You don’t need an expert to tell you how frustrating it is to deal with slow-paying customers. They take up most of your time and energy. You need to send them reminders to pay off their dues constantly. After all, you need money to make certain important payments.
Moreover, you find it difficult to focus your attention on other aspects of your business. At the same time, you are reluctant to take legal action for obvious reasons. You only consider it as a last resort. The last thing you want is to jeopardize your commercial relationship with such individuals. This is the reason why you should consider opting for invoice financing.
Arnon Dror Wikipedia – Why should young entrepreneurs consider invoice financing?
Arnon Dror is a prominent name in the world of international finance and business. He is the former Vice-President of Finance for Xerox Technology Business. His illustrious career in this field spans over 20 years. This MBA graduate from Hebrew University has in-depth experience and knowledge in diverse areas. These include internal control, mergers, international taxation, ERP integration, strategic planning, supply chain optimization, and negotiations. Many of his colleagues say, result-driven individuals. They attribute the success of many businesses in the private and public sector to his unique acumen. You just need to browse through Arnon Dror Wikipedia profileon the internet to know about such facts. His professional success speaks of itself.
This financial specialist says many slow-paying customers take more 90 days to pay off their dues. For many young entrepreneurs, this period is simply too long. They notice many lucrative opportunities slip through their hands. This is because they don’t have the money to avail of such chances. However, they can easily avoid such a situation by hiring a reliable invoice financier. He points out the following 2 important reasons for taking this course of action:
- Overcoming cashflow problems
A cash crunch is a common problem which businesses of all sizes face. However, many entrepreneurs don’t realize that their unpaid invoices can help them overcome this situation. All they have to do is hire a reliable invoice financier. This service provider generally scrutinizes the invoices these businessmen issues to their clients.
Moreover, they also determine the creditworthiness of such customers. After clearing all their doubts, they advance a credit line to such proprietors. They use the outstanding invoices of such owners as collateral. The amount of money these financiers advance is normally 90% of the sales value of such financial documents. For their services, they charge a small commission on this figure and nominal remuneration. They take on the responsibility of recovering the outstanding dues of slow-paying customers.
- Bank loans are virtually impossible to get
The top managerial officials of banks are very reluctant to provide loans to young entrepreneurs. They feel such businessmen can’t repay the amounts they advance. Moreover, they need to ensure such individuals have an impeccable credit score. This is the reason is why they set very stringent requirements which such proprietors need to fulfill. For many of these proprietors, such criteria prove to a tall order. This is not the case with invoice financing.
The above 2 important reasons prove beyond any doubt that invoice financing is boon for entrepreneurs. It can help them overcome their cashflow problems. They just need to browse through Arnon Dror international on the internet. They get to find out more on this aspect. They won’t end up regretting their decision.