Factoring is one of the oldest known business practices that date as far back as the Ancient Roman Empire when merchants would enlist the help of collectors to settle trade debts. The Definition of Invoice Factoring Factoring is generally defined as an arrangement whereby a factor purchases an account(s) receivable from a business at a discount to the face value of that receivable. The factor earns a fee based on the number of days that receivable remains unpaid. Effectively the business is no longer dependent on the conversion of the accounts receivable to cash from the actual payment from their customers which takes place on typical 30 to 90 day terms. Today, factoring is used more than all other types of business financing combined. … [Read more...]
How I Run My One Person Factoring Business
Have you wondered what it takes to run a small factoring operation by yourself or with just a family member? What do you need for day-to-day operations in terms of equipment, technology, documentation, and know-how? Factoring receivables can be a lucrative business with high returns, but you need to know how to manage the business with minimal overhead. Overseeing employees adds significant additional costs and responsibilities. This informative ebook is written in the first-person by Jeff Callender, a well-respected small ticket factor who has been in the business since the mid-90s. Jeff shows simply and clearly how he has run his company year after year with no employees. Discover how his use of current technology, … [Read more...]
Factoring News: Two New Slow Paying Customers
Your biggest and best customers might just now be your slow paying customers. This disturbing trend in accounts receivable financing is affecting both business owners and factoring companies. Here's an enlightening update: … [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...]
What’s the Difference Between Factoring and Asset Based Lending?
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...]
What is Spot Factoring?
Need a quick one-time infusion of cash for your company? Spot factoring just might be the answer. This business financing solution enables a company to receive an advance on a single outstanding invoice. … [Read more...]
Small Factor Series – 6 Essential eBooks for Factors and Consultants
The Small Factor Series is a powerful how-to system for anyone wanting to make money with small invoice factoring and accounts receivable financing. This complete package contains the following 6 eBooks available for instant download. Factoring Fundamentals How You Can Make Large Returns in Small Receivables Are you seeking dependable income with the hours you choose from any location you want? This introductory volume in The Small Factor Series, shows how you can make middle to high double digit annualized returns no matter how much you invest! Gain access to all the information a newcomer to factoring needs to know when starting out in this remarkable investment. Read More... Factoring Small Receivables How To Make Money in Little … [Read more...]
Recourse and Non-recourse Factoring
The big difference between recourse factoring versus non-recourse factoring is the party at risk for bad debt. Understanding this important distinction will help a business select the right financing terms when factoring invoices and accounts receivable. … [Read more...]
What Industries Use Factoring for Business Financing?
Any company generating accounts receivable with creditworthy customers can take advantage of the cash flow benefits offered through factoring. In factoring, like any industry, there are certain clients that make up the greater share of business. … [Read more...]
Working Capital During the Credit Crunch
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...]