When you are a small business owner, your company will likely have a challenging time managing cash flow. It is also likely you’ll need to pay for goods and services before you have the cash to do so – things like payroll, for example. This is where invoice factoring can help, by turning your outstanding […]
Starting a new business presents many challenges, especially having insufficient capital. As a small business owner, you may not have enough money to start and grow your business. So you have to rely on others to provide you with capital. Individuals and organizations willing to finance your business will give you different terms, depending on […]
Every business owner should work to ensure customers are paying invoices in a timely manner. Slow-paying customers can cause serious cash flow problems for any business, so it’s crucial to analyze how customer payment habits are affecting your company’s growth. To do this, you can turn to the Average Collection Period ratio. The Average Collection […]
A good credit score plays a huge role when looking for business financing. If you are currently struggling with getting business financing, check your credit score. A poor credit score might be what’s preventing your business from gaining access to reasonable loan interest rates and limiting the number of loans you qualify for. Once you […]
There are many calculations and metrics that can provide valuable insight into your business operations and financials. One metric, the Accounts Receivable Turnover ratio, it’s useful to track how efficiently you collect debts from customers to whom you have extended credit. Too many late or delinquent payments negatively impact cash flow. Here’s what business owners […]
A company’s financial health is calculated using several different metrics. One is the Times Interest Earned (TIE) ratio, also called the Interest Coverage Ratio. Most companies need to borrow money occasionally to maintain or expand their business. However, if a company can’t meet its debt obligations, it could go bankrupt. The TIE ratio is a […]
Whether traditional lenders have turned you down or you’re simply considering financing options for an upcoming business venture, you’ve likely come across the term “hard money loan.” What is a hard loan, though, and is it right for you? What Is a Hard Money Loan? A hard money loan is a type of loan that […]
Running a business requires a solid understanding of basic financial terms and equations. You can use this financial knowledge to understand better how your company operates and ensure you track your finances correctly. This short article defines and details the formula for the weighted average cost of capital (WACC). This formula may seem confusing at […]
Net profit margin is one of many ways to measure the success and growth of your business over time. Your business’s net profit margin can inform decisions related to the profitability of your business, but it can’t tell you everything. Read on to learn more about net profit margin, calculating it, and how it can […]
One of the worries small businesses have is how they’ll handle their financials and who will be responsible for their banking needs. It’s a legitimate concern when deciding which banks to handle your money or which banks to choose for financial support. Depending on what you plan to do in your business, you may find […]
A return on equity (ROE) ratio measures the profitability of a business. To calculate the return on equity, business owners must divide the net income by the shareholder’s equity. Shareholder’s equity is a business’ gross assets minus liabilities. ROE is an essential metric for business owners because it allows you to gauge your profit levels. […]
Opportunity costs are expenses you pay when you choose one alternative option over all others. These costs may be financial but are not limited to and are necessary to consider for all business owners. This article will give an in-depth analysis of what opportunity costs are, their applications in the real world, and how you […]
You want to grow your business, but you’re finding it difficult to get the cash flow that you need. You’ve tried asking for a loan or getting an additional credit card, but the banks say you don’t have enough collateral or enough credit history. What do you do? Invoice factoring can be a solution to […]
Making a profit and loss statement (P&L) is one of the most important things you can do for your business—in fact, it’s one of the three essential financial statements. This document tells you how much money your company has made and lost over a specific time. It can also provide insights into your business’s financial […]
Business owners and project managers use tools like discounted cash flows in the payback period to make fiscally responsible investment decisions. You can determine whether a proposed project is viable with this formula since this formula compares the initial costs involved with the financial returns you can expect to receive. In this article, you will […]
If you’re a first-time small business owner, you’re probably getting hit with financial terms like “net cash flow” that would make the average person want to run for the hills. However, it is important to stay informed to help your business remain afloat. Understanding bankruptcy, profit and loss and everything in between – financial literacy […]
There’s a reason a balance sheet is considered one of the three essential financial statements. By making a balance sheet, business owners get an inside look into how your business is performing, thus providing a guide to make more informed decisions moving forward. Every business owner needs to know how to make a balance sheet. […]
Running your own business presents a lot of upside. It provides flexibility and full control to make every important business decision. However, that’s not to say owning your own business or working as a contractor is all roses. Whereas being an employee makes your paycheck a sure thing, business owners get paid when their clients […]
You’ve been working hard for months, maybe even years, to build your business and take good care of your customers. But regardless of how committed you are to fostering these relationships, it’s not uncommon for them to fail to abide by payment terms and allow invoices to become overdue. You may then be left wondering […]
As a new business owner, learning different invoice payment terms before setting up your invoicing system is crucial. You don’t want to sign a contract with a supplier or buyer without knowing all of your options regarding payment terms, because you might be missing out on an option that’s more suitable for both your business […]
Performing a cash flow audit is an essential responsibility that every business owner should have on their year-end accounting checklist. Auditing a cash flow statement can show how your accounts receivable, inventory, and accounts payable line up yearly. By analyzing these trends, you’ll be better prepared to help your business grow. Falling behind on auditing […]
It’s not uncommon for companies to not have enough cash on hand for their daily operations. This is why 20% of new businesses fail during their first two years of opening, 45% during their first five years, and 65% during their first decade. Whether you are finding it difficult to get new stock, buy new […]
