When taking on a new contract, or one that is larger than your company would normally pursue, factoring your receivables can be a viable option to ensure you have the funds in place to complete the project.
A larger project can quickly drain your bank account when payroll expenses need to be paid biweekly and operating and supply costs are required to be paid on startup, yet your invoices may not be paid for up to 90 days.
Factoring allows your company to have the cash flow you need to meet these payment requirements.
At Factors Western we encourage clients or prospective clients to call us they when arriving at the “bid” stage, allowing us to assist with that process by providing credit information in relation to the Company offering the project for tender. Having that credit information in advance can prove to be extremely useful in making your decision on taking on work.
It also allows your company to build in the factoring fees to their forecasts project budgeting, perhaps avoiding a significant surprise at a later time.
Why not give us a call to explore the advantage of factoring when taking on new and larger projects.