Every business is different in their make up and the way they operate. The commonality in success is based around the ability to innovate and profit whenever possible. For any type of business, having a plan in place is absolutely essential, especially when it comes to growth and innovation. Unfortunately, even the best laid plans can run into a few stopping points when influx of capital has suddenly stopped because your clients are delaying their payment on invoices.
How A Non-Recourse Factoring Company Can Help Your Apparel Business
Any apparel business relies heavily on cash flow for everyday purchases. This can range from purchasing additional materials, to more robust investments like upgrading equipment. When you need capital quickly for your business, you should consider working with a non-recourse factoring company. They’ll not only help you get cash quick, but also handle the problem of unreliable clients.
Understanding Non-Recourse Invoice Factoring
For a lot of businesses out there, the idea of invoice factoring (and non-recourse factoring) might be unfamiliar, especially how it actually works. The process can be broken down as follows:
- A business with delayed invoices (or any account receivables) from clients reaches out to a factoring company.
- The factoring company will evaluate the credit of those clients, and then purchase the outstanding invoices to advance up to 96% of the total at low rates to the business.
- This all happens within 24 hours.
- The factoring company then oversees the collection of payment from clients.
- In the case of non-recourse factoring, the factoring company absorbs the totality of the loss if clients fail to pay invoices.
The ability to get fresh capital without having to worry about neglected client payment is a huge benefit to any business who needs to keep growing at rapid rates.
You can Invest in a Wider Product Portfolio
When it comes to the benefits of apparel invoice factoring, the way you choose to spend is entirely dependent on the needs of your business. One thing that helps spur apparel business growth is a diversification of product portfolio. If your company has been effective in creating a line of casual shirts and pants, you can expand to a premium line of clothes that retains your unique sense of style, but is made for a slightly different audience. By listening to what your customers want, you can get a better sense of what direction to go with future design.
Improve The Working Space to Help Drive Creativity
A successful apparel business will take pride in its unique brand. This can range from the types of clothes manufactured, to the materials used, or even the accessories created. Regardless of the primary focus, it’s absolutely crucial that you give your designers a space to flourish creatively. By using invoice factoring and obtaining fresh capital, you can show your your most talented people that you value their input and what they contribute to the overall business. This is also motivating them to give back in bigger and better ways.
Invoice Factoring Isn’t Limited to Apparel Businesses
When it comes to getting capital in under 24 hours, there are a number of industries that can use invoice factoring. Success for business at any level is dependent on getting cash when you need it, and continuing to grow and innovate.