Factoring Blog

Invoice Factoring Financing For Promotional Marketing Companies

February 29, 2012 By

It’s common for promotional marketing companies to offer their commercial customers anywhere between 30 days to 60 days to pay an invoice. Offering terms like this is a very common industry practice and promotional marketing companies do so because their customers demand it. The problem is that not every company can afford to wait that long to get paid. There are a number of expenses that need to be covered and many of them are due before customer payments are due. When left un-managed, this situation can evolve into a working capital problem that puts the business at risk.

One obvious way to address this problem is to demand faster payments from customers. You can usually do this by offering them an incentive in exchange for a quick payment, such as a 2% discount if they pay in 10 days or less. The problem with this strategy is that it ultimately leaves your customers in control of your cash flow, because they could choose to pay slowly at any time. For many companies, a better strategy is to use factoring.

Factoring solves this problem by reducing the time it takes your company to get the revenues associated with an invoice. This provides your company with the liquidity it needs to pay suppliers and other important expenses. The transaction works by using a factoring company, who advances funds to your promotional marketing company and uses your invoices as collateral. Factoring companies also handle transaction settlements, once your customers pay their invoices on their regular schedules. When deployed properly, factoring can accelerate your cash flow and provide your company with ongoing liquidity.

One attractive feature of factoring is that it’s easier to obtain than other business financing solutions. The most important requirement to qualify is that your customers must have good commercial credit. This is critical because the factoring company is relying on your customers credit as collateral for the transaction. However this is not the only requirement to qualify. Your company should also meet these requirements:

  • You should only invoice for products that has been accepted and delivered
  • Your invoices and your company should be free of encumbrances and liens
  • Your company should not have tax problems, judgments, or pending lawsuits
  • The owners should have industry experience and a good reputation

Perhaps the most important benefit of using factoring is that the financing line is designed to grow with your sales. This is a nice feature of invoice factoring because it enables you to take on new clients while minimizing the worries associated with slow payments. This makes invoice factoring an ideal solution for companies that have working capital problems due to slow paying receivables.

Filed Under: Business Services

Invoice Factoring Financing For Custodial Services Firms

February 29, 2012 By

One of the biggest challenges for growing custodial services companies is offering 30 to 60 day payment terms to their large commercial customers. This is a common industry practice and large customers are accustomed to demanding and getting these terms. But this leaves small custodial service firms in a bind, because few can really afford to wait that long for payment. Many have operating expenses that need to be paid quickly, such as supplies, payroll, and rent. Ultimately, if a custodial services company offer terms to their customers, they will need to manage their cash flow very closely, otherwise they will risk running into serious problems.

One way to address this cash problem is to offer customers a 2% discount in exchange for a quick payment. This strategy can work well but has a serious drawback, it leaves your customers in control of your cash flow because they could choose to pay slowly at any time. For many custodial services firms a better solution is to use invoice factoring.

Factoring accelerates the revenues that are tied to slow paying invoices from large commercial credit worthy customers. It provides your custodial services company with the liquidity it needs to meet important operating expenses. It also provides financial stability and enables your company to take on new customers while minimizing the concerns associated with slow payments. The transaction works by partnering with a factoring company who advances funds to your business while using your invoices as collateral. They also handle transaction settlements which are done once your customers pay their invoices on their regular schedule.

As opposed to other forms of business financing, factoring companies don’t require a substantial amount of collateral or most of the other requirements that large institutions have. What they do require is that you work with large credit worthy customers because your invoices, basically your customers credit worthiness, acts as collateral for the transaction. Additionally, your company will have to meet the following requirements:

  • You can only invoice for delivered and accepted services
  • Your invoices must be free of liens and encumbrances
  • Your company must not have legal or tax problems
  • Company owners and managers must have industry experience and a good reputation

One important benefit of factoring is its flexibility. Your line is designed to grow alongside your sales, as long as your customers and your company meet the factoring criteria. This makes factoring financing a great alternative for custodial services companies that have growing pains and working capital problems associated with slow paying commercial customers.

Filed Under: Business Services

Invoice Factoring Financing For Kosher Food Distributors

February 29, 2012 By

Most kosher food distributors have a common working capital dilemma. They have commercial customers that pay their invoices in 35 to 60 days, because it’s a common industry practice to offer payment terms. Basically, it can take anywhere between a month to two months to realize any revenues for a current sale. On the other hand, most expenses such as payroll, rent, and suppliers have to be paid periodically in 30 days or less. In other words, your revenues come in slowly but your expenses go out quickly. And unless your kosher food distribution company has the financial resources to handle this situation, it will run into financial problems.

