The reports, analyses and forecasts published at the beginning of this year give some reasons for optimism. The analysts expect the growth of the GDP and the entrepreneurs assess the situation the best for a lot of years. Increase of sales, foreign trade and internal demand is a fact.
What to do if the impact of the positive factors seems to evade us? If, faced with information on the developing economic boom, we cannot do anything since instead of cash we possess payable receivables? If there is too little working capital for investments and sometimes even for payment of liabilities and the debtors are not eager to pay their debt?
It is worth knowing that even overdue payments may be the basis for reconstruction of the financial liquidity of the company. Ordering of the service of payable receivables to professionals may be a way to acquisition of cash. When the company needs money immediately, it has several possibilities. One of them is sale of receivables, even the payable ones.
Sale of debt allows for immediate exchange of the receivable into cash. Nevertheless, it should be remembered that we will get the highest price selling the debt being on the amicable stage, properly documented, the payment term of which does not exceed 3 months. Another way to get cash in exchange of overdue receivables is debt collection in the option with the advance paid by the debt collector for future payments of the debtor. Within factoring, the external company will also finance the payable receivables. 48 hours from the moment of signing of the agreement to the transfer of the means will be enough.
Regardless of the fact whether we choose the sale of the debt, the debt collection or another type of financing of the payable receivables, we should take into account the fact that the profitability of such transaction depends on the response time. It is also advisable to analyse the operating capabilities of the debt collection company, so that it is able to offer the solutions that are optimum for our industry and for the specific receivable.
Published on: 7 March 2014