In the manufacturing industry, many businesses experience a slow period. During this time, your cash flow typically suffers. Without incoming cash, you can face the challenges of bidding on less jobs, running out of inventory, having to lay off hard workers, and much more.
Using Manufacturing Invoice Factoring to Combat Slow Seasons
Rather than letting these common cash flow issues take a toll on your business, we’ve complied a few ways that you can use manufacturing invoice factoring to help stay afloat and grow.
1. Take on Smaller Jobs
During slow seasons, your typical or preferred job may be hard to come by. Try focusing your bids on smaller jobs.
Although these jobs may require less work than those your team typically bids on, you’ll be able to generate more cash, expand your expertise, and build relationships with clients that you normally wouldn’t.
Taking on smaller jobs does not mean that you’re devaluing your business, it means you are doing business smarter. Rather than letting cash flow issues get the best of you during slow seasons, taking on a different caliber of work will not only help you keep your cash flow at bay, but also keep your team motivated and driven.
2. Take Your Team to a Trade Show
If you’re looking for a simple way to make new connections, use invoice factoring to take your team to a trade show.
With invoice factoring, your business will work with an invoice factoring company to get an up to 96% cash advance with low rates on outstanding invoices in just 24 hours or less. This allows you to build a strong source of working capital that can fund a team outing to an industry specific trade show.
Trade shows can be invaluable venues for making connections to other manufacturing companies, new clients, and new potential skills that can help your company find more jobs during slow times.
Networking with other companies in your industry can lead to business partnerships with architects, engineers, electrical technicians, and other professionals that can transform your business.
3. Share Your Expertise with Others
You may not know it, but your expertise as a manufacturing business owner can be beneficial to others getting started in the field. Teaching a class, hosting events, and taking on interns are great ways for your business to not only share its expertise, but also generate extra revenue during slow months.
By using invoice factoring, you won’t be burdened by the task of managing your invoices. You’ll be able to share your expertise with others while the invoice factoring company collects the remaining balance on your invoices.
After you’ve factored your invoices with a company, they will advance you up to 96% of its total and collects funds directly from your client. This will not only help your business free up more time, but also allow you to cut administrative costs.
4. Increase Your Marketing Efforts with Invoice Factoring
When you’re faced with low or poor cash flow, the last thing that may be on your mind is increasing your marketing efforts.
When you utilize invoice factoring, your business will have access to the funds already owed to it. This will allow you to increase your marketing budget to reach out to former clients, referral partners, and others that may have new work for your business.
You can also use your advanced funds to expand your marketing efforts into new markets, regions, and other new territory where you believe your business can thrive.