One way to address this problem is to use invoice factoring. Invoice factoring accelerates the revenues that are tied to slow paying invoices. This provides your company with the needed liquidity to handle critical business expenses and to take on new opportunities. It works by partnering with a factoring company who advances funds on your slow paying invoices and uses your accounts receivable as collateral. They also handle settlements, once your customers pay on their usual schedule. When used correctly, factoring can provide the financial stability that enables your company to operate smoothly.

As opposed to other forms of business financing, factoring companies don’t require substantial collateral. What they do require is that you have credit worthy customers who pay regularly, albeit slowly. This is because their credit acts as collateral for the transaction. Additionally, your company should also meet this criteria:

  • It must be owned and managed by individuals with industry experience and a good reputation
  • It’s invoices must be free and clear of encumbrances
  • It must only invoice for delivered and accepted products
  • It must be free and clear of legal and tax problems

One of the most important benefits of accounts receivable factoring is that the line is flexible and will grow with your sales, as long as your customers have good commercial credit. This type of flexibility enables you to grow your company while minimizing the worries associated with slow paying customers. This makes invoice factoring a perfect solution for growing kosher food distributors who have cash flow problems due to slow paying customers.

Filed Under: Distributors

Invoice Factoring Financing For Commercial Packaging Distributors

February 28, 2012 By

One of the reasons why many commercial packaging distributors run into cash flow problems is because of how accounts receivable are handled. It’s a common industry practice to give credit worthy customers up to 45 days to pay an invoice, though 60 days seems to be becoming the norm. Although revenues are coming in slowly, expenses such as payroll, rent, suppliers, and other items still have to be paid in 30 days or less. Basically this leaves you with a mismatch in the timing of revenues and expenses, which can create serious problems for companies that don’t have adequate financial resources.

One way to solve this problem is to use invoice factoring. Invoice factoring tackles the accounts receivable side of the equation by speeding up the revenues that are tied to slow paying accounts receivable. This improves your working capital, and leaves you better prepared to handle operational expenses and new sales opportunities. Factoring works through a financial intermediary, called a factoring company, who advances funds against your receivables and settles accounts once your customers pay. When used correctly, this provides an ongoing source of cash flow that provides the financial stability that your business requires.

The most important requirement to qualify for factoring is to have credit worthy commercial and governmental customers. The reason for this is simple – your accounts receivable are the main collateral for the transaction. Additionally, your company should also meet these requirements:

  1. You should only invoice for delivered and accepted products
  2. The owners of your company should have industry experience and a good reputation
  3. Your invoices should be free and clear of encumbrances
  4. Your company should not have legal or tax problems

One key difference between accounts receivable factoring and other business financing solutions is that your factoring line is flexible and can grow with your business. This is because the accounts receivable financing line is tied to your invoices, and therefore to your sales. This makes invoice factoring financing an ideal solution for growing commercial packaging distributors who have working capital problems created by slow paying commercial customers.

Filed Under: Distributors

Invoice Factoring Financing For Office Cleaning Companies

February 27, 2012 By

Office cleaning companies, and custodial companies in general, have very dynamic cash flows. On the expense side of things, they need to cover supplies, payroll, rent, and other expenses that must be paid periodically. On the revenues side, most commercial and industrial customers pay slowly because they demand 30 to 60 day payment terms. In other words, expenses flow out quickly but revenues flow in slowly. While this is usually not a problem for large custodial companies, this can create a working capital problem for small companies that don’t have the financial resources to wait for payments.

One simple way to handle this problem is to offer customers a 2% discount  if they pay in 10 days or less. While this can be a very effective solution, it also has a serious drawback. It leaves your cash flow at the mercy of your customers, who ultimately choose when to pay their invoices. For many office cleaning companies, a better solution is to use invoice factoring. Factoring solves this cash flow problem by providing an advance on your slow paying accounts receivable. This supplies your office cleaning company with the needed working capital to meet recurring expenses, while at the same time providing financial stability for growth. The transactions are usually structured through a factoring company, who handles the advances and settles transactions with your customers pay on their regular terms.

An important difference between factoring and other forms of business financing is that the main requirement to qualify for factoring is to have credit worthy commercial customers. However, this is not the only requirement. Your company must also meet the following criteria:

  1. You must only invoice for delivered and accepted work
  2. Your invoices must be free of liens
  3. Your company must not have tax or legal problems
  4. Company owners and management need to have industry experience and be reputable

When used correctly, a factoring line can provide an ongoing source of cash flow, helping ensure that the office cleaning company always has cash at hand to meet expenses. Additionally, factoring lines can grow dynamically with your sales because they’re tied to your invoices. Most factoring companies are happy to increase your line provided that your company and your customers meet the factoring criteria. This makes invoice factoring an ideal solution for growing office cleaning and custodial companies that have working capital problems due to slow paying customers.

