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Answer from our Guest Expert Lillyvette Montalvo - page 3 Another Way to Save On Cash Flow Also consider commercial receivables funding when your cash flow is starting to truly put a crunch in your business. Since you work with corporate clients, it's also likely that you extend them open trade terms. In other words...you may be offering them 15 or 30 days to pay you once the service is complete. This allows you to work with more businesses and to also attract larger contracts. The drawback is that they may take 45 or 60 days to pay you instead. This is where receivables financing comes in handy...it works with the "time value of money." To find out more about how receivables financing -- also known as factoring -- can help you, visit our site. One word of caution: you can only factor if you have a gross profit margin of 12% or more! Keep that in mind, yet remember that you can always "play" with your fees depending on the size of the contract and the particular client you have...basically, you can alter your gross profit margin depending on each client. Hope all of this helps! Best of success to you and your partner! Lillyvette Montalvo
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