Cash flow can be a substantial problem for growing businesses or businesses with slow-paying receivables.
A business might be flourishing, but may not have the immediate cash needed to continue to grow. The problem can stop even the most successful business from making it big.
First National offers Business Manager, a way to keep cash coming, even if invoices are not paid for 45 or 60 days.
How it works
Business Manager allows you to sell your commercial invoices to the bank and outsource payment processing. You can have cash in hand in a matter of one or two days after a purchase, instead of the slow process of waiting for an invoice to be paid.
First National assumes responsibility for processing payments, mailing statements and receiving incoming payments.
Once you have prepared an invoice, the transaction information is transmitted to the bank to continue processing. First National buys the invoice from you.
Business Manager offers several benefits. First, cash is available in a very short time. This not only improves cash flow, but also can help you take advantage of prompt payment or volume discounts.
Second, it may allow you to offer more lenient payment terms to your customers. If youre not waiting for invoices to be paid to make other purchases, you can give your customers more time to pay.
Third, money management is improved. Because First National provides accounting and reporting, it is easier for customers to stay on top of their account receivables.
Business Manager advantages
There are also advantages inherent in Business Manager that may not come with traditional factoring or a line of credit.
Business Manager is available to newer, growing businesses that may have a hard time getting their credit needs met. It also can help businesses with account receivables, something not available through a line of credit.
Upon your request, statements to customers dont need to show First Nationals involvement. The whole process can be completely invisible, eliminating any confusion or uncertainty to customers.
Additionally, Business Manager is generally less expensive than traditional factoring.
Is it right for my business?
Business Manger is not right for every business, but can be a big help for those that are experiencing the need for help with accounts receivables.
It might be a perfect option for manufacturers, wholesalers and transportation businesses, to name a few. To find out if Business Manager might be the key to success for your business, contact First National and we will help you find a system that is right for you.
Many businesses are on the brink of greatness, with cash flow the only thing standing in their way. That doesnt have to be the case.
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The articles and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest you consult your attorney, accountant, financial or tax adviser with regard to your individual situation. Entire publication. For publication information, call (907) 777-3409.