It is obvious that the decision to extend credit to our customers is funding for them and a need of extra cash for us. Of course, there are plenty of funding mechanisms, and Arccos is specialist in which has to do precisely with the working capital:
In the above mechanisms it is always involved a third part, bank, factor, etc. which ultimately must also take its profit margin… One way that many companies forget is managing their own portfolios of both customers and suppliers to optimize their cash flow.
Imagine what means reducing from 45 to 30 days of collection, or lengthen the payment of cash to 30 days… It greatly reduces our dependence on third parties and marks down significantly our invoice of finance costs.
The latter alternative requires strict adherence to proper protocol credit and a good image of solvency management that we offer to our suppliers. In Arccos we can help you.