Furniture and Home Décor companies that manufacture, distribute, and sell home goods face a great deal of competition, but also often have strong potential for growth. Whether they work with furniture, carpet and flooring, home accessories, or window treatments, these companies can depend on a steady market demand as the country’s population continues to grow. The furniture and interior design industry will also continue to evolve as new ways of marketing and selling become common.
One challenge that some of these companies face is waiting weeks and months for customers to pay. With any manufacturing contract or distribution arrangement, customers can negotiate 30, 60, or even 90 days to pay – and yet the furnishings company must keep up with payments for salaries, inventory or materials, rent, and other fixed expenses during that interval. That’s why some companies in this industry work with factoring firms to help them keep up with today’s inventory and tomorrow’s projected sales.
Factoring can help a company increase its cash flow without waiting for customers to pay. When you partner with a reputable factoring company, you will receive the majority of what you are owed upfront while the factoring company collects on your invoices and pays you the balance, minus a small factoring fee, once the invoice is paid in full. If you are a manufacturer, for instance, this puts you in position to take on larger clients such as wholesalers, retailers and distributors or negotiate volume discounts for materials. Home décor and furniture company owners find factoring to be an affordable and convenient funding solution without taking on loans or incurring debt.
Factoring Tips for Furniture and Home Décor Companies
Find a factoring company with experience in your industry. Look for factoring professionals who know your business model, whether it is manufacturing, distribution, or sales.