Friday, January 19, 2007

Factoring And Outsourcing

Much has been written about Outsourcing and the apparently detrimental effect it is having on the workforce. Regrettably, we are being conditioned to automatically assume that Outsourcing means having your skills exported halfway around the world where your job can be done for a fraction of your salary.

In Factoring, when the invoices are sold, the Factor becomes the company’s Receivables Management arm. If a company always has its eye on the bottom line, the hard truth is that chasing up on unpaid invoices is neither efficient in terms of cost or time.

The reality is that the company has to focus on Sales, Marketing and Production.

Therefore, Factoring effectively allows a company to outsource non-productive work, without attrition or loss of critical people skills and guaranteeing themselves a steady cash flow, without additional debt.

© 2007 Sanjeev Aaron Williams & Cashwerks All Rights Reserved

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