To help alleviate your concerns and to educate your customers about medical staffing invoice funding, consider the following:

Medical staffing factors only work with agencies who qualify for credit.

Similar to getting a bank loan, staffing agencies go through due diligence before an invoice funding company will agree to purchase their receivables. If your company is able to secure financing, it is a positive sign that you operate a stable, growing business. Moreover, the ability to factor is dependent on the creditworthiness of your customers, not your own.

Medical staffing invoice funding is beneficial for both you and your customers.

Your customers are most likely accustomed to taking 30, 60 or even 90 days to pay for your staffing funding services. By factoring, you can maintain a “business as usual” relationship – your customers can continue to utilize your medical personnel and have time to pay for their shifts. The only difference with medical staffing invoice funding is that your company benefits from having money today, in order to more readily satisfy current obligations, while still experiencing growth.

Factoring is a smart business move for growing medical staffing companies.

A business most often uses financing obtained through the sale of receivables to expand and take on larger contracts, without compromising the quality of their services. By getting money sooner than later, your staffing business has the resources to focus on critical success issues – sales, operations and growth – while still meeting its demand.

Many of your customers may already deal with factors and may not be aware of it.

Factoring is one of the oldest methods of providing working capital to help businesses solve their cash flow needs. Credit cards transactions are actually the most common form of factoring used every day. Many hospitals and physicians’ practices factor their medical receivables due from insurance companies and therefore are already familiar with how factoring works and why companies choose to do it.

Educating your customers about why you decided to obtain staffing funding services should eliminate many of their concerns, and invoice funding firms are available to help explain your new financial situation. For too long, factoring was only available to large, multi-billion dollar corporations. Now there are specific invoice funding firms that provide medical staffing funding services to companies like yours, so you can enjoy both the perception and the reality of being a growing, profitable company.

Philip Cohen is the founder and president of PRN Funding, LLC, which is an extraordinarily focused niche player in the medical staffing invoice funding market place. Through a process known as factoring, PRN Funding provides staffing business owners with the financial resources needed to grow and effectively compete in the industry. With no minimums or fixed terms, PRN Funding http://www.prnfunding.com provides staffing companies with flexible and immediate access to capital.

Article reprinted with permission by PRN Funding, LLC.

Banks are not approving loans like they used to and recurring cash flow challenges for medical supplies companies are not going away.

Medical supplies factoring has been evaluated in the past, but this alternative financing option is becoming a popular and convenient solution to cash flow problems.

Most medical supplies companies do not receive payments for their goods until weeks after they have been delivered. In fact, a common cycle occurs when companies need to order additional products to ship out to their customers before they have been paid by those same customers.

By factoring their receivables,these companies can improve their cash flow tremendously, giving them enough cash to buy new inventory regardless of when their customers pay.

Factoring is Not a Bank Loan

Factoring offers a huge advantage for companies because unlike a bank, the factor’s main concern is the credit rating of the customer who is responsible for paying the invoice. In addition, the only collateral used by the factor is the receivable, whereas a bank would often require personal collateral to secure a loan. Also, many of factoring firms do not require long-term commitment. Therefore, a company can factor its receivables for as long as it likes.

Factoring Promotes Business Growth

Another advantage of factoring is that it alleviates the hassles of the collections process. Once the company sells the receivable, the collection process can be handled by the factor. Medical supplies companies don’t have to worry about making collections calls, following up on skipped invoices or hunting down missing documents. This saves time and money and allows companies to allocate resources to more important day-to-day operations of the business.

Factoring is Easier to Find than a Bank Loan

There are thousands of factoring companies to choose from, so finding a company that will factor medical supplies accounts receivables is easier than ever. For example, type ‘medical supplies factoring’ into a search engine, and a slew of factoring companies will show up in the results. While there are many factoring companies to choose from, they differ on a large scale. Some may serve an array of industries, while other only factor invoices for a specific industry. Some operate nationally, while some focus their attention in one geographic region. Of course, there will also be many different advance rates and factoring fees amongst factoring firms.

With the current economic climate, it’s likely that more medical supplies companies will turn to factoring firms for financing. It allows start-up companies to develop and helps veteran companies continue to thrive.

