As the automotive supply industry recovers from a struggling economy that took the major automakers to the brink of bankruptcy, automotive industry companies are experiencing increases in sales and new growth opportunities. For new or growing companies, maintaining sufficient inventories to fill customer orders can quickly deplete a company’s cash reserves.
Major corporations can withstand periods when demand for working capital exceeds cash coming in from outstanding invoices. Small and medium-sized established businesses or new companies in the automotive industry might not be able to survive without a dependable and consistent cash flow. Cash shortages can limit a company’s ability to operate, including:
- Filling current orders for customers
- Paying employees
- Paying suppliers for materials and inventory
- Advertising and marketing to attract new customers
- Expanding into new markets
- Upgrading equipment or facilities
For businesses experiencing cash flow challenges, factoring unpaid invoices may offer the solution.
How Does Automotive Industry
Customers in the automotive industry demand favorable credit terms on their invoices. Supply companies in the automotive industry commonly wait 30 to 90 days or longer for a customer to pay an invoice. Automotive industry factoring turns unpaid invoices into immediate cash without having to wait for payment from the customer.
Automotive industry factoring is the sale of your company’s outstanding invoices at a discount from their face value. Your company receives an immediate cash payment that it can use as it wishes, and the factoring company receives payment of the invoice from the customer.
Is Automotive Industry Factoring
Factor Funding Company has been helping businesses nationwide in the automotive industry to solve their cash flow problems. The financial solutions experts at Factor Funding Company know that automotive industry factoring can help your new or growing business if it has been experiencing cash flow challenges, including:
- Struggling to meet payroll and operating expenses
- Having difficulty filling customer orders due to inventory shortages
- Being unable to pay for marketing and advertising to attract new business
- Inability to obtain financing due to inadequate income or credit histories
- Having company owners with poor credit histories
- Inability to take advantage of growth opportunities requiring capital investment
- There is no job or credit requirement.
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