Filed Under: Business Services

Invoice Factoring Financing For Manufacturing Companies

February 27, 2012 By

Managing the cash flow of a manufacturing company can be a very difficult and complex task. On one hand, you have company expenses which usually have to be paid on an ongoing basis. Furthermore most expenses have short time frames (e.g. payroll, rent, utilities, suppliers) , meaning that they are due in 30 days or less. On the income side of the equation, you have commercial and industrial customers that usually demand up to 60 day payment terms. Said simply, expenses go out quickly while revenues come in slowly. This can cause working capital problems for manufacturing companies that don’t have sufficient financial resources.

One way to address this situation is to deploy invoice factoring. Factoring solves this problem by accelerating the speed at which you get the revenues that are tied to your slow paying accounts receivable. This improves working capital and provides your manufacturing company with the cash flow it needs to cover operational expenses and to take on new clients. The transaction is structured using a factoring company, which advances funds against your receivables, while holding your invoices as collateral. Transactions are settled on an ongoing basis as your customers pay their invoices on their usual schedule.

The whole premise behind factoring is that factoring companies are willing to finance your company based on the credit quality of your accounts receivable. Because of this, your customers must have good commercial credit. However, this is not the only requirement. Your company must also meet the following criteria:

  • You must only invoice for delivered and accepted products
  • Your accounts receivable must be free of encumbrances
  • Your company must not have legal or tax problems
  • Management must be experienced and of good reputation

Although factoring is easier to qualify for than other types of business financing, that is not the main or only benefit. The main benefit of factoring is that the financing line is flexible, because it’s tied to your invoices. This means that your funding can dynamically increase to match your sales as long as your customers and your company meet the factoring requirements. This makes invoice factoring an ideal solution for growing manufacturing companies that have working capital problems due to slow paying customers.

Filed Under: Manufacturing

Invoice Factoring Financing For Office Supply Companies

February 27, 2012 By

Managing the cash flow of an office supply company can be challenging at times because of how accounts receivable are usually managed. Rather than getting paid immediately for sales, most office supply distributors have to offer their customers up to 60 days to pay their invoices. While this is a common industry practice, it places small office supply companies that can’t afford to wait for payment at a disadvantage. At best, they struggle with their cash flow to make ends meet. At worst, they develop serious working capital problems that put the business in jeopardy. One way to solve this problem is to use invoice factoring.

Factoring addresses this working capital issue by reducing the time frame between invoicing your client and getting your revenues. However, your clients do not need to pay sooner. Rather, a factoring company advances funds to your office supply distributorship using your accounts receivable as collateral. This provides your company with the funds it needs to cover its operational expenses and to take on new clients. Transactions are settled on an ongoing basis once your customers start paying under usual schedule.

The whole premise behind factoring is that the factoring company funds your invoices because they believe that your customers will ultimately pay them on time. Because of this, it is critical that your customers have good commercial credit ratings. Aside from that, your company should also meet this criteria:

  1. You must only invoice for delivered and accepted products
  2. Your receivables must be unencumbered by liens
  3. Your company must not have tax or legal problems
  4. The owners and managers must have industry experience

When used correctly, an accounts receivable factoring  line can provide the needed cash flow for your business. The line will grow dynamically with your sales because it’s tied to your invoices. Because of this, factoring can be an ideal solution for growing office supply companies that have working capital problems.

Filed Under: Distributors

Invoice Factoring Financing For Chemical Supply Companies

February 24, 2012 By

Chemical supply companies that handle industrial and commercial sales have a common dilemma. Their customers always demand 30 to 60 day payment terms for their invoices. However, not every chemical supply company can afford to offer terms and wait that long for payment. Many need to be paid sooner because they have a number of immediate and recurring expenses that have to be met, such as payroll, rent, supplies, and other items. But if left unchecked and not managed properly, the dilemma can grow into a full blow cash flow problem.

One way to solve this is to use factoring. Factoring invoices accelerates the revenues that are tied to slow paying accounts receivable. It provides your chemical supply company with the needed funds to meet operating expenses and to take on new customers. However, your customers don’t need to pay sooner. Rather, a factoring company intermediates the transaction, advances funds to your company, and then settles accounts when payments are received. When used correctly, factoring financing can provide a stable financial platform that enables your company to operate and grow efficiently.