Philip Cohen is the founder and president of PRN Funding, LLC, which is an extraordinarily focused niche player in the medical supplies factoring market place. Through a process known as factoring, PRN Funding provides business owners with the financial resources needed to grow and effectively compete in the industry. With no minimums or fixed terms, PRN Funding provides medical supplies companies with flexible and immediate access to capital. We give you the freedom to factor what you want, when you want, whom you want, for as long as you want. Prior to founding PRN Funding, Mr. Cohen was an executive officer of The MRC Group, a national provider of Medical Transcription Services. Contact Philip Cohen at toll-free 866.776.5407 or via email at pcohen@prnfunding.com. Please visit PRN Funding, LLC on the web at http://www.prnfunding.com/

Article reprinted with permission by PRN Funding, LLC.

What differentiates a factoring company from a bank?

First and foremost, since factoring is not a loan, there is no debt on your company’s balance sheet. Moreover, factoring firms have the ability to make a quick decision regarding your medical billing funding options, while banks may take weeks-even months-to approve a loan.

Furthermore, factors determine lines of credit based on the creditworthiness of your customers, while banks focus on your company’s financial history and cash flow. In other words, a funding agency looks to your company’s future while banks place emphasis on your company’s past.

How long does it take to be approved for factoring funding solutions?

In general, a funding agency will begin its due diligence process after receipt of a signed contract. This process can last anywhere between 1-5 business days, and money is moved at its conclusion. Thereafter, a company can receive funds in as little as 24 hours within verification. See our factoring process and learn our medical billing funding options can benefit your business.

What information does a business owner need to provide to a factor in order to begin the process of coming up with funding options?

Required paperwork varies among factors, however, there are a handful of documents that most all will expect. Most likely, the owner of a medical company will be asked to provide a copy of your company’s most recent accounts receivable and accounts payable aging reports, Articles of Incorporation or Organization filing, copy of owner’s driver’s license, voided copy of a check, a master customer list, a sample contract, and of course, invoices to factor.

What happens if my customers don’t pay an invoice?

This depends on whether your company entered into a non-recourse or recourse agreement with the factor. Within a non-recourse agreement, the funder assumes the credit-related loss. However, most medical billing solutions (factors) do not assume the risk of non-payment due to disputes regarding quality or timeliness of your company’s medical billing services. On the other hand, if you have a recourse agreement, your company will have to reimburse the factor for any unpaid invoices. This is usually accomplished by having the past due invoice deducted from the next advance or replacing it with another factored invoice.

Can a medical billing service qualify for funding if it’s a new business or has past credit problems (i.e. bankruptcy, IRS liens, and judgments)?

Yes. A reputable medical billing factoring company will still consider your application if you have credit problems or a recent bankruptcy because the credit decision is based primarily on the creditworthiness of your customers. However, tax problems are handled on a case-by-case basis, so be sure to let you funder know if you have any IRS issues.

Philip Cohen is the founder and president of PRN Funding, LLC, which is a focused player in the medical invoice funding marketplace. Through a process known as factoring, PRN Funding provides medical business owners with the financial resources needed to grow and effectively compete in the industry. With no minimums or fixed terms, PRN Funding (http://www.prnfunding.com) provides medical companies with flexible and immediate access to capital.

Article reprinted with permission by PRN Funding, LLC.

Way back in the day, (maybe six or seven years ago), most marketing plans consisted of an advertising budget, maybe some PR, a newsletter and occasional updates to the company’s website. Depending on the size of the company, a marketing director could spend a small fortune on a basic “shotgun approach” where they place ads in local papers or trade magazines and hope that someone found it interesting enough to purchase their product or service. Just scan through the daily mail you receive at your home or office and you’ll find flyers and postcards from companies trying to earn your business. I’m not saying these approaches are not effective, but with advent of social media, many businesses with little or no budget can market their goods and services in a very effective manner.

Unless you live under a rock, almost everyone is familiar with social media and how it has changed the way we communicate with each other. Social networking sites such as Facebook have over 750 million subscribers with each user having an average of 130 friends. From a business perspective, entrepreneurs and developers from more than 190 countries build with Facebook Platform. Twitter, which just celebrated its five year anniversary in May, has about 175 million subscribers that send over 456 “tweets” per second! There are many other forms of social media other than social networks such as podcasts, blogs, RSS feeds to name a few.

What makes this social media movement so exciting for factoring companies and other small businesses is that any company looking to get noticed can do so with little or no money. Setting up an account with Facebook, Twitter or LinkedIn is free and a very good place to start. On LinkedIn, start by joining groups within your own industry to keep track of the latest news and events. Create a Facebook page for your business and get your friends and colleagues to “Like” your page. On Twitter, go to the “Who to follow” section and search for people and companies with similar interests.

