The concept of “core competency” refers to the things done by a business that lie at the heart of its ability to manufacture a product or deliver a service. They are strengths relative to other organizations that are not easily imitated and that can be leveraged across different products and markets.

From a management standpoint, employees should spend as much time as possible working on tasks that contribute directly to the business’s core competencies, and as little time as possible working on tasks that don’t. Since managing accounts receivable isn’t a core competency for most companies, many rely on accounts receivable factoring companies to handle their accounts receivable functions.

Going Beyond Collections

An Oakville, Ontario distributor of photo luminescent material used in exit signs and safety equipment began factoring their accounts receivable in 2008 in order to improve their cash flow. It soon discovered that factoring services offer additional benefits as well.