Lending to small business was down a whopping 12.5 billion or 4.6% for the 7 months ending in November. That sobering news comes from the Treasury Department's tracking of the 22 largest banks receiving bailout money. Of course these stats are no surprise to business owners. Rebuffed by banks, they increasingly turn to factoring and purchase order financing for cash flow needs. The New York Times recently … [Read more...]
Factoring Demand Increases as Big Business Takes Longer to Pay
Dealing with cash flow strain in a struggling economy, big business is taking longer to pay on invoices. The average time to pay bills is up 5% to 55.8 days for companies with sales over $5 billion, as reported by the Wall Street Journal in Big Firms Are Quick to Collect, Slow to Pay. … [Read more...]
Considering Accounts Receivable Financing? 5 Things to Know Before Applying for Factoring
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Factoring provides cash to companies all across America, even when banks say no to business loans. Like all business deals, it pays to be prepared. Save time and money by understanding these 5 areas before … [Read more...]
Attention Business Owners! Stop Being a Part-Time Banker for Your Customers
How many customers take longer than 30 days to pay on their invoices? Congratulations! Your business has just extended credit to your customers. You may not have thought about it this way, but you are now in the banking business. Even worse, you probably have the best rates in town. … [Read more...]
Five Strategies to Reduce Factoring Costs
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When a business is strapped for cash they often turn to factoring accounts receivable as a financing solution. Of course a factoring company expects to earn a profit on the cash advance and charges a fee for their service. Since the overall goal is improved cash flow, a company considering accounts receivable financing will carefully weigh the benefits against the costs. Here are five ways a business can reduce or offset the cost of factoring and still improve cash flow: … [Read more...]
Factors and Asset Based Lenders Fill Bank Financing Void
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The results are in and the numbers show what many of us were already seeing, factoring and asset based lending are on the increase. Amazingly, factoring has experienced continued growth for the past 33 years in every year except 2001. Just take a quick look at these highlights … [Read more...]
What’s the Difference Between Factoring and Asset Based Lending?
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Companies in need of creative working capital solutions often consider both Asset Based Lending and Factoring. This leaves many businesses to wonder, "What's the difference? Is it really apples and oranges?" … [Read more...]
An Alternative to Factoring
How can a business turn their account receivables to cash when they want to avoid factoring? Here is an alternative solution to consider when a company does not want to discount invoices or doesn't qualify for factoring. … [Read more...]
Investor Spotlight: It’s Not Just Construction Factoring with Quantum Corporate 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 Howard Chernin (HC) to fill us in on the accounts receivable funding business. … [Read more...]
When Should a Business Use Factoring?
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Need to meet payroll? Are suppliers demanding payment? Has the bank reduced or pulled your credit line? These are just a few of the challenges facing businesses in today's economy. In fact over one third of banks surveyed by the Federal Reserve in April 2009 have reported a decline in credit line and credit card limits for businesses. … [Read more...]