Following the concern, there is another wave of illness: an increase in the number of factoring companies

Following the fear of another corona wave that will lead to significant economic events, Istra Perfect reports a 30% increase in inquiries in recent days. The company said that many business owners have applied in recent days to consider early payments due to fears that the corona will bring with it closures or delays in payments.

According to Yonatan Kamon, CEO"To the company: "In previous corona waves we have seen that many entities delay payments and the current plus 30 becomes a current plus 90 or even longer. While the business owner is required to continue to pay that"D, Current expenses and various liabilities, and the receipts from services rendered are delayed from arriving and therefore many businesses are preparing for the corona wave and they want balances in the current accounts"Q In order to reduce the risk of delayed payments or, God forbid, bankruptcy of customers because it may also drag them into cash flow difficulties."

"One of the solutions to this issue is invoicing – financing invoices, this is because the transaction is done through the sale, the intention is that the business does not take credit but sells and liquidates the open invoice without the right to return to a financing entity. Even if the customer is delayed in payment or, God forbid, goes into insolvency, the problem is with the financing body and the business is not harmed by it." Added Kamon.

Isstra Prefect reports that, "The phenomenon is well known and it is known that in the previous Corona wave companies tried to open lines of credit in banks and expand frameworks but not always this move was successful for a variety of reasons so many business owners have learned that it is advisable to advance customer payments with factoring. In conclusion – in the reality of uncertainty and lack of control, it is advisable for businesses to work to return control and certainty to them, one way is to finance invoices because the business owner both improves cash flow and receives peace of mind."

Photo: freepik

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