Qualifying for factoring is relatively simple, especially when compared to other financial solutions. First and foremost, your customers must have good commercial credit. This is important because the factoring company is relying on your customers payment ability to finance this transaction. Aside from that, your company must also:

  • Invoice for delivered and accepted products
  • Have accounts receivable that are free of liens and encumbrances
  • Be free of legal and tax problems
  • Have owners who are experienced in the industry

The most important benefit of accounts receivable factoring is that the line  is flexible and will grow with your business because it’s directly tied to your sales (through your accounts receivable). This makes invoice factoring a great alternative for chemical supply companies that are growing, but have cash flow problems created by slow paying customers.

Filed Under: Industrial

Invoice Factoring Financing For Industrial Supply Distributors

February 24, 2012 By

Most industrial supply companies are used to the fact that they have to extend payment terms to their customers. It’s a common practice to offer anywhere between 30 to 60 days to pay an invoice. However, this can have a negative impact in the cash flow of small and midsize supply  companies that don’t have the financial resources to wait that long for payment. One way to solve this problem is to use business financing.

One business financing product that has been gaining traction as a solution for cash flow problems  is invoice factoring. Factoring solves this common problem by accelerating the revenues that are tied to your slow paying invoices from credit worthy customers. When used correctly, factoring financing can provide your company with the liquidity it needs to handle expenses and to take on new sales opportunities.

Factoring transactions are managed by factoring companies, who act as intermediaries and advance funds against your accounts receivable and handle settlements based on your customers payments. Please note that your customers still pay under usual schedule. Furthermore, since factoring lines are tied to your accounts receivable, most of them will automatically increase as your sales increase. This makes factoring an ideal and flexible solution for growing industrial distributors.

Qualifying for invoice factoring is relatively easy, especially when compared to other business financing solutions. To qualify, it’s critical that you have customers with solid commercial credit. This is important because the factoring company uses the credit worthiness of your customers as collateral for the financing transaction. Aside from this, your company should also:

  1. Invoice only for delivered and accepted products
  2. Have invoices that are free of liens and encumbrances
  3. Be free and clear of legal and tax problems
  4. Be managed and operated by reputable people that are knowledgeable of the business
Filed Under: Industrial

Invoice Factoring Financing For Lumber Distributors

February 24, 2012 By

Most lumber distributors run into cash flow problems because of how their accounts receivable are managed. It’s a common industry practice to offer commercial customers up to 60 days to pay an invoice. However, the lumber company also has a number of recurring expenses that have to be paid quickly, such as payroll, rent, and suppliers. This creates a mismatch in the timing of revenues and expenses which can ultimately lead to working capital problems.

One way to address this problem is to use invoice factoring. Invoice factoring accelerates the revenues that are tied in slow paying invoices. This provides lumber distributors with the liquidity they need to pay business expenses and to take on new opportunities. Factoring works by partnering with a factoring company, that advances funds against your invoices and handles payment settlements. Note that your customers still pay on their usual schedule.

The most important requirement to qualify for invoice factoring is to have credit worthy customers. This is important because your customers credit worthiness acts as the main collateral for the transaction. These is not the only requirement however. Your company must also:

  1. Invoice for delivered and accepted products
  2. Have accounts receivable that are free of liens
  3. Be free and clear of tax and legal problems
  4. Be managed by reputable and competent individuals

One of the main benefits of factoring is that the line is flexible and will grow with your business. This type of flexibility enables you to focus on growing your business rather than on chasing invoices. Because of this, accounts receivable factoring is a popular choice for growing lumber distributors that have cash flow problems due to slow paying customers.

Filed Under: Construction

Invoice Factoring Financing For Consulting Companies

February 7, 2012 By

Managing the cash flow of consulting company can be very complicated.On one hand you have your consultant and employees who need to be paid every week or every other week. On the other hand, you have customers who usually pay their invoices on net 30 to net 60 day terms. Obviously, it is the responsibility of the consulting company to cover all expenses while waiting for the customers to pay. And unless the consulting company has to cash reserve or has access to a line of credit, this situation can lead to working capital problems.

One way to solve this problem is to ask customers to pay sooner. However, this requires customer cooperation. And ultimately, this strategy places your cash flow at the mercy of your customers. For many, a better alternative is to finance their invoices using invoice factoring.

Invoice factoring solves this problem by shortening the time period between invoicing the client and collecting the revenues for the invoice. Your customers don’t need to pay sooner though .Rather,a factoring company advances funds against your accounts receivables and holds your invoices as collateral. This enables you to get the working capital you need to run your business without having to worry about the timing of you customer payments.

Factoring transactions are usually structured as a purchase of an account receivable made in two installments. The first installment, called the advance, covers anywhere between 80% and 90% of your invoice. You get the advance as soon as you invoice your customer for completed and verified work. Your company then gets the remaining 10% to 20% (less the factoring fee) as a second installment once your customer pays the invoice in full. When use correctly a factoring line can provide ongoing working capital, helping ensure that the consulting company always have cash at hand to meet its obligations.

