In the current tough economic climate, many small businesses have come under the gun and found that they could not pay their bills on time. Some of these companies choose to slow down payments to suppliers, increasing the time frame for outstanding bills by an additional 15, 30 or more days. Although this decision threatened to negatively affect their credit ratings, the companies thought they had no other choice in order to survive. After all, since their clients were slowing down when it came to covering due bills, what choice did they have? Should they try to force their clients to pay outstanding bills faster? PMF Bancorp knows there is a better solution
This better solution for such a financial problem is invoice factoring and accounts receivable financing. By not burying your company in debts, invoice factoring with PMF Bancorp can provide the support your business needs in this time of economic downturn. It is not just small businesses or corporate America that fails to pay their bills on time. In the Federation of Small Businesses’ Voice of Small Business Survey, published in 2010, it was determined that a number of central Government and Government agencies made one in three of their external payments late.
A debt-free financing strategy is now available with accounts receivable financing. You can raise funds in order to keep your business operational by factoring your invoices. As a result, you can increase cash flow without having to go to the extreme of pressuring customers via a collection staff. Plus it is so much easier than obtaining a bank loan for a small business. Most banks today like to concentrate on large corporate customers. In contrast, PMF Bancorp specializes in helping small and mid-sized businesses with their working capital needs.
The alternative financing method of invoice factoring means your suppliers will not be paid late. You can maintain these good relationships in tough times while still being able to accommodate new customer growth by extending credit. Loosing a supplier in tough times is not easily replaced. Conventional methods of credit with a traditional bank line have a lot of requirements like personal guarantees, assets, credit checks and the like. In most cases, small businesses might have to wait 30, 60, or sometimes even 90 terms for normal invoice(s) before payment is received.
In contrast, Accounts Receivable Financing helps turn accounts receivable into something like a functioning credit line. Even first time applicants can often get cash in 24 hours from PMF Bancorp, and there are usually limited obligations – with no fees up front, no co-signers needed or accounts to open like at a bank. Small businesses that have found it hard to handle conventional funding requirements benefit from PMF Bancorp’s factoring solutions.
If you want to quickest way to improve cash flow using one invoice at a time, then this is it. How many businesses nowadays are left hanging because they remain unpaid after delivering their products and services? The answer as you well know is a multitude. PMF Bancorp will purchase selected invoices at a discount by first looking at the creditworthiness of the client’s customers. The professional rates of PMF Bancorp are extremely competitive and provide a variety of excellent business services. If your business is in a tight financial bind on account of outstanding invoices and a lack of current cash flow, please contact PMF Bancorp. We can help you today.