There's no secret banks are putting the squeeze on business lending and credit lines. In fact 55% of small to midsize businesses surveyed by the National Small Business Association reported difficulty in obtaining credit last year. And that was in early 2008 before the credit crunch really hit. So where can business owners turn for working capital as banks say no to business financing? Here are three places to consider during the 2009 credit crunch: … [Read more...]
Archives for 2009
What is Freight Bill Factoring?
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There are many businesses that outlay cash in advance of getting paid. One of the most cash flow strapped businesses is the trucking industry. Even though freight companies usually operate with significant profit margins, they have a substantial amount of cash outlay to deliver goods. Expenses include truck repairs, fuel, and even rentals; and no amount of profit helps when you are still waiting to get paid. … [Read more...]
How to Select the Right Factor
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Ok, you are sold on selling some invoices, you see the benefits, but you are just not sure how to select the right factoring company. Here are 7 essential factors to consider and compare: … [Read more...]
Using a Factor’s Credit Risk Expertise
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You probably already know about the ability to sell invoices to a Factor. You may also know you don't have to Factor all your invoices - just the ones you want or need. But did you know a Factor could provide tremendous help on invoices that you don't even factor? … [Read more...]
Factor Marketing – Perfecting the Elevator Speech
Quick! Tell me what you do in two to three sentences. The elevator speech is a cornerstone marketing component for developing accounts receivable factoring clients. Like with most businesses, the elevator speech is a brief commercial describing your services that can be used when contacting customers in person or by phone. Here are five key elements of any successful elevator speech: Personal and Business Name Services Offered Who benefits What's In It For Them (WIFT) Duration of 30 seconds or less This introduction assumes there is a limited amount of time, like an elevator ride, to describe what you can offer. When putting the components together, a factoring consultant elevator speech might sound like the following … [Read more...]
Earn Consultant Fees Factoring Invoices with Millennium Funding!
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Factoring account receivables is helping businesses through these tough economic conditions opening the door to earning opportunities for cash flow consultants. FactoringInvestor (FI) caught up with Michael Ponomarew (MP) from Millennium Funding to fill us in on how they are helping consultants earn fees by helping businesses sell invoices. … [Read more...]
What is Non-Notification Factoring?
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When a factor makes an advance to a business on invoices or accounts receivable they want to be certain payment is received from the account debtor. Whether or not the account debtor is notified of the assignment differentiates between notification factoring and non-notification factoring. With Notification Factoring the account debtors are notified the invoices were purchased and are requested to make payment directly to the factoring company. In the case of Non-Notification Factoring the account debtors are not notified the business sold and assigned the receivables. Also known as confidential factoring, the invoices are generally paid to a lock-box. Factoring is primarily handled on a notification basis. In fact about 82% of … [Read more...]
Bibby Financial Services Funds $1.25 Million
TORONTO, Mar 05, 2009 (BUSINESS WIRE) -- Bibby Financial Services recently provided a $1.25 million funding facility to an Ontario-based transportation company. The funds were used to pay out the company's loan facility with a major Canadian chartered bank and provide it with working capital after the bank had placed it into a special loans unit due to the company's losses. Bibby Financial Services was able to work with those bankers to complete the transaction and provide the client with the cash it needed to continue to operate, meet its obligations and manage its growth. "It is important now more than ever that Canadian businesses receive the financial resources they need to continue to grow," said Kevin Westfall, VP Operations, Bibby … [Read more...]
Managing the Factoring Advance Rate
Many companies struggle over how to manage their factoring advance rate when in reality it is pretty basic. Let's say that you begin factoring in January. If you factor $100,000 in accounts receivable … [Read more...]
Overcoming Cost Objections to Factoring
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We recently received this query from a factoring investor subscriber: "In the past, prospective clients complained about factoring costs being very expensive. How do we overcome this objection?" There are several ways to address the cost question as explained here by Mike Ponomarew. … [Read more...]