Qualifying for an accounts receivable factoring line is relatively easy, at least when compared to other products. The most important requirement is that your customers must have good commercial credit. This is of paramount importance because your customers credit and their ability to pay invoices on time manner is the collateral that the factoring company is relying on. Additionally, your company also needs to meet the following requirements:

  • Your invoices must be for completed and accepted work
  • Your company must be free and clear of tax and legal problems
  • Your invoices must not be encumbered by any liens

The most important benefit of invoice factoring is its flexibility. Since the line is tied to your invoice,s it will grow dynamically to match your growing sales provided that your customers and your company meet the factoring requirements. Because of this, many consider factoring to be an ideal solution for growing consulting companies that have solid opportunities that are being challenged by working capital problems.

Filed Under: Business Services

Invoice Factoring Financing For Technology Consulting Companies

February 7, 2012 By

Payroll is probably one of the most important expenses for a technology consulting company. Employees are the company’s most valuable asset and making sure that there paid on time is critical for the success of the business. For many companies this can require some financial juggling. This is because employees need to be paid on a weekly or biweekly basis. However, most technology customers get payment terms and pay their invoices in 30 to 60 days. In the meantime, the consulting company has to cover all expenses while it’s waiting to get paid.

While this is not a problem for companies that have a line of credit or have some accumulated cash reserves, this can be a serious problem for growing companies that don’t have the resources. Companies that can’t afford to wait for payment usually have two options – neither of which is good.The first option is to keep taking jobs and risk running into working capital problems due to slow paying customers. The second option is to simply turn away some customers, especially those that demand unaffordable payment terms. Recently, a third option has been gaining traction. The option is to finance your invoices using invoice factoring.

Factoring invoices reduces the time between invoicing a client and receiving revenue for your invoices. It does not require your customers to pay sooner though. Rather, a factoring company advances funds to your technology consulting business using your invoices from credit worthy customers as collateral. This provides you with the funds you need without having to worry about slow paying clients. The transaction is finally settled once your end customer pays on the usual timetable.

Most accounts receivable factoring transactions are structured as a purchase of accounts receivable in installment payments. The first installment is called the advance and covers anywhere between 80% and 90% of your outstanding accounts receivable. This is provided to your company as soon as you invoice your customer and the invoice can be verified. Your company gets the second installment, which is the remaining 10% to 20% (less the factoring fee), once the invoice is paid in full.

Factoring companies are used to working with growing technology consulting companies therefore factoring lines are very accessible. The most important requirement to qualify is that your customers must have good commercial credit. This is critical because the whole transaction hinges on your customers ability to pay their invoices on time. Aside from that your company has to meet the following requirements:

  1. You must invoice for completed and delivered work
  2. Your invoices must be free and clear of liens and encumbrances
  3. Your company must not have any legal or tax problems

One of the most important benefits of factoring line is it’s flexibility. Your line is designed to dynamically adapt to growing sales, provided that your company and your customers meet the factoring criteria. This makes invoice factoring a perfect solution for growing technology consulting companies that have growth opportunities that are being hindered by working capital problems.

Filed Under: Technology

Invoice Factoring Financing For Computing Equipment Distributors

February 7, 2012 By

Most computer equipment distributors run into working capital problems because they usually have to pay their suppliers quickly but also have to wait up to 60 days for their own customers to pay their invoices. If the company has a line of credit or other available financial resources, this is usually not a problem. They can just tap into their resources to meet their expenses, and then wait until their customers pay. On the other hand, companies that don’t have substantial resources are left with two options. They can grow their sales, but risk having working capital problems. Or, they can limit their sales, and risk losing customers. Neither option is a good one. Recently, a third alternative has been gaining traction. This alternative is called invoice factoring.

Factoring invoices this problem by reducing the time between making the sale and receiving the revenues from the sale. Your customers don’t have to pay sooner though. Rather, a factoring financing company advances funds to your company using your slow paying invoices as collateral. This provides your company with immediate working capital to pay suppliers and meet other expenses. The transaction then settles once your end customers pay their invoices under their regular schedule. When used correctly, a factoring line can minimize the challenges created by slow paying customers and can help your company take on new business.

Most factoring financing transactions are structured as the purchase of an invoice, using two payment installments. Your company gets the first installment when the computing equipment is delivered and accepted by the customer. Usually the first advance is between 80% and 85% of your invoice. You can then use these funds to pay suppliers and other business expenses. The second installment, which is the remaining 20% to 15% (less the factoring fee), is provided once your customer pays the invoice in full.

