I.T. or any technology company needs readily available capital to adapt, upgrade and service their customer base quickly in response to continual advancements in systems processes, hardware, and software. Additionally prohibitive is that margins in the non-service side of the business are very tight. Often service contract packages and payment of monthly billings are not received early enough keep up with cash needed to operate the business efficiently.
Sometimes a large up-front payment is required to purchase equipment for the new job. Where is the extra cash needed going to come from?
You can simply sell to Philmark part of your existing customer invoices that remains unpaid as often as you wish. This is done by a process known as factoring or accounts receivable financing. The immediate cash generated can be used to purchase equipment or hire additional personnel for a pending new customer work order. If your margins are adequate enough for the entire job the relatively small cost of financing the receivable makes perfect sense.
When servicing larger companies they are often the ones dictating the terms of the contract and the payments themselves. If you want the business you have very little negotiating power to change this unless your product/ service is truly unique and the demand is evident.
If you don’t need to request down-payment deposit monies to secure the job wouldn’t this give you an advantage over the competitor who has to? Wouldn’t you appear to be more financially stable to your customer than the company who has to receive money up front?
To find out more about Philmark’s unique financing programs see below:
“My company grew to a point where my receivables were too high and in order to take my business to the next level I needed better cash flow. So, I talked to Phil at Philmark, and he made it sound so easy. I wasn’t sure if factoring was for me but I tried it out and it was amazing. I was able to take on more clients and grow my company without worrying about cash flow. My customers got the service and products on time and I got paid right away. Philmark took care of everything, including collections.
Thanks so much to Phil and the gang; I would not hesitate to recommend your service.”
Computer Services & Support – Langley