How to Talk to Your Customers About Factoring
Customer reaction is a concern for many business owners who are considering Invoice Factoring as a finance strategy. While you may be worried that your customers will view this relationship as a weakness, establishing a line of credit is actually a positive statement that shows your business is growing and has a stable financial backing to support your growth. Factoring also allows you to extend longer payment terms, an additional benefit to your clients.
Leveraging your accounts receivable to generate cash is a financing method used by very large corporations worldwide, such as Shell Oil, Georgia Pacific, and IBM. It is likely that many of the businesses you service already deal with Factoring Companies and are familiar with the method.
What do I tell my customers about Factoring?
At Capital Business Funding, we make the transition to Invoice Factoring seamless and easy. We value your customers as if they were our own and ensure your business/client relationship will not change. Below are a few suggestions on how to talk to the customer that may not be familiar with Factoring.