Qualifying for an invoice factoring line is usually easier than qualifying for other business financing products. The most important requirement is that your customers must have very good commercial credit. This is very important because factoring companies use your customers credit as a collateral for the transaction. Additionally, your company must also meet the following requirements:

  1. You can only finance invoices for delivered and accepted product
  2. Your invoices must be free of liens and encumbrances
  3. Your company must not have any legal or tax problems
  4. The company owners must have a good reputation

One of the most important advantages of invoice factoring is that it’s very flexible and can grow with your sales. Since the line is directly tied to your invoices, it will dynamically grow to match your revenue, provided that your sales are to credit worthy customers and provided that your company needs the factoring requirements. Because of this, invoice factoring financing is a great solution for computer distributors that have growing sales opportunities that are being challenged by working capital problems.

Filed Under: Business Services

Invoice Factoring Financing For Security Guard Companies

February 7, 2012 By

Managing the working capital resources for security guard company can be very challenging. The company needs to carefully manage the cash inflows and outflows to ensure that it always has the resources to cover operating expenses. One clear example of this is payroll. Most security guard agencies need to pay their employees on a weekly or biweekly basis. However, most agency customers pay their invoices on net 30 to net 60 day terms. Companies that don’t have the resources to wait this long to get paid can run into working capital problems. If left unchecked, these working capital problems can grow and threaten the stability of the company. One way to address this problem is to use the business financing tool called invoice factoring financing.

Factoring financing solves the problem in a very simple way. A factoring company advances funds to the security guard company and holds the slow paying invoices as collateral. This provides the security agency with the working capital it needs to meet payroll and other important expenses. The transaction settles once the end customers pay their invoices on the regular schedule. Most factoring transactions are structured as the purchase of an invoice in two installments. The first installment, which covers about 90% of the accounts receivable, is provided as soon as the work is invoiced. The second installment, which covers the remaining 10% (less the factoring fee), is advanced once the end customer pays the invoice in full.

Qualifying for invoice factoring is easier than qualifying for other financial products. The most important requirement to qualify for invoice factoring is to have credit worthy commercial customers. This is critical to because the credit worthiness of your customers is a collateral that the factoring company is relying upon. Aside from that, your security guard agency also needs to meet the following requirements:

  • Your invoices and time cards need to be for completed work
  • Your invoices need to be free and clear of liens and encumbrances
  • Your company must be free of legal and tax problems

Perhaps the most important advantage of using invoice factoring financing for security guard companies is that it provides a flexible financial solution. The factoring line is designed to be dynamic and can grow with your revenues, provided that your company meets the factoring criteria. Because of this, factoring can be a great financial tool for growing security guard companies that have great opportunitie.s but are being held back by working capital problems.

Filed Under: Security

Invoice Factoring Financing For Plastic and Synthetic Resin Suppliers

February 7, 2012 By

Expanding net 30 to net 60 day payment terms is a common practice industrial sales. However, this practice can leave plastic and synthetic resin suppliers that can’t afford to wait for payment at a substantial disadvantage. These companies are usually faced with two choices, neither of which is good. They can refuse to give payment terms and risk losing the customer. Or, they can give payment terms and risk having working capital problems. One way to solve this common challenge is to use the business financing tool known is invoice factoring.

Factoring solves this common working capital problem in a simple way. A factoring company provides an advance using your slow paying accounts receivable as collateral. This gives your plastic and synthetic resin supplier the funds it needs to meet critical operational expenses and minimizes the worries about slow paying customers.  When used properly, a factoring financing line can provide an ongoing source of liquidity, ensuring that the company has always cash at hand to meet expenses and capitalize on opportunities.

One of the most important advantages of invoice factoring is that it’s relatively easy to qualify for. The most important requirement to qualify for invoice factoring is to have credit worthy industrial and commercial customers. This is very important because the credit worthiness of your customers if the collateral that the factoring company is relying upon. Aside from that, your company must also meet the following criteria:

  1. Your invoices must be for delivered products
  2. Your invoices must be free and clear of encumbrances
  3. Your company must not have any legal or tax problems

Most invoice factoring transactions are structured as two funds advances. Your company gets the first advance, usually up to 85% of your outstanding accounts receivable, as soon as the product is delivered and invoice for. This provides the immediate working capital your company needs. Your company then gets the second advance, which is the remaining 15% less the factoring fee, once your customer pays for the invoice in full.

Most accounts receivable factoring lines are designed to be very flexible. Since they are based on your invoices, they can easily track and match your sales growth, provided that your customers are credit worthy and provided that your company meets the factoring criteria. This makes factoring an attractive solution for plastic and synthetic resin suppliers that have solid growth opportunities that are being held back by working capital problems.

