As we round the second half of the fourth quarter, manufacturers are looking to end the year on a high note so they can start 2022 off strong and roll out plans for growth. The last thing manufacturers need is to put plans on the back burner because their revenue is still tied up in unpaid client invoices from the previous year.Â
Previously, we had discussed manufacturers that are reporting cash flow issues during the Covid-19 pandemic. Fortunately, there is a way to catch up on all outstanding receivables, accelerate cash flow, and end 2021 poised for growth for your industry
 Q4 Cash Flow and Receivables
Accumulating as much revenue as possible in the fourth quarter allows manufacturers to make accurate projections for growth and budget accordingly. When sales are made and invoices are issued with staggered payment windows of 30, 60, or 90 days, the outlook is less clear, and manufacturers can only guess when those receivables will be paid. Additionally, having staggered receivables during the busiest quarter of the year can cause gaps in cash flow. Those gaps can prevent manufacturers from purchasing supplies and raw materials, covering payroll, or paying other expenses.
 Maximizing Cash FlowÂ
To get the most out of Q4 and create accurate projections for growth in 2022, manufacturers need to ensure fast turnaround on receivables. Unfortunately, there is no way to force clients to pay faster than the payment schedules printed on their invoices. However, accounts receivable factoring convert unpaid invoices into cash quickly and efficiently. By using accounts receivable factoring, manufacturers can accelerate cash flow and build up capital reserves to position themselves for growth at the start of next year. Best of all, accounts receivable factoring does not place any debt on the books, so manufacturers can preserve their credit scores.
 Get Ready for Growth in 2022Â
How do you choose from the best factoring companies for manufacturing? New Century Financial provides the most comprehensive accounts receivable factoring services to manufacturers nationwide. We will turn unpaid invoices into cash and make funds available within 24 hours, so you can supercharge your cash flow and build up the reserves you need to start off next year in the strongest position possible. To get started, contact the team at New Century Financial today.
Manufacturers cannot afford to have outstanding receivables in Q4 if they want to position themselves for growth in 2022. Learn more about debt-free growth strategies from manufacturers.