The most popular form of invoice financing is “non-recourse” factoring, accounting for roughly 85% of all factoring transactions. Just like the name implies, the client is not financially obligated to the factoring company in the event an approved and funded invoice is not paid. … [Read more...]
What is Recourse Factoring?
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When looking for a Factoring company it is helpful to understand if their funding methods are “recourse” or “non-recourse” factoring. With recourse factoring the company selling the invoices (the client) is basically guaranteeing the invoice will be paid in full. … [Read more...]
Transportation Factoring
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You may have heard ads on the radio offering Truck Factoring or Freight Bill Factoring. It's easy to think it has something to do with financing the truck itself, but in reality it is surprisingly similar to traditional invoice factoring. … [Read more...]
Factoring Companies USA
Choosing a quality company that buys invoices can be as challenging as trying to guess the number of marbles in a large jar. It can also be tough to separate the good from the bad – this is the very reason we created the Factoring Directory. … [Read more...]
Staffing Factoring Helps Oil Spill Cleanup Jobs
Thousands of workers hit the Gulf Coast beaches to help with the worst oil spill disaster in history. Temporary workers fill many oil spill cleanup jobs, creating a surge of business for staffing companies. As a staffing company hires, trains, and pays workers they create invoices in need of payment. That can mean more cash going out than coming in, creating a cash flow crunch during a credit crisis. … [Read more...]
Accounts Receivable Factoring – An Alternative Funding Option For Small Businesses
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Because of their lack of financial sophistication and size, today's small businesses continue to face the hardships brought on by current economic challenges. Many firms struggle to maintain their bank credit facilities, and securing a new line of credit or increasing a company's current limit is nearly impossible. So if the lending wells have dried up, what's a small business owner to do? Capitalize on the benefits of accounts receivables factoring. … [Read more...]
Using a Factoring Company
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...]
Freedom From Factoring Fees
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In an effort to combat the affects of the crumbling economy, service-oriented businesses have been getting creative with new ways to generate money. Unfortunately for consumers, that creativity often translates into price hikes, additional fees, reduced services or cut backs on productivity. But does it have to be that way? … [Read more...]
Top 5 Factoring Articles for 2009
The results are in and our readers have spoken! Here are the 5 most read factoring articles for 2009. Make sure to review these timely topics as you make plans for your accounts receivable financing business in 2010. … [Read more...]
Factoring FAQs
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Ok, you are considering factoring and you are busy. You are not looking to read volumes of factoring manuals or sit through a weekend seminar. You just want the 60 second big picture overview. Well, this article is for you! … [Read more...]