Generally, companies don’t use purchase order financing as a stand-alone product. Instead, they combine it with another financing solution, such as factoring. The reason both products are used together is that combining them often reduces total transaction costs. These savings benefit the client and drop directly to the bottom line. The purchase order financing line is used to pay […]
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How is a Subordination Used in Invoice Factoring?
Summary: In most cases, setting up a factoring account is relatively simple. Once the factoring contracts are signed, the factor files a UCC lien to secure its position against the accounts receivable, sends notices of assignment, and starts funding the account. Usually, this process is done fairly quickly. Having an existing UCC lien claiming your accounts receivable as […]
How to Select the Best Asset Based Lending Company
Selecting the right asset based financing company is one of the most important decisions you can make for your business. Your evaluation process must be designed to ensure you choose the best asset based lender to fit your tactical and strategic financing needs. This article describes a short process to help you evaluate potential lenders. If you are not […]
47 Best Free Load Boards for Truckers
Many new truckers start their businesses by looking for loads on line. Load boards have advantages because they let you find loads quickly and effectively. It’s an easy way to get the business rolling. Since new truckers often have tight budgets, using a free service is a good way to get some loads and save some money. Most of […]
Eight Advantages of Asset-Based Loans (ABLs)
Asset-based loans (ABLs) are used by small and middle-market businesses to improve liquidity and finance new projects. They offer similar advantages to conventional solutions. However, they are more flexible and have simpler qualification requirements. This article discusses the eight important benefits of asset-based loans. To learn more about asset-based loans, read “What is Asset-Based Lending?“ […]
Invoice Verifications in Asset Based Loans
Asset based lenders may perform invoice verifications as part of managing the borrowing base of a client. Invoice verifications allow the lender to confirm that the invoices used for the borrowing base are accurate and free of disputes. Clients are often concerned about the verification process because the asset based lending company interacts directly with their customers. […]
What Is an Asset-Based Loan (ABL)? How Does it Work?
Summary: An asset-based loan (ABL) is a type of business financing secured by a company’s assets. This financing improves liquidity and can be used to cover expenses or to invest in company growth. Asset-based loans can be structured as a term loan, revolving line, or a combination of both. The loan structure depends on the […]
Asset-Based Loans vs. Factoring
Summary: Factoring and asset-based loans are types of asset-based financing. Factoring finances Accounts Receivable only and is intended for smaller companies. On the other hand, asset-based loans enable you to finance several types of assets and are better suited for larger companies. While these products have some similarities, they are very different. This article provides […]
What is a Factoring Company?
Summary: Factoring companies provide financing to businesses that have cash flow problems. They specialize in financing accounts receivable, which improves the client’s cash flow. Smaller factoring companies typically provide invoice factoring as their only service. However, larger providers typically offer additional products, such as ledgered lines of credit, supply chain financing, and asset-based loans. This […]
How to Finance an Office Cleaning Business
This article covers how to finance a new or growing office cleaning company. It is divided into two sections. The first section discusses resources you can use to finance a new business. The second section covers how to fund operations as your business grows. 1. Financing a new business Financing a new commercial cleaning business […]