Do you provide an early pay discount option to your customers? A lot of companies do offer 2% net 10 or more.
The problem is that many times your customer will take the 2% and not pay in 10 days. It is obvious that increasing your cash flow is the objective; however your customers probably need to watch the cash flow also.
If you are offering an early pay discount you should look into factoring. You may find out that your discount is not much different than what you offer already. Plus the terms do not change for your customers and you are guaranteed the cash within 24hrs with a factoring account.
You can also use the constant cash flow to take early pay and volume discounts from your vendors which may wipe out all of your fees!
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Have questions? Call 888-603-0055!
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