Factoring: Sound Business Sense
Outsourcing is no longer unusual or misunderstood, it has become a valued service. Particularly when it is not viable to have a resource in-house or it makes more sense to have an external resource.
Today there are many services which are handled externally by a consultant, contractor or freelancer, for instance, the virtual assistant or VA has become extremely popular and suits people who have a need to work from home and employers who don’t need a full-time receptionist.
Factoring can be considered as outsourcing your debtors but don’t confuse it with debt collection, that is quite a different service.
Outsourcing debtors is how Wayne Lemke considers CashFlow. He also considers CashFlow as a business partner with whom he has a strong relationship.
This is not the first time Wayne has used the factoring services of CashFlow. With a previous business which was quite reliant on resources companies whose payment terms were 60 to 90 days, he turned to factoring to ensure a steady cash flow for his business. As he wanted to grow his business, it was not possible with erratic cash flow and he needed to find a solution.
Since then Wayne started a new business and has continued using CashFlow to manage his debtors and ensure continued regular cash flow. He said “They are a great company to work with. It is a ‘no-brainer’, why wouldn’t we go back.” It wasn’t an issue of cash flow problems to continue working with Cashflow, it just continued to make good business sense.
Customer service is important to Wayne both in running his own business and working with other companies. “We live in a day and age where so many just pay lip service and don’t provide real customer service. With CashFlow it is not lip service, they work with you and as a result, I have a personal relationship with them.”
If anyone was in any doubt about the importance of customer service to his business, Wayne has a saying on a wall in his office:
‘A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large.’ Henry Ford
This saying is even more relevant in today’s world and a good mantra for any business to live by.