection becomes a breeze as well when you take steps to improve the workflow of this project.
– A transportation management system enhances your ability to serve your customers, thus raising your bottom line.
By combining these three services, you are sure to discover the growth that has been just around the corner for so long. Leverage your invoice so you have the cash to fill the next big order.
Compare Credit Cards So That You Can Chose the Best Deal for You
How would you compare credit cards to make certain you are receiving the best deal? There is absolutely no easy method of doing this. The average customer is inundated with bank card offers regularly. Through the email messages to your snail mail, the firms prefer you to choose their products so they try everything they can to get you decide they have got the superior deal.
The actual comparison won’t end up being the sum of credit they’re providing. This can be absolutely the wrong approach to pick out credit cards. The bigger limit credit cards might have overpriced rates, high annual service fees, shorter grace periods along with any number of elements that are not valuable features to enjoy with a credit card.
Additionally, it is wise to read the small print. Sometimes you may well be convinced you will get the best value and there could be obscured costs which you were unaware of with out reading the fine print. It doesn’t do much good to say you did not know about them later. After all, you are not supposed to sign without the need of reading first.
What kind of fraudulence security does the credit card you are considering include? When you compare credit cards this is critical. If you’d lose your current credit card or maybe a person would swipe it, you don’t wish to be liable pertaining to the expenses they’re running up. The less the total amount you are liable for, the better.
As you check out distinctive credit cards, the one that may reward you the most will likely be one used for the belongings you usually buy. The bank card ought to be affordable. What this means is absolutely no excessive interest rates. The rewards needs to be the most suitable ones you may get. Cash rebates for making use of the card is unquestionably on the list of more advantageous features of today’s bank cards.
The most effective methods to compare credit cards is to save yourself from being seriously affected considering the promotions. Many of us have viewed the marketing campaigns with the low percent interest rates as well as the benefits that may be gained. Rest assured, every thing isn’t as rosy as they picture it.
Other incentives such as show seats and meals aren’t cost-free either. The if you buy one, get one cost-free is probably a show you would never have wanted to check out anyhow. Thus, in all actuality, you’re spending far more in lieu of getting any in return. Compare credit cards smartly and select one which is going to help you overall.