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Invoice factoring is probably the most popular form of business financing. Companies across the United States are using invoice factoring to eliminate the need for traditional loans, and to increase efficiency. Many industries rely heavily on invoice factoring, and since it has proven itself time and time again, they should. Every industry from medical to transportation can benefit from invoice factoring. If you’re not convinced read below and find out the top 5 reasons to obtain invoice factoring services. Read the rest of this entry »

Accounts receivable factoring is one of the most commonly known terms in the business world. Businesses everywhere understand that accounts receivable factoring is the easiest and best way to obtain funding. For years businesses have taken advantage of them factoring because of its speedy approvals and ease of qualification. But there are some dangers that lie within accounts receivable factoring. It is important to understand what these dangers are and how to avoid them so that you can reap the full benefits from your business funding. Things like varying interest rates, deceitful contract terms, instable loans and others will have a dramatic impact on your business. It is prudent for long term success to analyze and pre pare when you acquire accounts receivables factoring. Read the rest of this entry »

Accounts receivable simply means the money owed by customers (which may include organizations, companies, and corporations) to another business entity in exchange for various goods or services that have been utilized but not paid for. Receivables usually come in the form of lines of credit that have various time periods ranging from a few days to a year.

In the balance sheet of a company, accounts receivable is recorded as an asset since this is a legal obligation for a customer to remit cash for short term debts. On the balance sheet, accounts receivable basically reflects the amount that customers owe the company. Read the rest of this entry »

Factoring may not be the world’s oldest profession, but not far from it. This financial practice can be traced back to the Roman Empire. Factoring was the dominant form of finance in the American colonies before the Revolution (mainly textile firms). Over the past few decades, consolidation has created two distinct types of funding sources (called factors): large, institutional-owned factors and several small, independent factoring firms. Read the rest of this entry »

Although factoring volume exceeded $112 billion in volume in 2005, which represented a 9.3% increase over the prior year, many decision makers tend to either employ other methods or choose not to go after additional financing to grow their business.  If a company is either in a high-growth mode or is experiencing serious cash flow issues and is not able to establish a working line of credit with a bank, why wouldn’t they turn to factoring?  There are three main concerns and objections that many decision makers have that can be overcome with educating the customer about the product. Read the rest of this entry »

As an owner of a company, you may have felt frustrated because your cash is tied up in fixed inventories and so you don’t have enough cash flow to energize your business.  And keeping track of the invoices and the slow payments may distract you from the more pressing needs of your business. Read the rest of this entry »

Many businesses that fail are profitable when they go under. Costs of sales, carrying inventory and rapid growth can absorb your business’ cash flow. And waiting 60 to 90 days to get your invoices paid can slow your sales and business growth. All business’ have to pay rent, suppliers and meet payroll on a regular basis. If most of your cash is tied up in slow paying invoices you may miss important opportunities to Read the rest of this entry »