One of the biggest mistakes that a business owner, irrespective of what
sector of the market they happen to be involved in is to fail to use and
exploit their assets in the most effective and productive manner
possible. Failing to do so can ultimately drag down the overall
productivity of the business which in turn will have a detrimental
effect on the overall quality and profitability of the business as well.
merchant factoring
In
severe cases, the lack of productivity enjoyed by the business may mean
that it has to increase the prices that it levies for its
goods/services which in turn will alienate their customer base and
damage their goodwill. Potentially, this can mean that competitors can
then step in and acquire previously untapped control which in turn will
drive down the profitability and control of the business. The ultimate
outcome here? The business finds itself outpriced and outclassed by its
rivals.
To many business owners, an outstanding invoice which is
yet to be paid is nothing more than a financial and logistical headache
in that it the business owner will be forced by necessity to chase up
the customer who owes the money and ensure that they pay it up. What
many of them fail to realise or appreciate is that these invoices can
actually be used as leverage to raise significant and worthwhile amounts
of capital, which in turn, will alleviate any cashflow problems that
the business is enduring.
With merchant account factoring, the
business owner will be able to acquire capital by effectively selling
their invoices which have an outstanding balance owed on them to a
merchant account factoring company.
One of the major benefits of
using a merchant account factoring is that the factoring agency will
assume full and total responsibility for the collection process. This
means that the client company need not worry about hiring or using
administrative staff to ensure that the balance is paid, the factoring
agency will do all this for them. In short, the client company benefits
from saving time, money and manpower.
Please note that there have
been concerns raised about the usage of merchant account factoring and
specifically, these concerns have focused on the fact that there is a
great deal of potential for the accounts in question to be used for
illegal and illegitimate purposes, specifically, money laundering.
Given
the extremely strict liability issues that arise from the PATRIOT Act
in the USA and other jurisdictions, the mere fact that a business entity
was unaware that money laundering was taking place is of no benefit to
them, and is not enough to prevent culpability arising.
Concerns
have also been raised due to the fact that merchant account factoring
can also be routinely used for credit card fraud, and a series of high
profile scandals have only served to further highlight the dangers of
this very issue.
merchant factoring