When it comes to businesses dealing with seasonal sales, making payroll and other financial obligations can be stressful on budgets. However, one way to deal with fluctuating sales and cash flow problems is to see if invoice factoring is appropriate to meet year-round needs.
One way for businesses dependent on seasonal sales is to have better financial predictability and available resources, as the Journal of Accountancy explains. Businesses can accomplish this by selling their accounts receivables through factoring.
Companies looking to increase cash flow during the slow sales season can benefit by selling their accounts receivable to a third-party business called a factor. When a company sells its invoices through the factoring process, it can collect much faster on that invoice from recent customer purchases compared to Net 30, Net 60 or Net 90 when an invoice is submitted.
By Mckenna Clarke, blog writer at TOP CFOS
Marketing. Sometimes it’s almost like a shudder that goes through a room when that word is said. I was at a networking event the other night and the presenter asked what came to mind when we think of marketing. Several people said things like, “selling”, “pushy”, “annoying”, and “advertising”, which I think is typical for a lot of us. Read more
By Tyler Garrett, executive assistant to Randy Russon, founder of TOP CFOS
Someone once coined the phrase: “People do business with people they know, like, and trust.” Knowing this to be true, companies should have unending motivation to market effectively. An element of effective marketing is hitting your target audience, and this is so important when firms are spending millions of dollars on marketing.
Think of all the Super Bowl ads that are aired. Quoting syracuse.com: “A 30-second advertisement during this year’s game costs a cool $4.5 million. That’s an average of $150,000 per second.” This price is up from $42,000, which was charged during the first Super Bowl in 1967! Obviously, firms wouldn’t spend this kind of money unless they were hitting their target audience. These firms want you to buy their product.