Small business owners are often challenged when a large customer requests 30 to 90 days of credit to pay an invoice. As a business owner, you want to offer credit terms because it improves your ability to sell to large clients. However, offering credit terms can also hurt your company if you don’t have financial […]
Invoice Factoring
How to Choose the Best Factoring Company
Selecting a factoring company is one of the most important financial decisions that you will make for your business. This article explains everything you need to know so you can find and select the best factoring company for your business. We cover the following: 1. What is a factoring company? Factoring companies specialize in financing […]
Accounts Receivable Aging Reports and Factoring
The accounts receivable aging report is one of the most important reports that a factoring company asks for when processing your application. The factoring company uses this aging report to determine the size and quality of your invoice portfolio. It helps determine which terms – such as invoice factoring rates and factoring advances – will […]
How Does the Factoring Advance Affect Your Cost?
When business owners negotiate with factoring companies, they usually focus on negotiating the best factoring rate. However, owners often don’t consider that the factoring rate is not the same as the factoring cost – at least, not on a “per-dollar” basis. The factoring cost has two major components: the rate and the advance. Getting the […]
Recourse vs. Non-Recourse Factoring
There are two types of factoring financing, commonly known as recourse and non-recourse factoring. Some factoring companies specialize in one type of solution, though many companies offer both. In this article, we explain and compare both types of factoring. The article covers the following: 1. How does invoice factoring work? Before discussing the specifics of […]
How to Handle a Business Cash Shortage with Factoring
Summary: Most companies have a cash shortage at one time or another. Cash shortages often happen to companies that add customers quickly and outgrow its cash reserve. Cash shortages can lead to further problems if not fixed correctly. This article provides practical strategies to prevent cash shortages. It also explains how to handle a cash […]
How Can Factoring Companies Help You?
Summary: Invoice factoring, an alternative source of business funding, is a popular way to finance small companies. It solves four key problems: However, not every company can benefit from factoring because it only helps companies that have a specific cash flow problem. This article helps you determine if factoring is right for you and how […]