Filed Under: Industrial

Invoice Factoring For Drapery Manufacturing Companies

February 7, 2012 By

Providing net 30 to net 60 day payment terms is a common practice in that drapery manufacturing business. While many commercial customers demand to have payment terms, offering payment terms can have negative consequences for many manufacturing companies that don’t have the necessary financial resources to do so. For these companies, offering extended payment terms can eventually lead to serious working capital problems.

One way to solve this problem is to ask customers to pay sooner. However, this strategy can backfire because it ultimately leaves your customers in control of your cash flow. For many drapery manufacturing  companies, a better solution is to use the business financing tool known as factoring.

Factoring solves this problem by minimizing the amount of time between the delivery of the product and your receipt the funds for the sale. This provides your manufacturing company with the working capital it needs to meet its obligations and to capitalize on new sales opportunities.

Invoice factoring works by using a financial intermediary call the factoring company. The factoring company advances funds to your manufacturing company and holds your accounts receivable as collateral. The transaction then settles once your customers pay their invoices in full on their regular payment date. When used correctly, factoring can optimize your working capital and ensure that your company has always cash in hand to meet its obligations.

As opposed to other business financing tools, invoice factoring is relatively easy to obtain. The most important requirement to qualify is to have credit worthy commercial customers. This is critical because the credit worthiness of your customers is the collateral that the factoring company uses to finance the transaction. Aside from that, your company should also meet this criteria:

  • Your invoices must be for delivered and accepted product
  • Your are invoices must be free of liens and other encumbrances
  • Your company must be free of legal and tax problems

One advantage of factoring over other products is that it’s very flexible and can grow dynamically with your sales, provided that your customers and your company meets the funding criteria. Additionally,most factoring companies are used to working with clients that have cash flow problems and can offer funding solutions to them. Because of this, factoring can be an ideal solution for drapery manufacturing companies that have growth oportunities that are being held back by working capital problems.

Filed Under: Industrial

Invoice Factoring For Chemical Product Suppliers

February 6, 2012 By

Most chemical product suppliers and manufacturers sell their products to their industrial customers on credit. This means that they have to deliver the product immediately but have to wait anywhere between 30 to 60 days before they get paid. Selling on credit can be a problem for companies that don’t have the financial resources to wait that long for payment. Many companies have immediate expenses such as payroll and suppliers, that need to be met sooner than that. One way to address this problem is to request faster payment from customers. However, this strategy seldom works and ultimately puts your company at the mercy of your customers. For many, a better solution is to implement a business financing tool known is invoice factoring.

Invoice factoring solves this common working capital problem by accelerating the revenues that are locked in slow paying receivables. It provides the funding that your company needs to meet its obligations and to capitalize on new sales opportunities. The transaction works using a financial intermediary called a factoring company. The factoring company advances funds to your business using your slow paying receivables as collateral. The transaction is settled once your customers pay their invoices on the regular schedule.

When used correctly, a factoring financing line can provide the ongoing working capital that your company needs to operate and grow. Qualifying for a factoring line is a lot easier than qualifying for other types of business financing products. The most important requirement is that your customers must have good commercial credit. This is important because factoring companies consider the credit of your customers to be the most important collateral you have. Aside from that it’s also important that your company:

  1. Invoice only for delivered products
  2. Be free from legal and tax problems
  3. Be free of liens and other encumbrances

The most important advantage of working with factoring companies is that they are used to working with companies that have cash flow problems, and are comfortable extending them financing. Most factoring lines are designed to be flexible and can increase dynamically to match your sales, provided that your customers have good commercial credit and provided that your company meets the factoring company’s requirements. These reasons make invoice factoring a great solution for chemical products suppliers and manufacturing companies that have great opportunities and need working capital to execute their growth plans.

Filed Under: Industrial

Invoice Factoring Financing For Fertilizer Supply Companies

February 6, 2012 By

Most fertilizer supply companies have to sell their products on credit. This means that they have to provide the product today but need to wait up to 60 days to get paid by their commercial customers. This can create a problem for companies that can’t afford to wait up that long to get paid. This forces companies to chose between two options – both of which are unattractive. They can chose to make the sale, and face working capital problems. Alternatively, they can choose forgo  the sale but face losing customers. Neither choice is a good one. For many fertilizer supply companies a better choice is to use a form of business financing known is invoice factoring.

Factoring financing solves this problem by providing an advance against your slow paying invoices. This provides your company with the liquidity it needs to meet its obligations without having to worry about slow paying customers. The factoring transaction is structured using a financial intermediary called an invoice factoring company. The factoring company advances funds to your business using your invoices as collateral. This provides your company with immediate funds that can be used to meet its expenses. The transaction settles once your customers pay their invoices on their usual schedule. When used correctly, invoice factoring can provide your company with an ongoing supply of funding, enabling it to  meet new business opportunities.

