Factoring is a form of financing that allows you to finance your slow-paying invoices. It improves your company’s financial position, providing the funds it needs to operate and grow. Learn more by reading “What is freight bill factoring?” This article highlights the advantages of freight bill factoring. It helps you determine if it is the […]
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Advantages and Disadvantages of Purchase Order Financing
In recent years, purchase order (PO) financing has been gaining popularity as a tool to finance companies that have been awarded a large purchase order. In this article, we discuss: 1. What is purchase order financing? Purchase order financing helps distributors and resellers that need funds to fulfill large purchase orders. The solution helps pay […]
How to Deal with Slow-Paying Customers
Dealing with slow-paying customers can be a major headache for business owners. This is a bigger challenge for small companies that don’t have employees dedicated to collections. Ultimately, slow-paying customers affect your cash flow and distract you from running the business. Improving your invoicing and collections is not difficult, but it takes some discipline. The […]
How Does Purchase Order Financing Work?
Summary: Purchase order (PO) financing helps small businesses that have a large order and need funds to pay their vendors. It helps cover your supplier expense, enabling you to fulfill the order and book the revenue. While this solution is flexible, it works only with specific transactions. This article explains how PO financing works, who […]
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 […]
4 Factoring Application Mistakes to Avoid
Four common application mistakes can lead to a funding delay or a rejection of your factoring application. This article provides suggestions to avoid these mistakes and improve your chances of getting funding. Lastly, we provide a strategy to handle transactions in which the company (or owner) has negative information. Mistake #1 – Hard-to-read applications Submitting […]
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 […]
How to Get the Best Factoring Rates
Most companies looking for factoring try to get the best rate by sending applications to as many factors as possible. While this approach can work, having many open applications is hard to manage. Ultimately, the process is time-consuming and doesn’t always work. Fortunately, there is a better way to get the best factoring rates. It […]
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 […]