Factoring

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 term that applies to a number of products that allow you to finance accounts receivable. The two most used solutions are factoring and asset-based financing. In this article, we discuss both solutions in detail. Quick Summary Factoring allows your company to sell its invoices to a finance company. The factoring company […]

Spot Factoring vs. Selective Factoring

Companies are often attracted to the idea of spot factoring because, on the surface, it looks like a simple solution. You finance a single invoice, or perhaps a couple invoices, and then conclude the relationship. However, financing a single invoice can have some drawbacks. Often, spot factoring is not the solution you actually need. From this […]

Inventory Financing vs. Accounts Receivable Factoring

Inventory financing is usually offered in combination with an invoice factoring line. Combining both products allows companies to leverage their assets and further enhance their cash flow. In this article you will learn: What is inventory financing? What is invoice factoring? How do these solutions work together Differences What is inventory financing? Inventory financing is a […]

Using Invoice Factoring to Finance Startups

One of the main challenges for startup founders is securing financing for their businesses. For many, it’s an ongoing challenge that is part of their fight for survival. Unfortunately, most startups don’t get funding. Instead, the founders and employees must bootstrap the business and make the best of their resources – and ingenuity. Looking for financing in […]

Invoice Factoring Examples

This article offers two examples of how invoice factoring transactions work. It helps you understand how the account is funded, how fees are charged, and how the transaction is settled. For a detailed explanation of the whole process, from account set up all the way to funding, read “How Does Invoice Factoring Work?” What is invoice factoring? Invoice factoring […]