Pallet Company Factoring
Pallet companies often 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.
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 do not offer long enough credit terms to your customers? 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 company factoring, this 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.