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...]
Are There Too Many Factoring Companies?
Over the last several years it seems that competition among factoring companies has increased dramatically. The supply and demand between invoice factoring companies and qualified prospects has tipped to the point where too many funders are chasing too few deals. Just look around at some of the social media boards where a broker posts a potential lead and ten different factoring companies respond to it. Economics 101 teaches us that a perfectly competitive market structure is one where there are many buyers and sellers, homogeneous products and relatively free entry and exit in the marketplace. I will be the first to go on record to say that I believe that competition is the cornerstone of our economy which makes us the great … [Read more...]
Factoring For the Tortoise and the Hare
How often have you heard the catch phrases, “Same day funding”, or “Invoices funded in 24 hours or less”? Whether you work in the factoring industry as a direct funder or consultant, we all know that quality customer service is a cornerstone for any company’s long term success. Lately however, it seems that customer service is measured more on speed than any other factor. … [Read more...]
How to Factor Invoices on Small Margins
You probably have heard the many benefits of factoring receivables but may have thought it's only viable for those companies with large profit margins. Well, you might be surprised to know that many companies with small profit margins are benefiting from factoring also. For example let us say that you are only making a 3% profit on your product and the factoring fee is also 3%. … [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...]
Back By Popular Demand – Factoring Webinar!
You asked for it and we got it! We have received a number of requests to rebroadcast the Attraction Marketing Webinar presented by Michael Ponomarew last month. … [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...]
Discover the New Rules and Tools for Success in Today’s Economy
***Attraction Marketing Webinar*** Whether you are new to the Industry or a Seasoned Cash Flow Professional this may be one of the most important presentations you may ever watch in this Industry! Success in this Industry boils down to “2” Things 1. Your Ability to Market Your Services 2. Your Ability to Respond to Your Prospects … [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...]