Manufacturing and Invoice Factoring Go Together Like Peanut Butter and Jelly

Though some sectors have a steady flow of business, others have a cyclical flow of business in peaks and valleys. The manufacturing sector, which involves global entities and numerous parts working together for the production of salable merchandise, tends to be the latter. Those in manufacturing know these high and lows can cause a number of financial challenges related to cash flow, particularly covering the gap between paying for production and collecting on goods sold.
manufacturing factoring

Cash Flow Gaps in Manufacturing Make Invoice Factoring the Go-to Choice

This predictable gap makes invoice factoring a great match for the manufacturing sector. Even manufacturing companies in the black regularly confront these gap cash shortages due to the nature of the business. In fact account receivables factoring was historically used for the manufacturing (textile and clothing) sector in part to account for this often unavoidable gap.

Meet Seasonal Production Demands with Factoring Services

Manufacturing factoring is a proven, effective method for these businesses to get cash quick to cover these gaps in order to continue production. From factory overhead to covering payroll for assemblers and from shipping costs to raw materials procurement, the manufacturing process involves a number of components working together to produce goods on schedule. Manufacturing invoice factoring can help with cash flow, as well as with payroll in order to hire more workers to meet increased production demands. Factoring receivables can also be used to cover the costs of new equipment purchases, factory expansions, seasonal staff increases and more.

The History Between Manufacturing and Factoring Invoices Is Long

When you work with an invoice factoring company, they are extremely familiar with the struggles manufacturing companies face since account receivables factoring and manufacturing have a long history of working well together. Manufacturing factoring companies will review your existing invoices to assess their quality and provide you with the cash you need within 48 hours so that you can move forward with your business. With an invoice factoring company, no extensive paperwork or credit checks is necessary. It is even common for many businesses in manufacturing to get on a rhythm with an invoice factoring company to regularly cover these stop gaps.

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About the Author:

Robert Bernfeld started in the commercial finance industry in 1974. His early years included positions with Aetna Business Credit and Foothill Group. During the next thirty five years. Mr. Bernfeld established both equipment leasing and accounts receivable factoring companies.He partnered in founding Business Facilitators, Inc. in 1999. Mr Bernfeld graduated from the University of California, Riverside in 1974 and received his Juris Doctorate from Loyola University School of Law in 1977.

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