- 12 Jan
Factoring Accountancy Services To Dentists
We have arranged a small factoring facility for a firm of accountants that provide services mainly to dentists and dental practices.
Invoice finance can be very helpful to accountants that want to improve their cash flow (or that want their clients to benefit from the service): Invoice Finance For Accountants.
Factoring Accountancy Services For Dentists & Dental Surgeries
Their issues was that they offered their accountancy services to their customers but needed payment by direct debit immediately, due to cash flow constraints. They wanted to be able to offer their customers trade credit accounts in order to attract more new business, and to be able to transact greater volumes.
Trade credit is common within the UK with most purchasers expecting to receive a minimum of 30 days credit before having to pay for their supplies and services. This gives the customers a chance to get paid before settling their accounts, however it can place a cash flow pressure on the supplier that has to grant the credit to their customers.
We were able to assist them by arranging a factoring facility with an independent invoice finance company. The facility provides prepayments against credit invoices to customers, which makes it seems as if their customers are paying on cash terms. They won't have to wait for the customers to pay, in order to access the value of their invoices.
Credit Control Service
The factoring service comes with a credit control service included. This means that the user no longer has to chase their own sales invoices for payment, the factoring company will do this for them. This aspect of the service can save money and time, removing the need to employ credit controllers, or to do the chasing yourself. This leaves you free to focus on other more important tasks, such as finding new customers and delivering goods and services to your existing customers. There are other product options, if required, that do not include the credit control service.