Companies sell their receivables 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 your business will suffer if your cash flow is bad. As a matter of fact, profitable companies can also have serious […]
Receivables Financing
What is a Line of Credit Secured by Accounts Receivable?
Summary: A line of credit secured by Accounts Receivable (A/R) is a type of financing that uses your invoices as collateral. It provides a revolving line that allows companies to draw up to 85% of their A/R. Several products can provide a line secured by invoices. Your product choice is determined by your company’s size, […]
The Best Way to Collect Unpaid Invoices
Summary: Collecting unpaid invoices is probably one of the most tedious tasks of running a business. However, it’s also the most important one. Getting paid on time is vital to the success of a company. It brings in the money to pay employees, suppliers, rent, and yourself. Consequently, it’s essential to handle collections well from […]
How to Finance Accounts Receivable and Inventory
Summary: Companies that finance their accounts receivables typically do so because they can’t afford to wait up to 60 days to get paid by their clients. Financing their receivables solves this problem and allows them to improve cash flow quickly. On the other hand, companies that look for inventory financing are trying to solve a […]
Selling Accounts Receivable to Obtain Short-Term Funds
Summary: Companies experience short-term cash flow problems every so often. It is a common business problem that can happen due to sudden growth, large clients paying slowly, or other reasons. The typical approach to solving this problem is to get a loan. However, loans and lines of credit aren’t always the best solution. Qualifying for […]
Selling Accounts Receivable to Finance Your Business
Companies experience cash flow problems at one point or another. These issues are common in small companies and in companies that are growing quickly. Cash flow problems can usually be fixed using the correct type of financing. However, getting a bank loan or a line of credit remains out of reach for many small and […]
How Do Factoring Companies Buy Accounts Receivable?
One of the advantages of invoice factoring is that most transactions are not structured as loans. Instead, the client sells their accounts receivable to the factoring company in exchange for an immediate payment. This article describes how a company sells their invoices to a factor and covers the following information: 1. Factoring basics Invoice factoring […]
Financing Your Business With Receivables Factoring
Companies that work with commercial and government clients face a common financial challenge. Their clients usually pay their invoices in 30 to 60 days. These slow payments often lead to cash flow problems. This article provides three tactics that you should use before considering financing. We cover: 1. Good clients with slow payments Working with […]
How to Improve Your Cash Flow by Factoring Receivables
Few things are more concerning to business owners than encountering cash flow problems. These problems impact all areas of the business, especially sales and operations. This situation often creates a financial “vicious-cycle” that is hard to reverse. In this article, we explain the most common cash flow problem that afflicts small businesses. More importantly, we […]