Is Invoice Factoring Right for All Businesses?

So many authors, including myself, have written about the benefits of invoice factoring explaining how we help businesses in need of working capital. Just type something like, “benefits of invoice factoring” into your favorite search engine and you will find pages of articles telling you how factoring works and why it is the best solution for your business. As the owner of a factoring company I can definitely say that factoring is an extremely useful tool to help businesses grow by unlocking cash in the form of an account receivable. But is factoring a one fit all tool for all businesses to achieve growth? As a featured speaker and panelist at small business workshops over the last several years, I’m fortunate to be given the … [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...]

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...]

Considering Accounts Receivable Financing? 5 Things to Know Before Applying for Factoring

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...]