Factoring Invoices: Pros and Cons

Factoring invoices has been gaining popularity as a way to finance companies that have cash flow problems due to slow-paying commercial clients. Factoring works by providing an advance on these invoices. This advance provides cash flow to operate the business and grow. To learn more details about factoring, read “What is invoice factoring?” You can […]

Government Contract Receivables Factoring

Getting a contract from the US federal government has a number of advantages. The government can provide you with a steady stream of work – if you know how to find it and bid for it. And, when used strategically, government contracts can help your business grow to the next level. However, government contracts can also […]

Supplier Financing For Companies That Sell To Retailers

Getting a contract from a large retailer can be very exciting for any business owner. It can certainly be a defining moment in your career – if you are prepared for it. But large contracts can also be a double edge sword that can hurt a business that is not well prepared. They can tie […]

Financing Options for Walmart Suppliers

For many business owners, becoming a Walmart supplier can be a defining moment in their business careers. Walmart’s massive scale, when approached correctly and strategically, can help your business grow exponentially. The bottom line is that Walmart is a great company with stores in the US and Canada (among other countries) and can make for a great client. […]

What is an Asset-Based Financing Line of Credit?

Asset-based financing is a catch-all term for a type of financing that allows you to finance corporate assets such as receivables, inventory, and equipment. When financing accounts receivable, the asset-based financing solution works a lot like a conventional business line of credit. On the other hand, when you are financing inventory and equipment, the solution operates like […]

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. […]

LBO Case Study – Small Transportation Company (Business Acquisition)

In this article, we present the case study of a leveraged buyout (LBO) applied to a small transportation company. Although this strategy is not mentioned in the popular press often, LBOs can be an effective way to buy a small business as well. Since the company is private (rather than publicly listed), all the names […]

Business Acquisition Loan – Down Payment Sources

Most business acquisition loan providers require that buyers of a business provide a down payment in order to get a loan. The down payment can range from 10% to 30% of the transaction value. In this article, we discuss why lenders require a down payment and describe four sources of down payment funds. For more […]