Pallet Company Factoring
Pallet companies struggle with the same cash-flow issues as many other manufacturing companies. This is a very labor intensive industry that also dependents on purchasing raw materials to produce your final product. Having the expenses of paying your employees, material, overhead and the logistics costs to ship the bulky pallets to your customers. It’s no wonder why so many pallet companies turn to factoring to solve their cash flow needs.
How can Pallet Factoring grow my business?
By giving you the cash that you need to run your business. You did your job; you delivered your products to your customers. How long is it going to take for them to pay their open invoices? Maybe some of your customers pay you in a rapid time-frame but maybe you have other customers that are taking too long to pay you. What do you do? Do you tell them you don't want their business? Do you demand that they pay you faster? Rather than doing this, you can simply sell us the invoices of your choice from the customers of your choice at a discounted rate, for immediate cash.
Now that you have your products manufactured, your employees paid and your product shipped, you find yourself in a position where you now have to wait an additional 30, 60 or 90 days for your customers to pay you.
Are you losing business because you cannot offer terms?
Are you turning down new business because you customers need longer payment terms? Typically, the bigger the customer the slower they pay. If you using invoice factoring for your pallet company, you will be able to offer longer net terms to your customers, so you do not turn away any business. If you offer 60 net terms but you know you can’t wait 60 days to get paid then you can sell us these invoices and we will pay you within 24 hours of our verification process. We pay you and your customers pay us, let us wait to get paid.
When you factoring your invoices, you are always one day away from being funded; so go ahead and offer longer credit terms, this will no longer cause you cash-flow problems.
Using pallet factoring will give you immediate access to your cash. We advance you up to 90% of the face value of your invoices. We hold the other 10% in a reserve account until said invoice is paid, the we refund your reserve amount, less the factoring fee. Please see our fee structure by clicking here.
You can also use factoring a tool to save you money. Most vendors offer a discount if you were to pay them in 15 days; if you are factoring your invoices, you will be funded within 24 hours of us purchasing your invoices, which means you will have the cash flow to pay your vendors to take advantage of the discounts that they offer.
Invoice financing for pallet manufacturers can certainly give you a cash infusion. You can make capital improvements to your facility, buy in large bulk to receive deeper discounts on your raw material, hire additional works or even give yourself a raise. You never again have to wait 30, 60 or even 90 days for customers to pay you. Factoring with Alliance One LLC, you sell us an invoice today, we pay you tomorrow.