2013년 11월 23일 토요일

About 'collection of an accounts receivable'|Accounts Receivable / Collections Analyst — NYC







About 'collection of an accounts receivable'|Accounts Receivable / Collections Analyst — NYC








Factoring               is               predominantly               becoming               the               main               solution               when               a               firm               considers               a               new               or               alternative               accounts               receivable               financing               strategy.

As               customer               payments               slow               down               (               many               firms               seem               to               be               waiting               60               to               sometimes               120               days               for               the               customer               payments               )               the               challenge               of               running               your               business               from               a               cash               flow               perspective               increases               .

The               irony               is               of               course               that               many               customers               still               post               30               day               terms               on               their               invoices               and               purchase               order               acknowledgements               from               their               client               base.

We               should               not               fail               to               mention               of               course               that               there               is               one               very               obvious               'non               -               financial               'solution               for               your               company,               and               it               does               not               even               involve               additional               financing               effort.

It               is               simply               to               enforce               collections               more               strongly               and               reduce               what               is               known               as               your               'day's               sales               outstanding               'to               a               more               manageable               level.

Any               major               dent               you               can               put               in               your               'D               S               O               'will               improve               working               capital               and               cash               flow.

There               is               of               course               the               other               non               financial               alternative,               which               is               the               other               side               of               the               equation,               and               that's               to               slow               payables,               which               also               improves               cash               flow               -               but               you               don't               want               to               do               that               at               the               expense               of               your               suppliers               which               you               value.


               So               we               have               discussed               why               you               want               to               factor               receivables               and               to               some               extent               what               your               non               -               financial               solutions               are.
               But               let's               just               make               sure               we               understand               what               we               are               talking               about.

When               you               are               working               under               a               bank               facility               your               receivables               are               collateralized               or               pledged               as               a               security               for               an               overdraft.

That's               the               best               simple               way               we               have               of               explaining               to               clients               what               factoring               is               not.

What               is               is               ,               though,               is               the               sale               of               your               invoices               ,               on               a               daily,               weekly,               or               monthly               basis               (               the               flexibility               is               your               choice               )               ,               thereby               increasing               your               advance               rates               on               those               receivables               to               the               80-90%               range               depending               on               the               type               of               facility               you               have               structured               .
               More               cash               flow               and               more               immediate               cash               flow               is               the               most               obvious               solution               to               factoring               and               accounts               receivable               financing.

There               are               two               sides               of               the               coin               though,               and               on               the               other               side               of               this               type               of               financing               strategy               is               the               fact               that               you               might               find               yourself               reporting               on               your               receivables               more               often               that               you               would               have               with               a               bank               type               revolver               line               of               credit.

You               also               might               be               less               reluctant               to               negotiate               longer               payment               terms               for               your               customers,               as               in               fact               it               will               as               your               firm               that               directly               carries               this               financial               cost.
               We               spoke               of               the               price               you               have               to               pay               in               factoring               receivables.

When               we               site               down               with               clients               we               advise               them               there               is               a               real               price,               i.e.

the               financing               or               invoice               discounting               cost,               but,               more               apparently,               the               major               change               in               the               way               day               to               day               business               changes               from               a               paper               flow               and               customer               interaction               basis.

If               you               negotiate               the               wrong               type               of               facility               you               might               find               yourself               in               the               same               situation               that               many               of               our               clients               have               found               when               they               come               to               us               with               financing               woes,               which               is               simply               that               they               feel               that               in               spite               of               the               significant               cash               improvement               they               in               fact               feel               that               their               factor               firm               partner               is               running               their               business.


               Factoring               facilities               in               Canada               are               available               with               firms               who               have               very               high               professional               standards,               are               well               funded               to               meet               all               your               financing               needs,               and               in               fact               tailor               their               financing               service               to               your               business,               once               they               understand               the               uniqueness               of               your               challenges.
               Many               business               owners               who               know               little               about               factoring               seem               to               know               one               thing,               that               it               can               be               viewed               as               intrusive               by               their               customers.

You               can               eliminate               that               'intrusiveness               'by               ensuring               you               have               the               right               type               of               facility,               one               that               is               priced               right,               has               straightforward               terms,               and               works               on               a               day               to               day               basis               for               you               and               your               customers.

The               best               factor               funding               facility               in               fact,               we               feel,               is               the               one               that               allows               you               to               bill               and               collect               your               own               receivables,               while               at               the               same               time               reaping               all               the               benefits               of               accounts               receivable               discount,               as               factoring               funding               is               also               known.
               So               what's               our               bottom               line               in               our               cash               flow               information               interchange               -               it               simply:
               -               Determine               if               you               can               achieve               self               financing               status               via               the               more               prompt               collection               of               receivables
               -               If               financing               is               in               fact               needed               consider               factoring               financing               as               a               working               capital               strategy
               And               ,               most               important,               work               with               a               credible               ,               trusted               and               experience               advisor               who               will               model               a               working               capital               and               cash               flow               solution               that               reaps               benefits               and               cash               on               terms               you               can               live               with               on               a               day               to               day               basis               .






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