So, you decided to factor your invoices. You’ve discovered that factoring your invoices allows you to get funds immediately without the worry of acquiring debt. You’ve applied for accounts receivable factoring through a factoring company and you’ve been approved. Now that the hard part is over, what’s next? Many businesses aren’t sure what the next steps to take after being approved for invoice factoring and receiving cash. There are some smart ways to use the funds as a means to your cash flow problems and essential needs. 5 Steps to Take After Being Approved for Invoice Factoring 1. Assess the Needs of the Business It is important to assess what your company needs over what you want. The difference between wants and needs is … [Read more...]
Tax Deductibles and Factoring Fees
In the spirit of the season, it’s time to file your taxes. Your tax returns verify your previous income level and are proof of the tax obligations you have fulfilled – both filing and payment. It is recommended to turn to a creditable tax agent to ensure everything is done correctly. For better understanding of your invoice factoring terms of agreement, reach out to your factoring company. There is a lot to be determined when determining if the receivables you factored are taxable. How a company treats its accounts receivable depends on what accounting method the company takes. If it uses the accrual method, then the company records revenue as soon as it makes a sale, which means accounts receivable get counted as income. The general … [Read more...]
5 Tips for a Successful Freight Broker Social Media Strategy
Having a strong social media presence is no longer an option for freight brokers; it is a need. Social media for B2B has become an essential method of marketing. It has its leverage in every industry you can think of. While the common B2B marketing tactics include email and website marketing, the power of social media should not be forgotten. It is a missed opportunity when B2B companies don’t take advantage of the perks that comes with social media. It’s a great way to get information out fast to your target audiences. With the proper digital marketing strategies, your business can assist prospects in researching purchase decisions, improve search engine optimization (SEO), generate leads and drive business. Social media platforms … [Read more...]
Is This The Golden Age of Invoice Factoring?
It’s usually during this time of year where you will find a bunch of business articles that reflect upon the events of the past year or take a stab at making predictions for the next earnings period whether it be quarterly or annually. Instead of following suit and subjecting you to the same old topic I would rather take a look at... The present state of the factoring industry. When you hear the term “Golden Age” of something it typically represents a period of great peace, prosperity and happiness. Usually we think of periods of history in Greek and Roman mythology when civilizations thrived in the arts, literature and science. Obviously it sounds like a stretch to associate invoice factoring with the historic cultural periods of the … [Read more...]
Relationships Matter to Success in the Factoring Industry
The famous French philosopher Voltaire once said, “The ladder of success must be set upon something solid before you can start to climb”. You can interpret this quote in a variety of ways and for me it really hits home when I look at our success in the factoring industry. We’ll get to that in a moment. The first question that always comes to mind when talking about success is how do you measure it? Talk to most folks and the answer is usually associated with the bottom line. Anyone that follows the financial markets knows what happens to a company’s stock price when they either beat or miss analysts’ expectations for a given period. Let’s face it, without profits companies cannot sustain their operations and continue to be a going … [Read more...]
Social Media: Worth the Time for Factors?
Factors and brokers know that time is everything when it comes to factoring. In order to find and close deals, connecting and following up with a lead quickly is essential. Marketing is an important part of growing any business. That’s why factoring companies often devote a substantial amount of time to marketing, advertising and branding efforts. Social Buzz Social media seems to be the new hot thing when it comes to online marketing—after all, there is a huge audience available, it’s targeted, and it is about as cheap as it gets. Current marketing research from HubSpot shows that social media produces double the leads of trade shows or pay-per-click advertising. Also, companies that generate over 1,000 Facebook likes are also likely to … [Read more...]
Asking the Right Factoring Questions
Everybody has an opinion as to how factoring works and the best method to fund deals. Many of the articles I’ve written in the past try to assist the broker and factor from both the sales and operational side of the equation. Is there a magic formula to use to get more deals closed? We all know there is no secret that will land you more deals, but positioning yourself, asking the right questions and using common sense will sure go a long way. Unlike a traditional bank loan which requires collateral as security, factoring typically involves advancing funds through the purchase of an invoice. The invoice is an instrument that represents a promise from one party to pay another for delivered goods or services. No risk at all associated … [Read more...]
Funding for Long-Term Care Facilities
Factoring is a good option for nursing homes, and yet finding the right medical factoring company is often a challenge. A look at the problems and solutions in this article from PRN Funding. “A test of a people is how it behaves toward the old…the affection and care for the old, the incurable, the helpless are the true gold mines of a culture.” -Abraham J. Heschel As birth rates decline in developed countries and the population ages, we must consider how we are going to treat the elderly among us. According to the US Centers for Medicare and Medicaid Services, over 12 million people will need long-term care by 2020; that comes out to about four out of every ten elderly adults entering a nursing home at some point in their lives. At … [Read more...]
Purchase Order Funding And Factoring Offer Full Service Financing
Discover how Purchase Order Funding and Factoring can provide full service financing for your clients. How often has it occurred that you have prospected for factoring clients, and when it came time to qualify your lead, they really needed a finance product that provided funds before the creation of an invoice? We know first hand that such situations are very common. We’ve even had the situation where we sent out a proposal and the applicant replied that they needed up front funding, not invoice factoring, even though we fully explained at the start that we did factoring. It was soon after that event when I realized that factoring and purchase order (PO) funding are closely related and the two products can offer referral sources … [Read more...]
Sequestration and Business: What Factors Need to Know
Start planning now for the effects of sequestration on factoring and your business. As far as sequestration goes, it feels a little like waiting for the other shoe to drop. Due to the failure of the government to come to a workable agreement on spending reduction, automatic across-the-board cuts were implemented on March 1st. Many government programs and jobs will be impacted, as well as the businesses that work directly and indirectly with them. While exemptions from the cuts do exist, sequestration will have far reaching implications for industries like healthcare as well as … [Read more...]