Factoring

Invoice Factoring vs. Business Line of Credit

It’s not unusual for small and midsize businesses to experience cash flow problems from time to time. As a matter of fact, many growing businesses encounter financial problems as a result of their fast growth. Often, the only way to improve cash flow and fix the problem is to use financing. Two common financing solutions that help improve […]

Advantages of Sales Ledger Financing

Sales ledger financing is gaining traction as a financing option for mid-sized companies that are in good financial shape and are growing quickly. This solution is offered to companies that have outgrown conventional invoice factoring but are not able to meet the qualification requirements of a line of credit. Sales ledger financing offers a number of advantages to businesses, […]

Invoice Factoring vs. Sales Ledger Financing

Every company that is growing and doing well eventually experiences cash flow problems. Actually, the most common cash flow problem happens because customers pay invoices in 30 to 60 days. Companies can afford to offer terms and wait for payment – at least initially. But if your company is growing quickly, it will eventually run low on cash. […]

Pros and Cons of Non Recourse Factoring

Non-recourse invoice factoring plans have quickly become very popular with companies that are looking for a factoring plan. The main advantage of non-recourse plans is that the factoring company absorbs the loss of advance, if your customer does not pay due to a credit reason. Factoring companies use different rules to define what is a qualifying ‘credit reason’. […]

How Much Does Factoring Cost?

This article helps you understand how much you can expect to pay for accounts receivable factoring services. It explains the components of the cost and how to calculate your cost per factored dollar. The article assumes that you already know how factoring works. If you are not familiar with factoring, here is more information. Understanding How Factoring Costs […]

How to Compare Factoring Companies

The decision to use factoring to improve your cash flow is important. But choosing the best factoring company can be difficult. The market is full of factoring companies that offer a confusing number of options. It can be hard to tell who will work best for you. However, the success of your business depends on […]

Typical Factoring Rates

The decision to use financing to improve your cash flow and grow your company is critical. The right solution can help improve your sales and put on the path to growth. However, choosing the wrong solution, or an alternative that is too expensive, could make things worse. From this article, you will learn: What things factors consider to […]

Invoice Factoring Requirements

Factoring plans can provide many of the financing benefits associated with a line of credit. However, they are much easier to qualify for than conventional financing. Most factoring companies have fairly simple requirements to qualify. The following is a list of the main requirements to qualify for invoice factoring. By the way, to learn more about factoring, read […]

Invoice Factoring with No Minimums

Factoring plans often include minimum financing requirements. Although committing to a minimum funding volume can help you get better factoring rates, it can also hurt your company if not managed correctly. As a matter of fact, many small and growing companies should consider factoring plans with no minimums, at least initially. From this article you will learn: What invoice […]

What is Invoice Financing? How Does it Work?

Invoice financing is a general term used for asset based lending products that allow companies to finance slow-paying accounts receivable. There are two ways to finance invoices. The first way is through a sale. Invoices can be sold to a factoring company in exchange for an immediate payment. The second way is using receivables to secure […]