A Notice of Assignment (NOA) is a document that factoring companies send to the end-customers of their clients. This document informs end-customers of the factoring financing relationship. Clients usually have some concerns when they learn that a factor will notify their customers. This article addresses these concerns and explains how the NOA works, why it […]
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What to Do If Your Invoice Factoring Application Is Rejected
Having a finance company reject your application is always difficult. However, knowing how to handle the rejection effectively may help you get financing in the future. This article covers how to handle an application rejection constructively. It covers the most common reasons factoring applications get rejected and provides a strategy to move forward. 1. How […]
Financing a Directional Boring / Directional Drilling Company
Managing the cash flow of a directional boring/directional drilling company can be challenging. Like most companies in construction, they face a common cash flow dilemma. The company has to pay expenses quickly but must also wait up to 60 days to get paid by clients. This situation can leave directional boring companies with a cash […]
Can Invoice Factoring Help with Collections Problems?
Some business owners have the misconception that factoring companies can finance “troubled invoices.” Factoring improves your cash flow by financing slow-paying invoices. However, it won’t help with invoices that have collections problems. A factoring company will not finance those invoices. This article explains how factoring works, how factoring companies determine credit quality, and why they […]
What are Vendor Guarantees?
A vendor guarantee is a tool that can help some companies cover their supplier expenses. Companies that manufacture products but cannot obtain conventional financing commonly use vendor guarantees. This article explains how vendor guarantees work, who can use them, and the product’s limitations. We cover: 1. How to finance supplier costs Paying for supplier expenses […]
How do Purchase Order Financing Companies Prepay Foreign Suppliers? (Letter of Credit)
Most of our purchase order (PO) financing clients are importers who buy goods from another country and sell them to companies in the US or Canada. Some of these importers usually request that we prepay their supplier by wire transfer. While purchase order financing companies can pay foreign suppliers with a letter of credit, documentary collection, […]
Business Financing for Companies with Tax Problems
Summary: Running a company that is behind in taxes is very difficult. In most cases, the company has cash flow problems, is behind paying its suppliers, and is at risk of failing. Some companies with tax problems can be turned around with the right type of financing. However, getting funding will be very difficult. This […]
Emergency Cash Flow Financing
Many small businesses have a cash flow emergency at one point or another. Unfortunately, these emergencies can even happen to companies that are well prepared. This article shows you how to obtain financing if your company needs immediate emergency funding. It also explains how to prevent some emergencies. We cover: 1. What is causing your […]
Should You Use Factoring with Purchase Order Financing?
Summary: Purchase order (PO) financing companies often advise prospective clients to work jointly with a factoring company. Combining both products can reduce the total financing cost of a transaction and provide additional capital to the company. However, settling a transaction through a factoring line only benefits some transactions. This article explains how a purchase order […]
Is Invoice Factoring Right for Your Business?
Invoice factoring is a business financing solution popular with small and midsize companies. This article helps you determine if factoring is the right solution for your business. We guide you through eight questions to ask before considering a factoring facility. 1. Can my cash flow problem be fixed using factoring? The first question to ask […]