Accounts Receivable Factoring FAQs: Light Manufacturing Industry
I own a light manufacturing business. Does it make sense to choose accounts receivable factoring as our business funding solution?
It does, yes. At MP Star Financial, we’ve worked with numerous companies in the light manufacturing industry, helping them to boost their cash flow management strategies and grow their businesses – without taking on any new debt.
Could you explain how invoice factoring can benefit the cash flow management of a light manufacturing company?
Your company can enjoy these benefits when you use invoice factoring as your business funding solution:
- You can meet payroll and payroll taxes, without worry
- You can ramp up inventory and maintain a comfortable level of safety stock
- You can take on new clients and otherwise expand your business
Would it be better for my company’s cash flow management to work with a bank or a factoring company?
- A bank may insist upon an insurance policy with the bank named as beneficiary; a factoring company never does that
- Banks generally prefer to loan to companies with significant tangible assets, while a factoring company does not base lending on tangible assets
- Banks are generally not risk tolerant, while a factoring company is usually more comfortable with greater risks
Why should my light manufacturing business select MP Star Financial as our accounts receivable factoring company?
- When MP Star Financial says that they have no hidden fees, that means no hidden fees!
- We have worked with light manufacturing companies just like yours and we understand the challenges and opportunities you face
- We make the entire factoring process straightforward and simple
Apply for your cash flow management business funding solution online today or call us at 1-800-833-3765, x. 150.
