The cable industry is dynamic and still growing, making it an ideal environment for companies that market and sell cable services. However, one of the main challenges for cable sales companies and cable installers is waiting for cable companies to pay invoices.
Most cable sales companies tally their weekly or monthly sales and submit them to the cable company for processing. Depending on the cable company, you can wait as long as 60 days to get an invoice paid.
This payment delay affects small cable sales companies
Many cable sales and marketing companies are started by individuals with great sales experience but little actual capital. They are entrepreneurial companies that operate on a shoestring budget in which every dollar counts. For many sales and marketing companies, waiting for payment is not an option. They simply need the money sooner to pay their sales staff and other expenses.
The dilemma is clear: you work with great clients, but they pay slowly; and you need money to run your business.
Finance your receivables to get immediate funding
You can solve this problem and get funds to run your cable sales and marketing company by factoring receivables. This solution, also referred to as invoice factoring, accelerates the revenues tied to slow-paying invoices by financing them — giving you money to cover business expenses and to take on new clients.
The solution is fairly simple. A receivables factoring company purchases your invoices from slow-paying but creditworthy cable companies and pays you for them quickly. The invoice is often financed in two payments, referred to as the advance and the rebate. The advance pays up to 80% of the gross value of your invoice as soon as you invoice the cable company for completed services.
The rebate pays you the remaining 20%, less the factoring fee of 1.15% to 3.5% per 30 days, as soon as the cable company pays their invoice in full. They pay on their regular schedule and do not need to pay sooner.
Leverage your customers
The chief benefit of factoring your invoices is that you can leverage the credit quality of your clients to your advantage. Most cable companies are very profitable and have strong cash flow, which makes them ideal payers from a factoring perspective. With invoice factoring, you can improve your own cash flow and reduce the time it takes you to get paid to as little as two days.
Getting funded is relatively easy and can be done in days. Aside from having creditworthy clients, your cable sales company should have unencumbered receivables and be free of serious legal problems.
Factoring invoices can be an ideal option for small but growing cable sales companies that need funding because they can’t afford to wait up to 60 days to get paid.
Get more information
We are a leading factoring company and can provide you with competitive terms. For information, get an online factoring quote or call (877) 300 3258.