Manufacturers Accelerate Cash Flow to Overcome Supply Chain Woes
Manufacturers are feeling the crunch of supply chain strains heading into the new year. Raw materials and parts from overseas are sitting in docks, and major corporations have been putting together their own fleets to move shipments. For manufacturers, finding alternative sources and moving finished products means accelerating cash flow well into 2022.
Understanding Market Drivers and Supply Chain Issues
Supply chain issues are not new, and have been continuing since the onset of the COVID-19 pandemic. Demand is high for everything from raw materials to finished goods, both domestically and abroad. However, waiting times, inspection, COVID guidance, and more are slowing down shipments and distribution. Manufacturers that once relied on other countries for parts and materials now need to find alternatives that are located within the US. A large market shift like that can be more expensive, as domestically sourced items are frequently priced higher than their overseas alternatives. As manufacturers try to fill customer orders, they need to build up ample capital reserves to purchase materials and cover overhead.
Accelerating Cash Flow for Manufacturers
Accelerating cash flow will ensure success for manufacturers for 2022 and beyond. To do this, manufacturers need to catch up on all outstanding receivables by the end of the year, so they can start off 2022 in a strong cash position. Sales made in Q4 often have invoices open well into the next year. Accounts receivable factoring from New Century Financial will convert unpaid invoices into cash within 24 hours. This allows manufacturers to accelerate cash flow and build capital reserves to seek out new suppliers, shippers, or start their own fleets to circumvent bottlenecks and supply chain issues. Additionally, accounts receivable factoring does not place any debt on the books, so manufacturers can boost their finances without taking out loans or compromising their credit ratings.
Accelerate Your Cash Flow Today
New Century Financial specializes in accounts receivable factoring for manufacturers. Our manufacturing clients are able to choose which invoices, or parts of invoices, we factor. We make funds available within 24 hours, and there are no long-term contracts. Get ready to overcome supply chain issues by accelerating your cash flow with New Century Financial. Find out more by reading our “Entrepreneur’s Guide to Factoring”.
You can call us at 866-582-0775 or Apply Now to get started.