Factoring Blog - Factoring Information articles

Financing For Companies with No Assets

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 […]

Is Factoring Invoices Right For Your Company?

Factoring has been gaining popularity in recent years as a way to help companies that have cash flow problems. Because of this, interest in this financial solution has been growing quickly. This short article will help you determine if factoring is the right solution for your company.  To help you with this, we are going to simplify […]

Handling Slow Paying Clients

Slow paying clients can be one of the biggest threats to your cash flow. Knowing how to handle slow paying clients can mean the difference between having good cash flow and having cash flow problems. There a number of ways to handle this, however we would like to focus on prevention. The fact is that […]

Types of Factoring

Every factor claims to offer their own unique flavor of factoring financing. While it is true that there are some variations in how this solution is offered by each company, there are really two major types of factoring – they are called full recourse factoring and non recourse factoring. This article will help you understand […]

Import Factoring – Funding For Foreign Clients Selling to US Customers

Every so often we get a factoring request from a prospect that it’s abroad. It’s usually an enticing opportunity, the prospect owns a company that is outside the US and is selling products to a well known US company. The sale is usually on terms – usually net 30 to net 60. Depending on who […]

How To Use Factoring To Grow Your Business

Ever since the financial crisis of 2008 payment terms have been getting longer. Customers that used to pay in 30 days are now demanding 45 days to pay. Those that used to pay in 45 days are now demanding 60 – some even go as far as demanding 70 or 80 days to pay. This […]

Is a Factoring Company The Right Solution For Your Business?

In this article we will help answer a common question we get from prospects – is a factoring company the right solution for my business? There is a simple way to determine if a factor will be able to help your business. Just ask yourself the following questions: Do your customers have good credit? Are they paying […]

A Business Financing Alternative For Companies that Can’t Get a Business Loan

Thanks to the banking consolidation wave that has gone through the country, many small banks are being absorbed into larger baking institutions. This is having a negative effect for entrepreneurs and small business owners because small banks where the primary source of lending finance to small businesses. Most larger banks prefer to focus their efforts in financing larger accounts, which leaves […]

Private Financing Vs. Factoring Financing

Every so often we lose an opportunity because the client decides to get a private investor (or an venture capitalist / angel investor) who will provide an equity injection. In many cases, these were opportunities where factoring invoices would have helped the business grow organically without requiring the owner to give up any equity. However, the client […]

Credit Checks – One Little Known Service That Factoring Companies Offer

Most companies that consider factoring invoices do so because they either have an opportunity – or a challenge – that will affect their cash flow. Financing receivables provides them with the liquidity they need to handle their particular challenge or capitalize on the opportunity. However, there is a service that factoring companies provide that is […]

How Factoring Invoices Helps Cash Flow

Most small and medium sized business owners run their companies by timing their income and their expenses. They work very hard to make sure that they pay expenses as close to the due date as possible. Ideally, they want to pay them when some revenue will come in, to ensure there is money in the […]

Using Your Slow Paying Invoices to Finance your Company

One of the by-products of a tightening economy is that many companies have started implementing strategies to keep their cash longer. One of those strategies is to take longer to pay invoices. Companies that used to pay in 30 days are now paying in 45 days. And companies that normally paid in 45 days are […]

One Way to Solve Your Toughest Cash Flow Problem

A nightmare scenario for many business owners is having a lot of invoices that will pay in 30 to 60 days, a whole bunch of expenses that need to be paid today and not enough money in the bank to make those payments. When this happens, the only immediate solution is often to delay payments, […]

Using Factoring to Grow Your Service Business

Most prospects approach a factoring company when they have a cash flow problem. Usually, they are faced with an impending obligation such as payroll, and they need emergency funds to meet it. Although you can use factoring to stabilize cash flow problems, its biggest feature is that it can be used to help a company […]

Factoring with No Minimums

Most factoring companies have minimum required factoring volumes – also called “minimums”. Companies that don’t meet the minimum volumes have to pay an extra fee to make up for the volume that was not financed. A worrying trend One recent trend that is becoming obvious in the industry is that factoring minimums are going up. […]

A Sample Invoice Factoring Transaction

Although each factoring company handles transactions in a different way, most of them follow the same format. This short article will illustrate how a  factoring transaction if financed and provide you with a step by step description of what happens. Customer Setup Before an account can bet funded, the customer needs to be notified. Usually this […]

Financing a Business After a Recession

For most companies, the last recession was a matter of survival. It was not the sort of recession where sales dropped by a certain percentage. Rather, sales evaporated completely and this obliterated a number of small companies who were not prepared adequately. But declining sales was not the only problem. Many companies had a very serious […]

Using Self Liquidating Transactions to Finance Your Company

Most entrepreneurs and small business owners have limited number of options when it comes to financing their businesses. Securing a business loan or line of credit can be very difficult, especially for companies that don’t have a lot of assets or a long track record. Most lending institutions only provide financial support to companies who […]

How to Fix Cash Flow Problems from Slow Paying Clients

Dealing with slow paying customers is always difficult. Small business owners take pride in their customer service skills and often feel uncomfortable when asking customers to pay sooner. They fear that the customer will perceive them as financially week. And, they are also concerned about upsetting the customer.  This makes sense, since you want to […]

No Angels and No VC: Financing Your Company While Keeping Ownership

Selecting the right type of business financing can be very difficult for entrepreneurs – you get to live with the consequences of your decision for a very long time. Many times, entrepreneurs will select an option that solves their problem, even though that option may not offer the best solution for their particular problem. Case […]

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