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 Its Receivables?

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 […]

What is a Line of Credit Secured by Accounts Receivable?

Having cash flow problems is a common challenge for companies of all sizes. Fortunately, many cash flow problems can be solved by improving operations, using financing, or combining both options. This article focuses on how to get financing by using your Accounts Receivable (A/R) as collateral. We cover three financial options that use your A/R: […]

The Best Way to Collect Unpaid Invoices

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 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 that work with commercial clients often have to wait 30 to 60 days before getting paid. This practice is known as offering “net terms” and is common in commercial and government sales, where clients often demand terms as a condition of awarding a contract. Offering terms creates a dilemma for companies that don’t have […]

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?

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: Factoring basics What is the client […]

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 […]