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Sell Invoices for more than the Face Value. Generally perceived Invoice Value: Many business owners and executives have given very little thought about the value of that sheet of paper called an Invoice. Most have thought the Invoice was a necessary document demanding payment for their products and services delivered and sold to the Customer, they know there is a small Invoice Processing cost associated with the transaction. What business owners and executives must learn, if they have not already, selling Invoices almost always generates free Financing of Working Capital. Furthermore, the financing not only reduces the investment in Working Capital the business has to provide which also yields a boost in the Checking Account Balance in spite of Financing charges. Therefore, you should begin thinking about the “Real Value” of that sheet of paper called an Invoice. If you are not now selling that sheet of paper, you should. Otherwise, your business will continue to invest about 10% of the Invoice Face Value in unnecessary Costs and Taxes. The point is, your business is now investing more Working Capital than is necessary and paying more Taxes than is necessary. Why not relieve those expenditures and generate greater Earnings or use the money for something is really important and necessary? Generally accepted Invoice Definitions:
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