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How Your Customers Could Help You Obtain Short-Term Financing

How Your Customers Could Help You Obtain Short-Term Financing

Nearly every company experiences short-term financing needs from time to time. There are multiple options for covering immediate needs, including small business loans and credit cards. But there is one particular form of short-term financing that allows companies to leverage their customers as assets. Of course, were talking about account receivable factoring.

Thales Financial specializes in account receivable factoring. It is a form of short-term financing through which we buy outstanding invoices as assets. We pay a certain percentage of the invoices’ value upfront, then pay the rest – minus our factoring fee – when the invoices are paid.

What makes account receivable factoring so attractive for short-term needs is that companies do not even need stellar credit to be approved. Approval decisions are made primarily on the strength of the customers whose invoices are purchased. So if you have a strong customer base known to pay its bills on time, account receivable factoring is definitely on your list of options.

Customer Relationships Matter

Having access to account receivable factoring is one reason to cultivate strong customer relationships. The stronger your customer relationships, the more invoices you will have available for factoring. Still, we encourage you not to think of customers as mere financing assets. They are actually the lifeblood of your business.

Customers being crucial to your business is obvious. They are fundamental to making money. Without them, there would be no business. And yet it is easy to take customers for granted. It’s easy to forget that business is about them. And when a company forgets, bad things tend to follow.

Whether you apply for short-term financing through Thales or not, we want to encourage you to take care of your customers. Give them the products and services they expect supported by fair pricing and above average customer service.

Good Customers Pay Their Invoices

Not only are customers the lifeblood of your business, but they are also the source of your cash flow. It is yet another reason why you want to cultivate strong customer relationships. To be blunt, good customers pay their invoices. That is exactly what you need to maintain positive cash flow on a consistent basis.

There are times when cash flow is interrupted by external forces. A piece of equipment breaks, and you need to replace it. A new regulation kicks in and you need to spend money on compliance. Whatever the case might be, interrupting cash flow can interrupt your ability to conduct business as usual. But because you have cultivated strong relationships with your customers, you have invoices you can turn into immediate cash.

Those same customers who have a habit of paying their invoices on time can help you get through your immediate cash crunch by way of account receivable factoring. You sell their invoices to us for cash up front. Your immediate financing needs are met, cash flow is restored, and business goes on as usual.

Thales Is Ready to Assist You

There is no way for us to know how much experience you have with account receivable factoring. But whether you are new to the concept or a regular user of factoring services, we stand ready to assist you. Let’s talk about how account receivable factoring can help you meet your short-term financing goals.

In the meantime, remember how important your customers are. Without them, your business will not survive. Customers are both the lifeblood of your business and an asset you can leverage to keep things moving forward when cash is tight. You owe it to both your customers and your business to cultivate and maintain the strongest possible customer relationships.