Just as it is import to be part of social media for your business, it is even more important to participate by posting information with good content. What exactly does good content mean? Here are a few general guidelines that I like to use before I post information on our website:

1. Post useful information – this may sound like a no brainer, but you would be surprised how often I come across posts from friends and colleagues with no real point.

2. Entertain – try not to be boring. Liven up your post with some humor, or a personal experience on how you might have done something better.

3. Be an expert – know your facts about the topic so your followers look to you as a resource when they have questions.

What makes social media appealing to so many businesses is that there is no barrier to entry, little or no cost and you can use it as much as you want. Not a bad deal at all.

About the Author: Don D’Ambrosio is the president of Oxygen Funding, Inc., an invoice factoring company located in Lake Forest, California. For more information, he can be reached at don.dambrosio@oxygenfunding.com or you can visit his company’s website at www.oxygenfunding.com.

Oftentimes, factoring prospects annualize the percentage charged by factors, extrapolating three percent per month to an interest rate of 36 percent per year. In the world of healthcare staffing financing, this scenario is like comparing apples to oranges.

When comparing a bank loan with invoice factoring, it’s important to keep a few things in mind:

• A factor does not loan money like a bank does. Rather, a healthcare staffing accounts receivable factor purchases invoices at a discounted rate. Factoring is a form of short-term funding, so a discount rate should not be converted to an interest rate. For example, some firms offer a two percent discount (2% for net 10) for quick payment. In a year, there are roughly 36 10-day periods. Using the annualized percentage parallel, that comes out to 72% “interest.” Are these companies really paying 72% for quick payment? No, and healthcare staffing factoring companies don’t earn 36% interest either.

• Moreover, a factor is continuously advancing and collecting funds, compared to a bank that provides the money only one time, the day that the loan is received. An accounts receivable factor has the ability to grow as its clients grow. Once a company uses the funds from a bank loan or exceeds its credit limit, there’s little room for it to grow.

• Banks approve business loans or lines of credit based on a company’s historical operating and financial performance, a factor’s main criteria is the creditworthiness of a prospect’s customers. Banks tend to shy away from business owners who are just starting up, going through seasonal growth, have bad personal credit or have too much concentration of their sales with one or two customers. Many factors are able to look past the above criteria because their decisions are based off of a prospect’s customers’ ability to pay. So it’s very possible for a business that has creditworthy customers to work with a healthcare staffing factoring company even though they have been previously turned down for a traditional bank loan.

• The loan process with a bank is time-consuming and cumbersome, and it could take weeks or even months to receive the loan proceeds. Whereas a factoring firm’s application and approval process can take less than a week, and factors have an ongoing ability to approve additional lines of credit quickly.

• Oftentimes, a bank loan requires collateral in addition to a company’s accounts receivable. The only collateral that a factor requires is the company’s accounts receivable. A bank will most likely require business owners to personally guarantee the loan as well, and factoring companies won’t always require a personal guarantee to advance money.

• Taking out a business loan creates debt on a company’s balance sheet, and credit ratings go down because of loan limitations. On the other hand, healthcare staffing funding through a factor increases credit ratings by creating better cash flow and helping the company pay their bills promptly.

• Whereas banks only loan money, there are a multitude of services that factoring companies provide their clients in addition to ongoing funding. Some of these supplementary services include: posting payments, dispersing reports, handling collections and reviewing credit for their customers’ clients.

When looking at the big picture, entrepreneurs have to weigh the costs of factoring against not having immediate cash. More often than not, the decision comes down to either selling the accounts receivable or putting up with crippling cash flow problems and missed sales opportunities.

Philip Cohen is the founder and president of PRN Funding, LLC, which is an extraordinarily focused niche player in the healthcare staffing funding marketplace. Through a process known as factoring, PRN Funding provides business owners with the financial resources needed to grow and effectively compete in the industry. With no minimums or fixed terms, PRN Funding provides healthcare staffing agencies with flexible and immediate access to capital. We give you the freedom to factor what you want, when you want, whom you want, for as long as you want. Prior to founding PRN Funding, Mr. Cohen was an executive officer of The MRC Group, a national provider of Medical Transcription Services. Contact Philip Cohen at toll-free 866.776.5407 or via email at pcohen@prnfunding.com. Please visit PRN Funding, LLC on the web at http://www.prnfunding.com/

Article reprinted with permission by PRN Funding, LLC.

