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9/23/2019

How to Choose a Furniture Industry Factoring and Accounts Receivable (AR) Management Provider

When it comes to financing working capital, furniture companies often rely on retained earnings, personal funds or lines of credit. The goal is to have as much cash as possible to flow to the bottom line, so funding for everything—from credit to collections—is from day-to-day operations.  

For furniture companies, one of your company’s most valuable assets is its accounts receivable. When you outsource your accounts receivable management, bookkeeping functions and cash applications, you can optimize your accounts receivable more effectively. 

Outsourcing to an experienced and seasoned team can help companies:

  • Quickly gain access to working capital
  • Improve operational, credit, and AR management efficiencies 
  • Reduce credit losses
  • Focus on growing your business

If you’re on the hunt for a professional AR management provider, here are four things to look for:

1. Expertise in furniture industry factoring

The best team to manage your accounts receivable is one that is experienced in the furniture industry and is passionate about helping you realize your dreams. Some furniture accounts receivable management experts have grown up in the furniture business or spent most of their careers in furniture financing. Look for a company with an in-depth industry background, and you will reap the benefits. Seek a company that understands current and emerging market trends along with the challenges that can affect furniture suppliers and influence demand and profits.

2. Relationships matter

The company that provides your accounts receivable management is only as good as the relationships it maintains. A company worthy of your business should know your retailers, including how to assess their creditworthiness and how to collect from them. You want to be able to put CIT’s connections to work for you. Most of all, enjoy CIT’s long history of managing customer relationships on behalf of clients.

3. Support throughout your growth stages

As your company expands and takes on new opportunities, a great AR management provider helps support your changing needs. When talking with a potential provider, ask if they offer comprehensive accounts receivable management and lending services that can help you throughout your growth stages. Whether you need help managing your collections or require a loan on your receivables, look for a provider that can help keep your company on a steady path to success.

4. Flexibility

Your company has unique needs, and your AR management provider should be prepared to accommodate them. Consider providers who offer services like:

  • Providing private label mitigation solutions
  • Working with your current bank. Your provider can manage credit approvals and receivables while your bank lends you the money to operate.

    CIT prioritizes getting to know our clients. We connect with them at the High Point Furniture Market and other industry events – and listen to their concerns and pain points. We take pride in developing customized accounts receivable management solutions that help furniture manufacturers and importers maintain cash flow, reduce operating expenses and protect assets.

    Talk to our furniture invoice factoring and AR management experts today.

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