“What is the true cost of accelerating receivables?”

Ask many financial executives when discussing non-bank sources of working capital.

The answer?

The savvy CFO knows that invoice factoring isn’t a cost center – it’s a speed-of-capital arbitrage opportunity.

Let’s look at how purchasing cash can be used to take advantage of 2/10 Net 30 supplier discounts:

#1: Accelerate Receivables – By leveraging factoring, you can free up cash tied in your receivables faster than the typical 60- to 90-day payment terms. Clients enjoy funding within 24 to 48 hours of billing their customers.

#2: Pay Suppliers Early – Use that flash funding to pay your raw material or equipment suppliers within 10 days and take advantage of the ubiquitous 2% early-pay discount (also known as 2/10 Net 30).

#3: Eliminate Financing Fees – That 2% discount from your vendors often covers the full cost of your factoring program. That means you enjoy net- zero cost speeds to capital.

Bonus Tips:

Preserve Gross Margins – By always having the purchasing power to buy in bulk, you can protect your margins from market increases.

Fill Cash Gaps – Say goodbye to missed opportunities from not accepting that high-volume contract because you can’t afford to build inventory or pre-pay suppliers.

Flash cash is about more than simply paying your bills – it positions your business miles ahead of the competition watching their cash sit on the balance sheet.

Spending 10 minutes with us this week? We can show you how these supplier discounts could be applied to your current Accounts Receivable aging summary.