Outsourced medical billing providers are just one type of business that is being affected by the “double credit crunch.” On the one hand, banks have tightened up on their lending criteria, and most are slashing credit lines instead of extending them, which means the likelihood of a medical billing provider securing bank funding is slim-to-none. On the other hand, even though an outsourced company’s main job is to bill insurance companies correctly so physicians (their customers) get paid quicker, those same physicians are oftentimes notorious for stretching out their payables.

Fortunately, there is an alternative financing option that can help speed up the payables process.

Medical billing accounts receivable factoring is the conversion of receivables into cash by selling outstanding invoices to a factor. A viable option for medical billing companies in the early stages of business development and /or during rapid growth, accounts receivable factoring is a financial solution that gives medical billers immediate cash to manage operations more efficiently. Here are some additional key concepts about this practical financing alternative.

Medical Billing Accounts Receivable Factoring is:

• A way to fill the gap between when your company provides outsourced billing services and when the physicians pay. Simply put, medical billing invoice factoring can turn weeks into hours or days.

• Based on your customers’ credit history, not yours. If your company is providing billing services to a creditworthy physician’s office or medical facility, then your business is a good candidate for accounts receivable factoring.

• A simple, fast method to sustain your “business as usual” relationship with your customers. Your company can continue to provide medical billing services to your customers with a set-term payment; but with accounts receivable factoring, you no longer have to wait to be paid. By working with a factoring firm, your company can easily obtain cash advances of 80% of the invoiced amount. Cash can be obtained within hours and as often as needed.

• One of the oldest methods of providing working capital. Dating back 4,000 years, receivables factoring has long been used as a feasible and easy way for businesses to obtain cash flow in order to cover expenses while experiencing growth.

• A chance to obtain cash without providing personal collateral or increasing interest expense. Invoice factoring is not a loan and does not “muddy up” your medical billing company’s balance sheet. You do not accrue interest or penalties. The medical billing factoring fee is clear and objective; it is based on the size of the invoice, the length of time it takes to collect the payment, and the creditworthiness of your customers.

• An opportunity to build your outsourced medical billing company’s credit: With adequate cash flow, you can use money from accounts receivable factoring to clean up your debts as well as pay overhead, salaries and invoices. This will improve your credit history and make it easier to obtain credit from vendors and other financial institutions in the future.

By working with an accounts receivable factoring company, your company’s cash flow problems can be solved. In most cases, a medical billing company can receive the majority of what’s owed to them within hours of selling their invoices to a factor. Factoring for your medical billing company will help you avoid falling prey to today’s “double credit crunch” that so many other small businesses are enduring as a result of the current economic climate.

Philip Cohen is the founder and president of PRN Funding, LLC, which is an extraordinarily focused niche player in the medical billing accounts receivable funding market place. Through a process known as factoring, PRN Funding provides healthcare service business owners with the financial resources needed to grow and effectively compete in the industry. With no minimums or fixed terms, PRN Funding ( http://www.prnfunding.com ) provides health service providers with flexible and immediate access to capital.

Article reprinted with permission by PRN Funding, LLC.

How Groupon makes Factoring Invoices look downright cheap for small business financing.

As consumers we love getting our Groupon! Who doesn’t want a 50% or better discount?

Groupon delivers coupon deals straight to your email in box. Anything from skydiving to liposuction, nachos to nighties, and burgers to basket weaving. It catapulted the success of Groupon, but is it really a good deal for business owners?

I just finished reading a business advocate article that compared the popular daily deals to a very expensive loan aka loan sharking. At first it seemed a bit harsh – until you start penciling out the numbers.

Crunching the Daily Deal Numbers

The lure or sales pitch of daily deals like Groupon is… marketing with no upfront payment!

This is especially appealing to cash strapped business owners wanting more customers. However it can be a very expensive proposition. Generally the numbers break down as:

• 50% Discount to customer
• 25% Fee to deal provider
• 25% Net to business owner

On top of that the business owner has to wait to get their portion, in installments, over time. The arrangement will differ by agreement but a common example was 1/3rd in 5 days followed by 1/3rd in 30 days and the balance within 60 days. So on $100,000 of sales it would be:

$100,000

-$50,000 Discount

-$25,000 Fees

=$25,000 Received by Business Owner

(33% or $8,333 immediate advance with balance paid out over 60 days)

In effect the business owner is getting an advance on future cash flow.

