Keeping Cash Flowing During an Economic Downturn

DOWNERS GROVE, Ill.--(BUSINESS WIRE)--Small and medium sized business owners may find accounts receivable financing efficient and affordable, especially during a recession when suppliers are delaying payments, make it difficult for business owners to access badly need cash.

“Commercial businesses that invoice clients have a fundamental cash gap: You create a product or service, send the bill, and then wait up to 30, 60, and maybe even 90 days for payment. In a down economy, you may wait even longer as your customers, struggling to stay afloat, resort to postponing payment further,” says Gail Reints, CEO of the Chicago office of Bibby Financial Services.

By leveraging your company’s accounts receivables, you have immediate access to the cash generated from your sales. No waiting is necessary. Accounts receivable finance gives you the ability to close those gaps in cash flow so you can pay your vendors on time and meet payroll. When selecting an accounts receivable partner:

• Look for one that is financially secure and reputable. The firm should be able to provide large sums of immediate working capital for your invoices.
• Seek out a streamlined underwriting process. Look for a firm that can secure first funding in two to four business days for companies with facilities under $250,000, and has the ability to fund up to at least $10 million.
• Ask about the fees associated with the funding and collection of it. Seek out a company that has straight-forward pricing.
• Ask about their experience in export financing and managing the opportunity costs of doing business so that as the economy starts to grow again, you will grow with it.

If your firm, or a company with which you work, is in a cash-flow rut or already declared bankruptcy, it’s not too late to turn to an account receivable financing firm. Bibby Financial Services regularly works alongside turnaround professionals and consultants to assist in bank workouts and provide increased cash flow. The company also offers Chapter 11 or DIP finance and will work with the IRS to resolve tax liens.

Notes to Editors

Bibby Financial Services is a worldwide market leading specialist of business cash flow solutions to small and medium-sized enterprises. Its product portfolio includes receivable finance, factoring, export finance, purchase order finance and specialist solutions for staffing and trucking sectors. Its North American offices are located in Atlanta, Chicago, Dallas, Houston, Los Angeles, Nashville, Phoenix, Toronto, and West Palm Beach, as well as 27 other countries around the world. Bibby Financial Services is a subsidiary of The Bibby Line Group, a 200 year-old privately held company based in the United Kingdom, that provides business-to business services to a variety of industries including shipping, distribution, offshore oil field services, financial services, retail and employment law.

For more information on Bibby Financial Services, visit: www.bibbyusa.com, www.bibbycanada.ca, www.bibbyfinancialservices.com

For more information on The Bibby Line Group of Companies, visit: www.bibbygroup.co.uk