One of the most common challenges for companies that work with commercial clients is having to offer credit terms. This gives clients the option to pay an invoice 30 to 60 days after you have delivered your product or provided your services. Your company has to cover the expenses of fulfilling the contract and then wait – for up to two months – to get paid. Offering credit is expensive Most small companies have to offer credit even though they can’t afford it. Large companies demand it and you have to provide it if you want to earn their business. But providing credit has a cost, especially if your company has tight cash flows. At the very least, it will slow down your growth since you won’t be able to add new clients who may also demand … [Read more...]
Archives for March 2010
Is a Factoring Career Right for You?
Earning $50,000 - $250,000 per year? Full-Time, Part-Time, or even Spare Time! Today's Credit Crisis can be Your Opportunity for Wealth! To say times are tough would be … [Read more...]
Medical Coding Factoring Terms
When a medical coding service is considering selling their receivables to a factoring firm, it's important to familiarize themselves with some common factoring terminology. This is a quick reference guide outlining some of the more commonly-used factoring terms to help medical coding business owners navigate seamlessly throughout the entire factoring process. ACH (Automatic Clearing House) - One method factoring companies use to electronically transfer funds into an Account Creditor's account. When an ACH is initiated, the funds are made available electronically in the Account Creditor's account on the next business day. Account Creditor - You, the client and provider of medical coding services. Accounts Receivable - The money … [Read more...]