Comparing Factoring Fees

Small businesses that need to improve cash flow will also turn to factoring invoices. Again this varies by arrangement but a typical break down would be:

$100,000 Accounts Receivable

-$5,000 Factoring Fees (Averages 2-5%)

=$95,000 Received by Business Owner

(80% or $80,000 immediate advance with the balance less fees received when the invoice is paid in full by debtor).

Factoring vs Groupon

Now Groupon isn’t really factoring nor is it a loan. Plus factoring offers advances on business-to-business receivables and not business-to-consumer. But it is interesting to see that factoring fees look pretty attractive when compared to other options available to cash strapped business owners.

If you’d like to read the entire article on the daily deals subject (it was part of a series) you can find it at: http://techcrunch.com/2011/06/13/why-groupon-is-poised-for-collapse/

For more information on factoring fees and factoring companies read:

Accounts Receivable Factoring Examples

Comparing Factoring Companies

How I Run My One Person Factoring Business

Factoring Company Competition

Along with this newly found popularity, competition within the industry has increased and everyone wants to make a deal. Common slogans are,

“Same day funding since we base our approval on your client’s credit,” or “Even if your credit is poor, we can still get you funded.”

Conventional wisdom within the factoring industry has always stressed that deals of this nature can be funded since it’s the client’s customer (otherwise known as the account debtor) that will actually be paying the factoring company. For example, a small consulting firm with little or no credit can get funded as long as their customer is creditworthy.

While much of this long standing rule is true, should all the focus of your due diligence be solely on the account debtor?

Providing Factoring Services In Today’s Economy

As I mentioned earlier, the same current economic climate that has created opportunities within the asset based lending industry can also be your worst enemy. Unfortunately, many businesses needing factoring services have taken some tremendous hits over the last few years. We have seen industry declines in apparel, transportation, manufacturing and staffing to name a few.

If your prospect is in a declining industry and sales have slowed, generally, some bad things start to occur. Unless they have sufficient cash reserves (which most don’t otherwise they would not be calling you) vendor payments get pushed back, payroll may be late and taxes go unpaid. Many times your prospect may need factoring just to stay afloat until the inevitable happens and you are left holding the bag.

Dealing with a client who has just declared bankruptcy is the last place where you want to be as a factor. I am not a lawyer and if you ever find yourself in this position, I would suggest that you consult one as soon as possible.

Reducing Factoring Risks

While there are no exact formulas for you to avoid risky clients, there are several steps you can take in your due diligence to mitigate your risk and limit your exposure:

• Run current credit reports on your factoring prospect. There are numerous credit reporting agencies you can utilize that will provide as little or much as your budget can afford.

• Gather the most current quarterly and year-end financial reports available. If the client has audited financial statements, read the auditors notes to the financial statements. Also, look for trends on both the balance sheet and well as the profit and loss.

• Request the last two years of business tax returns for both the federal and state returns including payroll tax filings. If necessary, also request personal returns of the owner and or majority shareholders.

• Check with the state where the business is domiciled to see if they are in “Good Standing.” If a business is not in “Good Standing” or “Suspended” it usually indicates they are delinquent with their annual reporting requirements, have not paid their taxes, or have some other form of dispute with the state.

• If the prospect is required to maintain a license to conduct his or her trade, check with the local licensing board to see the license is current. If the license is suspended, you may not have a valid claim against the debtor or in the event of a dispute.

• Run a UCC-1 search to see if there are any liens against the business. This is extremely important since you as the factor will always want to be in first position on all collateral. In some cases there may be another UCC-1 financing statement already in place. This is not necessarily a negative indicator as the prospect may have an existing loan with a bank or equipment financing with another lender. In some cases the other secured party may subordinate their filing to allow you to be in first position on the prospect’s accounts receivable.

These are just a few basic steps you can take when performing due diligence on your prospect. Every deal is unique and your due diligence may vary according to the type of prospect and the industry in which they participate. Remember, no matter how well your Factoring Agreement between your prospect and you is written, as Benjamin Franklin so correctly stated, “An ounce of prevention is worth a pound of cure.”

About the Author: Don D’Ambrosio is the president of Oxygen Funding, Inc., an invoice factoring company located in Lake Forest, California. For more information, he can be reached at don.dambrosio@oxygenfunding.com or you can visit his company’s website at www.oxygenfunding.com for accounts receivable factoring.

Throw in the current economic climate, and the chance of an entrepreneur obtaining a conventional bank loan is slim to none. When loans are no longer an option, business owners have to find a short-term funding option to keep them from dipping into their personal savings accounts or having to rely on friends and family for operating cash.

