Summary: An asset-based line of credit is a specialized type of asset-based loan. It provides a revolving line of financing that must be secured by Accounts Receivable (A/R). Some lines can also finance Inventory as long as the A/R is included in the transaction. These lines are often used by small and mid-sized companies that […]
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Invoice Factoring vs. Business Line of Credit
It’s not unusual for small and midsize businesses to experience cash flow problems from time to time. As a matter of fact, many growing companies encounter financial problems due to their fast growth. The most effective way to solve their cash flow problems is to use financing. The two most common financing solutions that help […]
Advantages of Sales Ledger Financing
Sales ledger financing is gaining traction as a financing option for mid-sized companies that are in good financial shape and are growing quickly. This solution is offered to companies that have outgrown conventional invoice factoring but are not able to meet the qualification requirements of a line of credit. Sales ledger financing offers a number of advantages to businesses, […]
Invoice Factoring vs. Sales Ledger Financing
Every company that is growing and doing well eventually experiences cash flow problems. Actually, the most common cash flow problem happens because customers pay invoices in 30 to 60 days. Companies can afford to offer terms and wait for payment – at least initially. But if your company is growing quickly, it will eventually run low on cash. […]
Advantages and Disadvantages of Payroll Financing
Payroll financing has been gaining traction as an effective way to provide funding to companies that need working capital to pay their employees. Companies with large payrolls often experience cash flow problems because of slow-paying clients. When this happens, the company must pay employees out of its own cash reserves. If the company is growing quickly, cash […]
Payroll Funding for Small Businesses
One of the greatest challenges that a small business owner can ever face is not having enough money to pay employees. Delaying payroll affects employee morale and your ability to retain key individuals. This article discusses how to use payroll financing to meet payroll and keep the business growing. We cover: 1. The most common […]
Payroll Financing for Staffing Companies
Making payroll is the most critical task for any growing staffing agency. You can retain high-quality talent only if you offer good salaries, good jobs, and you pay on time. However, cash flow problems jeopardize your ability to pay employees on time and prevent your company from reaching its true potential. In this article, we […]
What is Payroll Financing? How Does it Work?
Payroll financing is a solution that allows your company to finance invoices and assets so that it can make payroll. It usually refers to a common use of invoice factoring, though it can also refer to other solutions. In this article, we cover: 1. Do you have this problem? Making payroll is one of the […]
Eight Payroll Funding Options
One of the toughest problems that a business owner can face is not having enough money to make payroll. This scenario can create a lot of stress for the owner because it is not an easy problem to solve. As an entrepreneur, you feel responsible for your employees. They are your most important resource, and […]
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 […]