Today’s automotive supply industry is driving a large portion of our national economy. When the economy is growing and employment statistics are positive, people are quick to head to car dealerships to check out the latest models. When the economic future is less certain and people are concerned about their jobs, new car sales slow down.
Owning a company that supplies parts to car manufacturers or automotive supply stores means that your cash flow can either be in high gear or sluggish, depending on the economic climate. That’s why many automotive supply companies partner with factoring companies to help them keep money on hand to maintain both today’s inventory and tomorrow’s expected sales.
Whether you manufacture new car parts for Ford, export tires to Mercedes-Benz, or distribute replacement parts to small auto repair shops and big-box auto parts stores, factoring can help you increase your cash flow while waiting for your customers to pay. Instead of waiting 30 to 90 days to receive payment for the products you have delivered, you can receive payment upfront. When you work with an invoice factoring firm, you can meet payroll and set aside funds for growth.
Factoring Tips for Automotive Supply Companies
Car manufacturing and maintenance will always be big business in North America and you can conduct a very successful business in this industry. To help you stay profitable during the inevitable economic cycles and seasonal changes, consider working with a factoring company with professionals who know your industry