Over the past decade, the main fallback has been small business credit cards. During better times, credit card companies actively pursued the small business market. Entrepreneurs were enticed with low introductory interest rates and high credit limits. In addition, banks started offering small credit lines to entrepreneurs who didn’t meet conventional loan requirements, and vendors started relying on the efficiency of credit card payments.

Needless to say, the small business credit card caught on like rapid fire. Today, nearly 60% of the nation’s small businesses rely on credit cards to help fund their daily operations, according to the National Small Business Association.

Yet as the economy worsens, entrepreneurs are seeing their interest rates going up and their credit limits going down. With credit card delinquency as high as 12 percent among small business owners, bankers and credit card companies say the only way to decrease the risk in their portfolios is to make some changes with their small business accounts. As a result, nearly three-quarters of small businesses have seen a large cut in their credit limits over the last six months.

Now that access to both bank loans and credit cards is hard to come by, where can the nation’s 27 million small business owners turn for funding?

Enter factoring…

Now more than ever, entrepreneurs across the nation are in desperate need of a factoring company that understands the intricacies of today’s funding marketplace.

If you think about it, the process of factoring receivables is very similar to using a credit card. For example, many small business owners use a credit card to purchase additional inventory and then pay down that bill as their customers pay them. With factoring, a business owner could just as easily sell his/her invoices to an invoice factoring firm and receive cash immediately on those invoices. In turn, they can use the cash to purchase additional inventory. In both instances, the business owner has readily available cash to purchase more supplies. In fact, the two funding mechanisms sound almost exactly the same.

However, there is one very important difference. When credit card companies and banks define a credit line and interest rate for a small business credit card, it’s based on the financial strength of the small business or its owner. During an economic recession, credit card companies view the normal ups and downs of a struggling small business as too risky.

However, with factoring, the credit decision is not based on the business’ credit at all. Rather, the lending decision is based on the creditworthiness of the company’s customers. Keep in mind that small businesses routinely sell to larger, more established companies. Because these companies are financially sound, they have the ability to continue paying their vendors, even during an economic decline. So in other words, when business owners use factoring, they can literally leverage the creditworthiness of their customers, which leads to lower fees and higher credit limits.

Now as I previously stated, there are 27 million small business owners in America right now who could be looking for another form of invoice funding because of the current state of the economy. Factoring is the perfect funding solution for those entrepreneurs who are unable to qualify for a traditional line of credit or are having difficulty negotiating reasonable rates on a small business credit card.

Philip Cohen is the founder and president of PRN Funding, LLC, which is an extraordinarily focused niche player in the healthcare factoring market place. Through a process known as factoring, PRN Funding provides financial resources for suppliers of services and products to healthcare institutions that are needed to grow and effectively compete in the industry. With no minimums or fixed terms, PRN Funding (http://www.prnfunding.com) provides medical business owners with flexible and immediate access to capital.

Article reprinted with permission by PRN Funding, LLC.

3 Ways Invoice Financing Can Help Your Business

Factoring Benefit #1 – Take On The Slow Payers

What?!? Purposely take on accounts that have slow payers? That is right…

Everyone who deals in any significant volume has a couple of accounts that just kill the cash flow. It is not that there isn’t plenty of profit; it just takes the customer forever to pay.

The problem is that these accounts can often be your BIGGEST accounts. Or, if you are like many other small businesses, you may have passed on a large order because you knew the client simply pays too slowly.

With factoring, you can afford to wait for the slower paying companies by taking an advance on the invoice and increasing your sales volume.

Factoring Benefit #2 – Pay Your Suppliers Early

Hey, everyone has a cash flow issue – some worse than others. But not one of your suppliers would mind getting paid a bit sooner.

The best part is, that paying your suppliers on time will enhance your company’s reputation and all the while, your bank account.

Most suppliers offer an “early pay” discount. If you are factoring invoices, you will have a stable cash flow allowing you take finally take advantage of these lucrative discounts.

Factoring Benefit #3 – Avoid Bad Deals

One of the best parts about working with a factor company is their ability to help you “pre-screen” potential clients.

Not only will your factoring agent tell you whether the new account is a good risk when it comes time to factor invoices, they can also help you avoid the bad companies altogether. In turn, losing less on bad or unpaid invoices will go a long way to your bottom line.

No matter what your reason, Factoring account receivables is certainly worth checking out when debating between lines of credit or simply selling invoices.

What do you look for in a good factoring program? Check out this list for comparing factoring companies.