Protecting Business Cashflow

if you are a company engaged in Business to Business sales then you are probably reading that analysts are predicting that there is a stronger potential for you to start acruing bad debt than at any time in the last 10 years.

With the bank's squeeze on lending, and the subsequent difficulties that some companies will experience, its advisable for companies of all sizes to start considering arrangements that will help maintain their cashflow and credit lines.

How can you protect yourself from bad debts?

There are many ways of ensuring your clients pay their bills, but not many that leave you with time to run your business, and enable the business owner to maintain positive relationships with their clients.

In most cases, withdrawing credit facilities will do the business more harm than good, and so the onus needs to be on the management of the client.

Invoice Factoring

The term "Invoice factoring" encompasses a variety of invoice offsetting solutions.

in essence, a business offloads all or part of their accounting functions to a 3rd party factoring company.

The 3rd party is passed the clients invoice, along with their payment terms, and manages that debt until it is successfully paid.

This activity can be performed in the name of your company, or if you are a small business, using the name of the factoring business may add additional weight.

The cost of such services are relatively small, and with invoices being paid in less than a week, the benefits usually far outweigh the cost.

It seems obvious that by insuring against bad debt, that any clients who go out of business don't leave you exposed.

There are a number of insurance protection schemes available that can be tailored to your particular circumstances.

Discuss Your Options

Call TAL Commercial Today