Every day, businesses are trying to understand their clients better. From analyzing sales and marketing metrics to running focus groups and more, businesses know that if they can get better insights into their clients, they can gain a competitive advantage. One of the key points in dealing with new and existing clients is understanding their creditworthiness.
What Is Creditworthiness?
Creditworthiness is used a lot in the financial sector. It’s a metric used to gauge how likely it is that a potential borrower will default on a loan. The term goes beyond simple credit score calculation and takes into account the timeliness of paying down obligations, business history with vendors and suppliers, other factors. Repayment history is a major point with lenders, because it counts as 35% of a company’s credit ratings. This is why a business can have a history of consistently high sales, great relationships with clients, and still get turned down for a loan. But how can businesses make use of creditworthiness?
Creditworthiness and Your Clients
How would you conduct business if you were able to check the creditworthiness of your clients? To have the insight to see if they were likely to pay their invoices early, on-time, or if they would age out to collections could be a game-changer for your business. Fortunately, that service is available with accounts receivable factoring from New Century Financial. Our factoring services provide cash for your unpaid client invoices within 24 hours so you don’t have to experience gaps in cash flow. There are not long-term contracts, no debt, and we let you choose which invoices or parts of invoices to factor. As an added feature, we provide a tool so you can check on the creditworthiness of your clients to help you make crucial business decisions.
At New Century Financial, we provide accounts receivable factoring for businesses of all types. Our team will work with you to understand your needs and create a factoring strategy to help you reach your goals. Whether you want to correct cash flow issues, get fast access to working capital, or build up your reserves for growth projects, we can help. Contact New Century Financial today to get started.