Article 3: Outsourcing

Particularly for smaller businesses, with accounts receivable loans or not, the task of extending credit and then maintaining accurate records and keeping track of those records, loans and receivables can be truly overwhelming. More than that, it can be dangerous to the health of your business, should you fall behind in your record keeping or simply not have the time or resources to manage your accounts receivables as efficiently as you’d like. Sometimes, it’s simply easier, faster, and financially beneficial to consider outsourcing with a factoring firm.  

When you are selling accounts receivable with an online invoice factoring company such as Fast A/R Funding, you’re actually outsourcing by using accounts receivable services. Factoring companies provide excellent working capital solutions by providing accounts receivable loans that give you immediate access to funds that would otherwise be tied up in accounts receivable for 30-60 days. But factoring firms do more. Much, much more.

Because top factoring companies help you manage your accounts receivables by enabling you to outsource the majority of the associated work, factoring invoices saves you substantial amounts of time, money, and resources. Without the constant tasks associated with accounts receivables, you and your staff are freed up to take on tasks more relevant to your core competencies. For example, Fast A/R Funding utilizes paperless online invoicing, so we reduce our clients’ in-house invoicing work while saving them money on printing, processing, and mailing bills.

Additionally, because factoring companies have access to high-level credit screening tools, by obtaining a factoring facility means you have access to them as well. This means you will be able to make better choices about extending credit while assuming less risk and doing a lot less work.

Stay tuned to the fast A/R funding blog for more on extending credit while managing risk!  

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