Factoring companies often get calls from prospective clients interested in factoring invoices that are hard to collect. These invoices tend to be substantially past due and have become collections problems. The prospect hopes that the factor will buy the invoice and take on the collection problem. Past-due invoices that have become collections problems cannot be […]
How to Finance an Office Cleaning Company
Managing the working capital of a small and growing office cleaning company can be difficult. The company usually has to pay its regular expenses before it gets paid by clients. This payment delay can lead to financial problems. This article discusses two techniques to improve your cash flow and financial stability. We cover: 1. Slow-paying […]
Can an Invoice be Factored Before Delivery?
Every so often, clients want to factor an invoice that has not yet been fulfilled. Basically, the invoice is for work that is about to begin or products that will be delivered soon. These invoices are commonly referred to as pre-delivery invoices. Unfortunately, these invoices cannot be factored. This article explains why factoring companies cannot […]
The Importance of the Accounts Receivable Aging Report
The Accounts Receivable (A/R) Aging report is a critical tool for managing your business. This is why most lenders and factoring companies request this report as part of their due diligence process. Unfortunately, it’s one of the most valuable yet underutilized reports. This article helps you understand the value and uses of the A/R Aging […]
Why Can’t You Factor Net-90 Invoices?
Every so often, a client may want to factor an invoice that is due in 90 days or more. These types of invoices become more common during difficult economic times. Unfortunately, some larger companies are permanently moving their payment terms to net-90 and beyond for all suppliers. This time frame may help the larger company’s […]
Why do Staffing Agencies Get Higher Factoring Advances?
Summary: Most factoring companies advertise that they provide an advance of 80% to 90% of the invoice, depending on the client’s industry. For example, a manufacturing company with solid clients will likely get an advance of 80% to 85%. On the other hand, a staffing agency with similar clients will get a 90% advance. This […]
The Invoice Verification Process
Most factoring companies verify your invoices before depositing the advance into your bank account. Factors verify invoices to ensure they are accurate and don’t have any problems. This article explains the processes that factoring companies use to verify invoices. It covers: Why are invoices verified? Verification methods Customer impact What happens if there is a […]
The Due Diligence Process in Factoring
Due diligence is the process of reviewing a client’s information to determine if they are a good candidate for factoring financing. One of the advantages of factoring is that the due diligence process is simpler and faster than the process for other solutions. This article covers: If you need more information, read “What is factoring? […]
How to Finance A Wholesale Company in Canada
Wholesale companies can be very cash-flow-intensive businesses. You often need to buy products from suppliers to build inventory and fulfill sales. Unless you have payment terms with your suppliers, they often ask that you pay for the goods in advance or upon receipt. On the other hand, commercial clients usually demand payment terms as a condition of […]
Finance an Oil & Gas Pipeline Construction and Maintenance Company
Managing the cash flow of an oil and gas pipeline construction and maintenance company is challenging. Managers at the company often face complex operations and demanding cash flows. Consequently, the company risks financial problems if its finances are not managed correctly. This article discusses companies’ most common cash flow problems and provides two possible solutions. […]