Article from Risk and Insurance
Interesting summary article discussing the shortage of drivers contrasted with the increased regulation by the government.
Seasonal Example 1
A consulting firm has a large seasonal customer providing for 40% of revenue during a certain time of year. By simply factoring those specific invoices they would be allowed continued smooth day to day operations.
Under the seasonal model depicted to the left, a spike in payables resulting in increased cash flow needs may occur while waiting for receivables to be paid. This seasonally tight cash flow can be resolved through Invoice Factoring.
Business Fluctuation Example 2
A retail location performs commercial installations from time to time. If the customer who receives the installation delays payment, this can hinder the business’ ability to pay a critical supplier who keeps the retail shelves stocked. Invoice Factoring the installation job can avoid this problem by insuring the cash is there when needed.