Factoring finance is a tool that you can use in many ways. All businesses love customers and clients that pay quickly. They do not have to chase for payment. In fact, suppliers love prompt payers so much that they are often willing to offer discounts to those who do it consistently. You can be one of those customers by using Factoring finance.
Understandably, though many businesses are simply not in a position to pay within (say) 7 or 10 days on a regular basis. If debtor finance or factoring finance is effectively used you could be in a position to do this. As a result, you might be able to negotiate as a discount. You could reduce costs and allocate more funds and resources to grow your business.
Become a Preferred Customer
In addition to giving you discounts, suppliers will often give prompt payers access to other benefits. These can include benefits such as first access to new products and general preferential treatment. That may include your orders being pushed through first. Your suppliers LOVE prompt payers. Factoring finance can put your business in that position.
Many small businesses can find it intimidating to negotiate with a supplier. It is important to remember that you will not reap any of the benefits of a good relationship without actually starting a conversation with your supplier.
You Should Negotiate
Negotiation is not everyone’s strong point, but it is crucial for business owners to know that they are the ones with the ultimate power in these situations. If they have the cash that is. It is up to you whether you buy products off of them, not the other way around.
Another tactic that many businesses employ, is utilising multiple suppliers. This ensures that you are keeping everyone honest and on their toes. When you have more than one supplier they are aware that they are in direct competition with each other.
Prompt payment discounts can be arranged with suppliers and it is possible to be a prompt payer by utilising debtor finance.
Learn to negotiate and do not be afraid to walk away from a supplier if they are not offering you the best price.
To find out more about factoring finance click here.