Feedback Form
Home Features Mastermind Forums About Advertise Blog Network Contact Be An Author

Supply Chain Strategies: Utilize Factoring Services to Strengthen Links

Supply Chain Strategies: Utilize Factoring Services to Strengthen Links

Things have changed pretty drastically in the world of commercial financing over the past couple of years, forcing drastic changes in small business financing as well—both yours and the companies you sell to. Just as importantly, the business of your suppliers has also changed.

Successful companies need to adapt to what Roger McNamee calls "The New Normal." As McNamee proposes in his blog, "Wake up and smell the coffee. This is not your father's economy. And it's not the boom that inflated our expectations and then exploded. But it's also not the doom and gloom we've been mired in for nearly three years now! So, wake up. Pull yourself together. Get on with it. ‘With what?' you ask. With the rest of your life. It's a bright, fresh world full of opportunities."

Getting There

Sounds terrific. But how do you get to this "bright, fresh world full of opportunities" when the telephone keeps ringing with calls from your creditors? What good is a purchase order if you will not be able to supply the product or service that will generate that profitable sale to your customer? Likewise, what good is a sale if you can't collect the proceeds?

Many businesses are struggling to pay their bills on time during this financial crisis. Responsible managers must maintain the quality of their earnings and assets by keeping their accounts receivable current, but they also need to maintain the goodwill of their vendors so they can refresh their stock with the merchandise or services their customers need.

Small to medium-sized firms, in particular, are feeling a pinch, since they do not have the access to capital that many larger companies still do. That is why successful entrepreneurs will concentrate on building strong links with their customers and vendors. A strong supply chain has always been important in business, but the New Normal has made it absolutely crucial.

Factoring Services and Your Supply Chain

Many B2B entrepreneurs are finding that factoring services are a great way to help them build a strong supply chain. Factoring companies can support your supply chain in four crucial ways.

1. Using the factoring service's credit department can help you assess if a customer will be a suitable partner in your supply chain.

2. Factoring invoices provides quick access to cash, as opposed to waiting for the conversion of accounts receivable into cash.

3. This quick access to cash can put you in a position to negotiate increased credit lines from your vendors and possibly even receive early payment discounts.

4. You may experience an improved turn on your "Days Sales Outstanding" with a factoring service professionally managing your accounts receivable.

Choose a Factoring Service Carefully

In choosing a factoring company to work with, it is important that you consider the ability of the company to support your supply chain. The continuing credit crisis has impacted many commercial finance companies. Will your factor company have the ability to provide you with the liquidity necessary to be a key link in the supply chain between your customers and vendors?

Also, some analysts are concerned about the condition of many of the non-bank lenders that are still operating, so don't hesitate to investigate a prospective factoring company's background, reputation and abilities.

Vendors, financiers and customers are important allies who should forge strong links in pursuit of each other's mutual success. Careful consideration of the needs of your partners can help you better fill the needs of your customers. In doing so, small to medium-sized business can not only survive, but thrive, in this New Normal Economy.





Supply Chain Strategies Utilize Factoring Services to Strengthen Links - To learn more about this author, visit Tracy Eden's Website.

Like this article? Share it with your friends

Article Feedback
 Article Feedback No article feedback found.
  Leave Your Feedback
article feedback

Article Feedback
George Ludwig
George Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website


To learn more about the Evan Elite Author Program please contact us.

About The Author


Tracy Eden
(Visit Tracy's Website) Tracy Eden is the National Marketing Director for Commercial Finance Group (CFG), which has offices throughout the U.S. CFG provides creative financing solutions to small and medium-sized businesses that may not qualify for traditional financing. Further information on the company and their services offered can be found at http://www.CFGroup. net. Tracy's direct email is tdeden@cfgroup.net< /a>.


Tracy Eden is a Silver author on EvanCarmichael.com
About The Author

View Author Blog
View Author Blog

View Author Video
View Author Video

Free Downloads


Tracy Eden's

Complete
List Of
Small-Business-Loans
Articles

Name
Email
If you enjoyed this article, get Tracy Eden's Complete List of Small-Business-Loans Articles For FREE!

More Tracy Eden
Supply Chain Strategies Utilize Factoring Services to Strengthen Links
Use Factoring Services To Take Advantage of PromptPay Discounts
Factoring A Commercial Financing Alternative to Venture Capital
Factoring Services Can Help Ease Your Cash Flow Crunch
Outsource Your Accounts Receivable Management With Factoring
Accounts Receivable Factoring Its More Than Just the Money
Financing Alternatives in Todays Tough Credit Environment
Free Downloads

Referred by: http://donsadlerwriter.com



 
 
 


Evan Elite Authors
David Acheson  
John Power  
Linda Richardson  
Evan Elite Authors

Become An Author
Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details.
Become An Author

Evan's Latest Video
Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media
Evan's Latest Video

Business Opportunities
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"

How to Start An Online Business

Click Here To Learn More
Business Opportunities



Evan's Newsletter
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
Name:
Email:
Evan`s Newsletter

Free Downloads
Your Marketing Mindset Icon Your Marketing Mindset
Success & Happiness Icon Success & Happiness
Tax Splitting Example Icon Tax Splitting Example
Making Life Work Icon Making Life Work
Setting Priorities Worksheet Icon Setting Priorities Worksheet
Free Downloads - Complete List

Entrepreneur Tools and Guides
Top 50 Franchising Blogs
Top 50 Franchising Blogs
Top 50 Franchising Blogs
 
Top 50 Social Entrepreneur Blogs of 2009
Top Social Business Blogs
Top Social Entrepreneur Blogs
 
Entrepreneur Tools and Guides

SEO For Africa
SEO For Africa
Francisco Jorge Fombe Boane, Maputo, Mozambique,
Francisco Jorge Fombe
Boane, Maputo, Mozambique
SEO For Africa

If I Were A Startup...
Lee Segal, >1,800% Growth in 5 Years
Lee Segal
>1,800% Growth in 5 Years
Robert Iachetta, $372k to $921k in 2 years
Robert Iachetta
$372k to $921k in 2 years
If I Were A Startup... - Complete List

Famous Entrepreneurs
Ty Warner, Beanie Babies
Ty Warner
Beanie Babies
Magic Johnson, Johnson Development Corp.
Magic Johnson
Johnson Development Corp.
Famous Entrepreneurs - Complete List

Entrepreneur Advice
John Jantsch, Duct Tape Marketing
John Jantsch
Duct Tape Marketing
Jack Canfield, Chicken Soup
Jack Canfield
Chicken Soup
Entrepreneur Advice - Complete List

Popular Articles
(Premium Authors)

     9 tips to increase ROI in PPC Campaigns by The Hits Doctor
By Brett Fisher

Have A Suggestion?
Toronto Salsa Classes / Toronto Salsa Lessons Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
Have A Suggestion?

More Evan Carmichael
More Information