The per capita GDP of Arkansas is $39,107 and 19.1% of its population is living below the poverty line. Interestingly, Arkansas is well-known for its charity. According to a report, in the year 2011, the state gave away 6.3% of its discretionary income to charity. You will be amazed to know that as per the CNBC report, Arkansas is the 20th top business state in the US with the 5th lowest cost of living and 2nd lowest cost of doing business.
The state offers 32nd friendliest regulatory regime with 28th best educated workforce and 20th best economic climate. Above all, the state has the 11th best workforce in the US. It has the headquarters of six Fortune 500 companies including Walmart that are engaged in varied businesses as varied as poultry, retailing, clothing/department store, healthcare equipment & services, trucking/transport, and communication.
All those put together indicates the fairly large business activities of Arkansas. This, in other words, means there is a huge demand for cash to run the businesses in Arkansas. But, payment realisation from the B2B (business-to-business) clients may take days and months. Thus, managing cash flow in your business may be difficult. There come Arkansas invoice factoring companies.
Things to know about the Arkansas invoice factoring companies:
- Instant cash:You will be happy to know that you can get cash up to the 95% of your invoice value or even more in cash while working with Arkansas invoice factoring companies. However, the purchase value of your invoice will depend much on the agreed rate of purchase by an invoice factoring company. But, you can take the purchase to your favour by committing volume to the invoice factoring company. In other words, if you can convince the invoice factoring company on the earning potential over the time dealing with you, you can surely crack a deal to your favour. It further connotes that there’s nothing fixed in the business of invoice factoring.
- Invoice:This is another important criteria for the Arkansas invoice factoring companies. Here, you can cash only those invoices that have been drawn on the financially sound parties. In other words, your clients must have creditworthiness in the market.
- Overhead cost control: Since the invoice factoring companies buy your invoices and pay you cash at an agreed rate, you need not have to bother about the collection from the clients. In other words, you don’t need to maintain a collection team or depute your sales team for collection. This works in the best interest of your business.
In short, these invoice factoring companies truly work in the best interest of its’ clients and pay cash against the invoices at a discounted rate. Having said that, we mean, the money you receive here will be less than the face value of the invoice. In other words, the factoring company will deduct a certain percent of your invoice and pay the balance in cash. In the process, cash flow to run your everyday business will not be a constraint to you anymore.