Outsourcing business services and cash flow
One of the people in the office has recently been reading a very interesting book called “The 4-Hour Workweek” (www.fourhourworkweek.com) which is a very popular book on how to outsource your life and business which comes highly recommended. Now this book has rubbed off on a lot of us here which brings me to a thought about everything that can be outsourced in your businesses daily operations. You constantly hear people complaining that they work such long hours, I’ve heard business owners say “I work 16 hour days!” Now the book certainly doesn’t mean you only work four hours a week but it’s a simple concept about de-cluttering your life and outsourcing things that can be done quicker and easier than you.
Some common things to outsource are services such as payroll, human resources, bookkeeping, payables, collections, and accounting. We even outsource some of our reception, mailing, web design, and database management administration.
Invoice factoring or invoice finance is more than just a business loan, it can be considered outsourced cash flow. By factoring accounts receivables to better manage and even out cash flow short falls, a company can save time and money lost on scrambling to make ends meet. A factoring company provides credit management and collections capabilities that are built into the factoring process and are included in the cost of funding. These added features can offset the price of using factoring when avoiding a bad account debtor or collecting on a difficult invoice is taken into account. When dealing with the stigma attached to needing invoice factoring from outside sources, it may be better to recognize it for what it is, outsourced cashflow.