One of the main advantages of invoice factoring is that it’s relatively easy to obtain, at least when compared to other business financing solutions. The most important requirement is that your customers must have good commercial credit. This is critical because your customers credit represents the collateral that the factoring company is depending on. Aside from that, your company must also meet the following requirements:

  1. Your invoices must be for delivered product
  2. Your invoices must be free of liens and encumbrances
  3. Your company must not have any legal or tax problems

Most factoring financing lines can easily accommodate growing sales. The line is designed to be flexible and will grow with your revenues, provided that your sales are to credit worthy customers and provided that your company meets the factoring company’s funding criteria. This makes factoring invoices an ideal business financing solution for fertilizer supply companies that have growth opportunities that are being held back by working capital problems.

Filed Under: Distributors

Invoice Factoring Financing For Adhesive And Sealant Suppliers

February 6, 2012 By

Most adhesives and sealants product sales to industrial customers are made on extended payment terms. This means that the supplier will deliver the product immediately and then give net 30 to net 60 day payment terms to the customer. While this is a common practice, the reality is that few companies have the financial resources to wait that long for payment. Most suppliers have a number of obligations that they have to meet on a recurring basis, and offering payment terms can create working capital problems. One strategy to solve this challenge is to ask the customer for quicker payment terms. However, this strategy seldom works because large industrial customers usually like – and demand – payment terms. For many, a better alternative is to use a business financing tool known is invoice factoring.

Invoice factoring solves this working capital problem by advancing funds to your company using your slow paying invoices as collateral. This provides your supply business with immediately liquidity to meet its obligations, while minimizing the problems caused by slow paying customers. When used correctly, invoice factoring can put your company on the stable financial footing and can provide an ongoing source of financing that enables you to capitalize a new growth opportunities.

Factoring transactions are structured using a financial intermediary called a factoring company. The factoring company advances funds against your invoices and then holds the receivables until payment. Once your customer pays the invoices in full, the transaction is settled. One of the main advantages of invoice factoring is that it is relatively easy to obtain. The most important requirement to qualify is the credit worthiness of your industrial customers. This is because their credit worthiness is the collateral for the funding transaction. Aside from that, your company has to meet the following requirements:

  1. Your invoices must be for delivered product
  2. Your invoices must be free of encumbrances
  3. Your company must be free of legal and tax problems

One of the advantages of working with factoring companies is that they are more flexible than conventional institutions. They are used to working with companies that have cash flow problems and are willing to offer products that will grow with your business. This makes invoice factoring an ideal solution for adhesive and sealants suppliers that have great growth opportunities but are being held back by working capital problems.

Filed Under: Distributors

Invoice Factoring For Office Supply Companies

February 6, 2012 By

Extending net 30 to net 60 payment terms to customers  is a common practice for office supply companies. Most large corporate  customers demand payment terms and office supply companies that want to remain competitive have to offer them, or risk losing the sale. However, offering payment terms can be very challenging for companies that don’t have the financial resources to wait up to 60 days to get paid. Because of this,  a company that can’t offer payment terms is usually left with two options, both of which are an unattractive. They can decline the sale, or they can make the sale but face potential working capital problems. One way to address this problem is to use a business financing tool known as invoice factoring.

Invoice factoring solves this problem by minimizing the waiting period between making the sale and getting funds your for invoice. This provides the office supply company with the needed working capital to meet its obligations, enabling the owners to focus on growing the business rather than to focus on chasing payments. The factoring transaction works using a financial intermediary, call the factoring company, that advances funds against your slow paying invoices. This provides your company with immediate working capital while the factoring company holds the invoices as collateral waits to get paid. The transaction settles once your customers pay under usual schedule.

One of the most important advantages of invoice factoring is that it’s easier to obtain than conventional forms of business financing . The most important requirement is that your commercial customers must have good credit . This is critical because your customers credit is the main collateral that the factoring company is relying on. Aside from that your company must also meet the following criteria:

  • Your invoices must be for delivered products
  • Your invoices must be free and clear of liens
  • Your company must not have tax or legal problems

The biggest benefit of using invoice factoring is that most factoring companies structure their funding products to be flexible. This means that you’re factoring line can grow dynamically with your sales, provided your sales are to credit worthy customers and provided that your company meets the factoring criteria. Because of this, factoring is considered a flexible business financing solution that can be used by office supply companies that have great opportunities that are being challenged by working capital problems.

Filed Under: Business Services
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