Stabilize Cash Flow For Your Corporate Training Company
Posted on June 24, 2014 in Cash Flow
To get an idea as to how much the corporate world has evolved in the past few decades, one only needs to look as far as how companies handle the training of their employees today versus years ago. It used to be that companies would have a trainer come into the office to train employees, or they would send employees to a certified manufacturer location to be trained. In many cases, the training was done by an experienced employee who would teach the rest of the staff the company way to do things. The company way was always best because it allowed the company to maintain its policies without having to change the training.
The thing that changed the corporate training world was the advent of computer technology. There has always been certification programs in various industries that certain employees were required to take, but those certifications often required years of training and the testing was done at a central corporate location. The computer certifications that employees needed could be studied in a weekend, but the testing had to be delivered in a very specific way. After a while, computer hardware and software manufacturers created a long list of certifications that specialists needed to have and the corporate training industry was born.
Computer Training Continues To Drive The Training Industry
Instead of doing training and testing employees in-house, companies now provide employees with study materials and then send employees to specialized training centers in the local area. These are not the hardware or software manufacturer's locations, but these are organizations that have been certified by the manufacturers to teach and test for these various levels of accomplishment. Engineers, tech specialists and even general staff all need to become certified in various kinds of software programs and these training facilities were there to give the kind of training and testing that companies needed.
It did not take long for companies to see the value in paying a separate corporate training company to take care of all training. For example, it became cheaper for the company to pay a separate training company to do the employee orientations as opposed to always having paid staff members on hand who were only there to do orientation. The company could get the kind of quality orientation classes it needed, but it only paid an outsourcing rate to the corporate training organization. After a while, employees were being sent to off-site training for everything from learning the latest software program to ongoing testing for aptitude and managerial skills.
The Costs Of Running A Training Company Are Often Misunderstood
Over the years, the corporate training industry has grown so fast that there are now many successful organizations training employees for clients all over the world. As with outsourcing IT support or building maintenance, the costs to outsource corporate training were so much lower than having a company do the training itself that it was a good business move to send the training off-site, or bring an outsourced training organization into the company office building and let them take care of all corporate training for the entire staff.
When people outside the training industry look at a corporate training organization, they may not see the many costs that go into keeping a organization like that going, but those costs are persistent and high. For example, the trainers who deliver certification classes must, themselves, be certified. In some cases, a trainer will be hired who already has the necessary background to teach a class, but there are the trainers who need to be certified and that can cost the company money. Another cost associated with corporate training is the constantly changing software that manufacturers use to certify specialists and the persistent changes to general training software as well. The task of keeping pace with changes in training software can be extremely expensive.
Corporate Training Companies Seek Out Long-Term Arrangements With Customers
Whenever possible, a corporate training company seeks out a long-term contract with a client and that is also something the client wants as well. It is expensive to set up a new training client and it is expensive for the client to try and find a new training organization as well. Once the training organization has the necessary personnel and materials in place to deliver on what the client needs, both parties benefit from a very long and lucrative relationship. But the ongoing costs required to train employees can cause challenges to employees that most training organizations struggle to solve.
When a training organization looks for funding, it needs something perpetual. Bank lending is too finite and expensive to be of any long-term use to a training company. A training company that has to continuously worry about payroll and the costs of upgrading software does not need to add interest and service charges to those concerns as well. To improve cash flow, a corporate training company requires a cash flow that is based on its outstanding invoices, and not just the invoices that have been paid on time. To meet financial obligations, a training company needs to have access to all of its cash flow at all times. That is why receivables-based funding is the right answer.
1st Commercial Credit Has The Right Receivables-based Funding Program For Your Training Organization
When it comes to helping service companies get the cash flow they need, it is critical to work with a company that has experience working within the various service industries. 1st Commercial Credit is an international leader in receivables-based funding for small to medium sized business and we have years of experience in service industries just like the corporate training industry. We understand the challenges that face your training organization, which means we have the flexible funding programs you need to get the kind of cash flow your company requires to stay in business. With 1st Commercial Credit attending to your company's cash flow, you can look ahead to growth projects and the future.
1st Commercial Credit uses your outstanding invoices as collateral for cash advances. We will advance you the face value of your invoices, minus our minimal lending fee, and then get you the cash flow you need to meet all of your ongoing obligations. 1st Commercial Credit is not a bank, so we do not offer the same frustrating red tape that a bank offers. We can approve your account in days and then advance funds off an approved account in hours. We utilize an Internet-based approval method that can approve your invoices as collateral in just minutes. We are experts in providing you with the receivables-based funding program you need to compete in the corporate training industry.
If you are tired trying to find ways to meet the ongoing financial obligations of your corporate training company, then it is time to apply for an account with 1st Commercial Credit. We have great resources and an international network of affiliates that allows us to advance funds in up to 17 different currencies. Our process is fast and effective, and our programs are customized to your company's needs. Do not allow your past due invoices to dictate your financial decisions. Get a receivables-based funding solution from 1st Commercial Credit and create the kind of cash flow that you have always wanted and the kind of cash flow you have always needed.