Most invoice financing transactions have two components, the advance and the rebate. The advance rate is provided to your company as soon as the invoice is financed, and can range from 70% to 95% of the receivable. The rebate is basically the amount that was not advanced, less any fees or reserves. For example, if [...]
Most factoring transactions are structured by financing the invoice using two installments – the advance and the rebate. The advance is the installment that is wired to your account as soon as the factoring company receives the invoice that you want to finance. Depending on your transaction, the advance may range between 70% of the [...]
The quick definition. A factoring company specializes in financing small and medium sized businesses that have cash flow problems because their customers are paying their invoices in 30 to 60 days. Offering credit terms is difficult Although customers are paying their invoices within the guidelines of their contracts, many small businesses cannot afford to wait [...]
We have launched another video on our invoice factoring group channel. This video shows an invoice factoring transaction’s structure. It shows the basic details and you can also watch the video here :
We have just released the latest video on our YouTube channel. This one covers the subject of factoring companies. You can watch the latest video here:
Most invoice factoring transactions tend to be very hands on, and therefore demand that all the parties work well together. This is perhaps one of the drawbacks of this type of financing. It has a lot of moving parts and requires a little bit of effort to make sure that everything works out well. This [...]
Are you looking to learn about factoring accounts receivable? We have just released a video about the subject. You can find it on the invoice factoring group’s YouTube channel or you can watch it here:
Most commercial clients will demand 30 day to 60 day payment terms as part of their sales contracts. This means that their vendors have to deliver the goods and then wait up to 8 weeks before they receive payment. Clients do this for one simple reason – it improves their cash flow. It’s like getting [...]
The factoring financing industry is pretty competitive. Because of this, it’s not unusual for prospects to shop around to see if they can get a better deal somewhere else. However, changing factoring companies can be tricky and many times you will be better off staying where you are. If done incorrectly, changing companies can disrupt your business [...]
Although helping a client change factoring companies is something that is done every day, it’s a complicated matter that has to be handled delicately. The process has a lot of moving parts that have to be carefully orchestrated to ensure a smooth transition from the old provider to the new company. The biggest problem is that a mishap [...]
Most companies that submit an application for financing don’t provide any additional information other than what is requested in the application. This is fine, since they are doing exactly what the application is asking for. However, you can improve your chances of qualifying for financing, and getting better rates, by doing one extra thing: submitting [...]
Here is another product video, this one describes how freight bill factoring helps carriers and brokers. You watch the video here:
Here is a video that answers the question – what is a factoring company? The video also shows a sample transaction to help viewers understand this product. You can watch it here:
We are always striving to educate people through different channels. Here is a video that discusses factoring and shows a sample transaction. You can watch the video here:
One of the challenges for growing transportation carriers is finding shippers that offer quick pays. This is important because quick pays simplify one of the toughest jobs in the transportation company – managing money. Transportation company managers are often faced with a constant tug-of-war between their income and their expenses. Expenses tend to flow quickly [...]
The owners of small freight carriers constantly face challenges with their cash flow. They usually run lean operations that have little money to spare. On one hand, they need to pay their drivers, fuel, maintenance, and equipment costs, on a regular basis. But on the other hand, most customers pay their freight bills on 30 [...]
Having assets that can be used as collateral is one of the most important requirements to qualify for a business loan, or most conventional forms of business financing. And it makes sense, banks and lending institutions want to protect their position by ensuring that you have the wherewithal to pay them back. The problem with [...]
The oilfield services industry has been growing at a very decent clip in the past few years. Because of this growth, a number of entrepreneurial folks with industry experience have started their own businesses hoping to tap into this opportunity. Many of these new companies offer a number of services, such as environmental services (e.g. cleanup), [...]
Most transportation carriers and freight brokers prefer working with shippers and companies that offer quick pays. As its name implies, customers that offer quick pays usually pay their invoices within 10 days. This is great for the cash flow of carriers and brokers who can use the quick payments to cover their business expenses. This makes [...]
Energy drink manufacturing companies usually sell their products to wholesalers and retailers. Most of these sales are structured using sale terms which give the client up to 60 days to pay for the invoice. This works well for clients Although not advantageous to the manufacturing company, terms work very well for clients. It most instances, [...]