Factoring

How to Finance a US Subsidiary (A/R Financing)

For overseas entrepreneurs, opening a foreign subsidiary of your company in the United States presents both a great challenge and a fantastic opportunity. The American market offers great potential for expansion and the opportunity to grow sales. However, you often need to make a large investment to open a foreign subsidiary. Obviously, you need funds […]

Supply Chain Financing vs. Invoice Factoring

Supply chain financing is a set of financing tools that allows a company to improve its cash flow. The most common tool in the supply chain financing tool set is reverse factoring. However, there are other tools such as supplier financing and purchase order financing. Invoice factoring, on the other hand, is a trade financing […]

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 […]

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. […]

Advantages and Disadvantages 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 […]