This article explains how to calculate the factoring fees of a factoring proposal. It covers the three most common proposal fee types: flat-rate, variable-rate, and discount-plus-margin. We cover the following: How does factoring work? Typical rates and advances How to calculate factoring fees Additional fees Rates vs “Cost per dollar” 1. How does factoring work? […]
Factoring
How to Evaluate Factoring Companies
The decision to use factoring to improve the cash flow of your company is not easy and should be done carefully. The success of your business depends on making the right choice and partnering with the right company. In this article, we discuss how to evaluate factoring companies effectively. The process is simple to use […]
Typical Factoring Rates
In this article, we discuss factoring rates and how to use rates to determine the total cost of using this solution. From this article, you will learn: Typical factoring rates Tiered vs. flat rates How factoring companies determine your rate Why rate is not the same as cost If you are not familiar with factoring, […]
Do You Qualify For Invoice Factoring?
Factoring plans can provide many of the 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. Note: To learn more about factoring, read […]
Invoice Factoring with No Minimums
Factoring plans often include minimum financing requirements. Committing to a minimum funding volume can help you get better factoring rates. However, it can also hurt your company if your minimums are not managed correctly. Most small and growing companies should consider factoring plans with no minimums, at least initially. From this article, you will learn: […]
What is Invoice Financing? How Does it Work?
Invoice financing is a general term that applies to several products that allow you to finance accounts receivable. The two most-used solutions are factoring and sales ledger financing. In this article, we discuss both solutions in detail. The article covers: Quick summary What is factoring? What is sales ledger financing? Which solution is right for […]
Inventory Financing vs. Accounts Receivable Factoring
Summary: Invoice factoring allows companies to improve cash flow by leveraging their accounts receivable. Inventory financing, on the other hand, enables companies to leverage the funds tied to their inventory. However, most small business owners misunderstand each solution’s role in their company. This misunderstanding often leads to expensive mistakes. Invoice factoring is more flexible and […]
Using Invoice Factoring to Finance Startups
Summary: Finding the right source of financing for a startup is one of the most challenging tasks for founders. Guided by what they see in the popular media, founders often think that the best way to finance a company is with venture financing, angel financing, or a business loan. This is not the case. Few […]
Invoice Factoring Examples (With Complete Details)
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. The article covers the following subjects: What is invoice factoring? How does invoice factoring work? How much can a factor advance your company? How much […]
Asset Based Lending vs. Factoring
Factoring is a type of asset based financing that is often confused with asset based lending. While these products have some similarities, they are very different. This article helps you understand the differences between these products and helps you determine which one is best suited for your company. 1. What is asset based lending? An Asset […]