The Just In Time Approach (Jit) To Business Finance

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Cash flow finance, the just in time alternative

Cash flow finance, the just in time alternative

I am sure you are familiar with this inventory strategy associated with the processes of reducing stock and therefore carrying a minimum cost.

The Japanese car manufacturers have pioneered this approach for its many advantages: Improve productivity, eliminates waste, improves quality, saves costs and brings production in line with demand.
Now, you are asking yourself, what does this manufacturing theory got to do with Factoring or debtor finance?

After I wrote the heading, I started to ask myself the same question and here is what I have to offer you, however can always add a few more ideas that is what this blog is all about, sharing information and becoming very successful.

Bring cash in as you need it: In line with your requirements, the more invoices you factor the more cash will flow through your business.

Improves productivity: By having cash flowing regularly you can upgrade your equipment and become more competitive.

Cost efficient: Frees time spent by staff trying to call debtors instead of more proactive activities such as sales and customer service calls.

Minimize risk: A factoring company will run a credit check on your behalf, so you don’t have unnecessary risk when taken new customers in.

Gives you purchasing power: A healthy cash flow business gives you the opportunity to negotiate better trading terms with current suppliers search for new ones and eliminate unreliable ones.

By establishing a debtor finance facility: You can free your home by discharging the bank’s mortgage over your main asset.

So you must agree with me now that debtor’s finance has a few points  in common with the Just in Time theory, I suggest you look seriously at this option before you renew your current overdraft or before extending your current one, it would a healthier alternative.

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