Receivables Finance

What is Accounts Receivable Factoring?

The short answer: accounts receivable factoring is a form of business funding. It allows companies to finance their accounts receivable from slow-paying customers. Other common names for this product are factoring and invoice factoring. Do you provide net-30 terms to clients? Most commercial sales of products and services happen on credit terms. This arrangement gives […]

Why Would a Company Sell Their Receivables?

A company would sell their receivables for a simple reason: to improve their cash flow. Having good cash flow is essential if you want to run a successful business. You can have a great product/service and excellent profit margins, but if your cash flow is bad your business will suffer. As a matter of fact, many […]

What is a Line of Credit Secured by Accounts Receivable?

Having cash flow problems is a common challenge for small and growing companies. These problems can often be solved by improving operations while using the right financing solution. One way to improve your cash flow is to get financing secured by your accounts receivable (A/R). Your A/R can be used as collateral for a number of solutions such […]

The Best Way to Collect Unpaid Invoices

Collecting unpaid invoices is probably one of the most tedious tasks of running a business. Most small and midsize companies handle collections somewhat reluctantly. Everyone hates to do it. Therefore, it’s a task that is done after everything else is done, or if you need money urgently. This mistake is costly. Collections should be seen as the […]

How to Finance Accounts Receivable and Inventory

Companies that want to finance receivables do so because they can’t afford to wait up to 60 days to get paid by their clients. Financing their receivables allows them to improve cash flow relatively quickly. However, companies that look for inventory financing may be trying to solve two very different problems. On one hand, there […]

How Does Accounts Receivable Financing Work?

Companies often work with commercial clients who pay their invoices in 30 to 60 days. Giving clients net-30 terms is common for many companies. Unfortunately, some companies don’t have the cash reserves to wait that long for payment. They need to get paid sooner so that they can pay for their own expenses. Accounts receivable financing helps […]

Selling Accounts Receivable to Obtain Short-Term Funds

One of the challenges of having to offer net-30 to net-90 terms to commercial clients is that it can affect your cash flow. Problems often occur if your company has low reserves or if you just made a very large sale. Although large sales can be good, they affect cash flow because you have to incur all […]

Selling Accounts Receivable to Finance Your Business

Most companies that sell products and services to commercial clients have to offer net-30 payment terms. These terms give clients up to 30 days to pay an invoice. Unfortunately, you don’t have a choice in the matter. Most large companies demand payment terms as a condition of doing business. Providing terms can create financial problems if your company cannot […]

How Do Factoring Companies Buy Accounts Receivable?

Many prospective factoring clients are surprised by the fact that invoices – or accounts receivable – can be sold to a finance company. This reaction is understandable, since an invoice is not a physical good, per se. It’s hard to imagine how a factor could buy it. This article explains how a factoring company purchases […]

How To Finance Foreign Receivables

Offering payment terms to foreign clients for your export sales can be a challenge. While many export transactions can be done safely using a letter of credit, large foreign companies often demand payment terms. In a conventional credit sale, the US supplier delivers the product or service to the foreign client and then waits up to 60 […]