Business Credit Lenders Can Use Your Invoices To Improve Relations With Your Clients
Posted on January 28, 2014 in Factoring
When it comes to the growth and survival of a company, few things are more important than good relationships with clients. If you want to have a strong financial base to work from, then you need reliable repeat customers who you can rely on to buy your products and even offer you ongoing sales contracts that will give you revenue that you can count on.
With that foundation of repeat customers in place, you can then go out and start searching for new clients. Once you have your new clients in place, you have to work to turn those new customers into repeat clients. This is how you expand your base of repeat clients and the very foundation of corporate growth. If you do not have that strong foundation of repeat business, then it is impossible to grow your business with any reliability.
There are several elements that go into creating satisfied and repeat customers. The most important activity your company engages in when it comes to repeat clients is customer service. When an angry client calls your company, all he wants is to have his problem solved. If the problem is solved and the customer is satisfied, then that client remains an important repeat customer. When you have a well-trained and professional staff of customer service agents, you will be able to retain your clients and preserve your financial foundation.
Another important element for retaining clients is quality products and regular product upgrades. You will always have that segment of your client base that is loyal to your reliable and older products, but that segment is offset by the clients who await your latest innovation or product upgrade. In order to satisfy both groups of clients, you need to have an active research and development group along with an ongoing plan for product management that will keep products relevant.
Your customer relations begin with good sales and marketing practices. The best sales people partnered with a professional marketing effort will elicit interest in your products and establish those long-term relationships that you need to establish your financial base. All of these elements cost money and you need a cash flow solution that will allow you to fund these customer relations projects and keep your clients happy.
You could continuously use bank lending to finance all of these customer relations operations, but borrowing from a bank is adding money to your debt that you have not generated yet. If you want to take a huge chunk out of your profit and bottom line, then all you need to do is get caught up in bank lending as a way of funding ongoing operations.
The most sensible solution is to use the revenue from the invoices that you have generated, but this is not always as easy as it seems. Your company has an impressive collection of past due invoices that could help solve all of your cash flow problems, but that cash is not flowing if your customers are not paying their bills. That is where a business credit lender comes in handy.
A business credit lender is much different than bank lending because a credit lender utilizes the money your company has already earned to improve cash flow. The business credit lender will pay you for the value of your invoices, minus minimal lending fees, and allow you to have your cash on or before the invoice due date. With this kind of financial program in place, you can use your own cash to fund all of the services you need to keep your customers happy.
The companies that take their client relationships for granted are the companies that do not stay in business for very long. If you want to retain your profitable client base, then you need to have a professional customer service organization. If you want to attract new clients, then you need to offer exciting new products that your target audience wants and needs. In order to accomplish these goals, your company needs to solve its cash flow problems and use the money from past due invoices to fund these operations.
When you do business with a business credit lender, you will be able to have the cash you need to hire and train professional customer service representatives. You will also be able to properly fund your research and development group to make sure that your products always contain the latest industry innovations. When you can do all of this without relying on bank loans or other forms of borrowing, then you can improve your profit margin and watch your company grow.