| Nevada USA Temp Placement Office Has Worry-Free Factoring |
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| Written by Wade Henderson |
| Thursday, 21 January 2010 15:43 |
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Have you ever had customers that did not pay their bill to your company even though you did the service to their satisfaction or delivered the goods on time with no complications? They even signed off on the Proof of Delivery and never hinted that they could not pay you nor had no intentions to pay you right from the start?
Have you ever had customers that did not pay their bill to your company even though you did the service to their satisfaction or delivered the goods on time with no complications? They even signed off on the Proof of Delivery and never hinted that they could not pay you nor had no intentions to pay you right from the start? This is precisely what happened to a Temp Placement office in Nevada USA. They had been dealing with companies that they had for a few years now without incident. They had signed the Proof of Service deliveries that they used which were time cards, and never indicated a problem. The accounts were to be paid net 30. After the Invoices were due they Placement office called looking for their funds and they were given an excuse of why they were not paid and they were then told they would get the funds as soon as they could. To make a long story short, the customers were in bankruptcy protection and their invoices were put into the claim. Two things now had to happen for the company. One was to find a way to pay the staff that was working as they had now depleted their cash reserves with no expectation to ever collect on the Invoices they had issued. And two was to find a way to make sure this never happens again. The part of the solution to the problem was for the company to look at Insuring its Receivables. But what about the Cash Flow problem? They contacted a Professional Commercial Finance Broker who knew exactly how to set up their accounts in such a way that they could use the funds that were locked up in their Accounts Receivables Collections, their normal Accounts Receivable which were under 90 day and prevent this problem from happening again. The Commercial Finance Brokerage put together a Non-Recourse Factoring agreement for the company and also arranged for the bad debt that was on their books to be liquidated in order to recapture some of the losses they had sustained. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Wade Henderson - very Professional - 15 yrs in the Business Finance Field - reputation for getting the deal done. IMMFinancial.com jd factors invoice factor Get a totally unique version of this article from our article submission service |