If you've been in business long enough you will certainly attest to the fact that trade cycles can often times seem like a roller coaster ride. Whether your product sales are seasonal or not, most companies experience increases and decreases in the demand for their products and services.
Transitioning to a slower volume during any quarterly period usually coincides with a short term increase in in cash flow. As accounts receivables decrease, cash flow temporarily increases.....for a limited time period.
On the other hand, when accounts receivables and purchase orders increase, demand for cash flow spikes upwards. Inventory purchases will occur. Vendors may want cash up front when you place orders. Shipments may be held until payments are made. Operating expenses and payroll are fixed and must be addressed. When this happens, the best advice a business owner can put into practice is "Plan, Prepare and Perform".
Preparation for spikes demand for cash is essential to sustaining operations.. When cash is tight to begin with and you experience a surge in sales, you had better have a plan available from which to draw cash for operating expenditures. Purchase order financing from Catamount may be a great option for you. Don't wait until the last hour to secure your financing needs. Performance down the road depends on how well you have planned out and prepared for a big cash need.
Establishing an accounts receivable factoring facility and/or purchase order financing before you experience a cash flow crunch is a pretty good idea. Get set up early. Experiment with it by testing how the program works with your factoring company even before things heat up in your trade cycle and you really need it.
The thing you don't need in your business life is finding yourself in a situation where you are worrying about paying bills, wondering when a check is going to hit the mail box and waiting for something good to fall in your lap. If you don't prepare and lay the groundwork for your credit needs early, you may very well find yourself struggling to sleep at night.
Get with a reputable factoring company like Catamount Funding, Inc.
What we are...
Experienced – our principals have been in the factoring business since 1994 and come from background in the commercial banking industry. Chances are we have already seen businesses solve issues that you are currently struggling with. We are a free sounding board. If you want a little advice, we are happy to help.
Collaborative – We build trusting relationships through open communication and productive teamwork integrating all parties to create the best solution. This is evident when providing purchase order financing. All parties are a part of the process from order to procurement to invoicing.
Results Oriented – We make timely decisions. Factoring transactions requires a special approach with sensitivity toward the client relationship. We integrate data and evidence in all decision-making processes to achieve desired outcomes. We succeed in every client relationship involving the invoice factoring process from billing on the front end to receiving the payment when due.
Compassionate – We genuinely care about people and want to see their businesses succeed. We are sensitive to the needs of others and strive to make a difference. During the factoring process, we try to put ourselves into your shoes and strive to achieve the greatest results possible for your business.
Accountable – We accept responsibility for our actions and decisions and the impact they have on those we serve. When we factor client invoices, we are respectful of the customer relationship and handle ourselves in an utmost professional manner.
Empowered – We create and embrace change, readily adapting to new situations and encouraging all to be a part of the solution. Receivable management mandates this skill.
Innovative – We discover, develop and implement new ideas, technologies, and partnerships and processes.
Catamount Funding, Inc. – We value the whole over the individual parts of the System.
Because we are able to approve your credit needs so quickly, more times than not, we are always going to be a better option than waiting for a bank's answer. Invoice factoring with Catamount is simple. We will help you improve your business so you never experience cash flow pain again.
Catamount has always been there for us and has been very instrumental in helping us succeed.
Without Catamount we would not be where we are today...period. They have been a tremendous help and are very supportive!
When we needed help Catamount stood up to the plate for us. Their service is outstanding...great people to work with!