A company’s cash flow margin is one measure of its profitability. The cash flow margin reveals whether an organization can convert sales activities into liquid assets. While this margin can also show how profitable a company is, there isn’t a firm, universal baseline. A margin that’s ideal for one company might indicate a loss of […]
Most business owners don’t recognize that their current loan may no longer be the best for their enterprise. And as the Covid-19 pandemic lingers, many small businesses are looking for help to remain operational. After paying your business loan for some time, there are options to reduce your debt even further. You may extend repayment […]
In any business, cash flow, which is the amount of money that moves in and out to determine the value of the business, causes entrepreneurs sleepless nights. Because a business is exposed to several uncertain financial issues, cash flow risk can come in many forms. These include competitive, industry, or financial cash flow risk, resulting […]
When running a small business, you may need to get a loan to expand your operations. However, there are many small business loans out there that have varying terms and conditions. By understanding the terms, amounts, time to funding, and eligibility requirements, you can spot a quality small business loan for your company. Whether you […]
Financing a business isn’t always straightforward. There are periods you have to take loans to sustain, or even kickstart your business. Since the business ecosystem is very volatile, your company must sometimes default on loans, and that’s when you might think your business finances can potentially get intertwined with personal credit. But do business loans […]
While not the most glamorous part of the job, pulling over for a DOT inspection is part of the job as a truck driver. Your drivers will have to make sure that they are ready to stop along their routes. The DOT does these inspections to make sure that everything is safe and secure. Many […]
Starting your own trucking business can be a highly rewarding undertaking. According to Zip Recruiter, the average semi-truck owner-operator in the U.S. brings home $228,575 per year. With this in mind, it’s no surprise why starting a trucking company is such an exciting venture for entrepreneurs. Trucking companies have some of the highest potential for venturing […]
If you have an entrepreneurial spirit and a passion for trucking, you may have considered starting a trucking company. However, owning a business is a challenging task if you don’t have a plan. A business plan can help you define your company’s mission to get investors, loans, partners, and employees interested. You will prove to […]
The commercial motor vehicle industry is associated with big trucks, multiple deliveries, long drives, and rest stops – not mountains of paperwork. However, documents, certifications, and background checks play a crucial role in operating a commercial motor vehicle (CMV) company. Hiring a truck driver hiring process involves a lot more than finding someone with a […]
Truck detention is something that happens often in the logistics business – it’s common and often unavoidable. However, to make the most of your time and money, there are ways you can plan for detention and minimize detention fees. For freight shippers, understanding truck detention is a critical component to protecting your bottom line and […]
Let’s face it — getting trucking authority isn’t a walk in the park. There is a plethora of information you’ll find online that can make it hard to keep track of all the required steps. Having your trucking authority means you cut the third player or middleman, thus opening doors for more significant profit. But […]
Cash flow is the beating heart of every company, so when negative cash flow permeates your trucking business, you feel the consequences. Because of the threats posed by cash flow problems, many trucking business owners turn to invoice factoring (or “freight factoring” as it’s known in the industry), an alternative financing solution aimed to negate […]
Shipping goods from Point A to Point B sounds simple, but it’s usually a complex process, meaning that independent freight brokers have a lot on their plate. Some of the most common challenges for freight brokers are consistently finding loads to haul, finding shippers for those loads, and forging long-term partnerships with shippers. Yet while […]
With more and more consumers preferring to shop online, the demand for shipping services keeps rising. The trucking industry has been picking up pace in recent years, considering that trucks transport 70% of the total domestic freight tonnage. As per recent research, 63% of online shoppers expect their package to arrive in under three days […]
Most small business owners are acutely aware of the challenges associated with expanding their businesses. Trucking companies are no exception. It isn’t easy to establish and maintain a trucking business. It takes hard work, business knowledge and quick thinking to succeed. While not all business owners will be successful, those who succeed take the time […]
If you own or manage a trucking business, you must have an idea of how much slow-paying customers can affect day-to-day operations. There are many expenses to take care of, such as fuel, fleet maintenance, salaries, etc. If you have a negative cash flow, crucial parts of the business can grind to a halt. But […]
Like it or not, budgeting is one of the most crucial aspects of running a successful business of any size. Your monthly budget—and the in-depth analysis it entails—gives you all the information you need about the money your business brings in and where it’s going. Tracking your cash flow is especially important if you have […]
If your company operates in the retail industry or provides a product or service, you’ll need to know how effective your collections efforts are during the year. There is a method for determining this information: your accounts receivable turnover ratio. It may sound complicated, but calculating this ratio is pretty simple. This is something every […]
Winning clients is the single most significant and essential factor in growing a staffing agency from the ground up. If you know how to find clients, running a staffing agency can be a lucrative venture. As long as you’re ambitious and are deploying the right strategies, the sky is the limit for your business. To […]
Being a small business owner comes with plenty of ups and downs. The day-to-day machinations can be thrilling to take part in. It’s exciting to watch as your business chugs along, perfecting its craft and meeting the needs of the customers for whom you started this business in the first place. In the world of […]
Running a staffing agency requires some insight and several skills in addition to planning and attention to detail. Each part of the company needs to be fine-tuned to produce positive results and steady growth. The company’s success requires a solid business plan designed to handle multiple accounts and fluctuation in growth over time effectively. Although […]
We all know businesses need money to function and grow. If you’re a small business owner who is short on cash, you might be desperate to try any payment or loan method. That desperation can lead to poor decision-making and can put your business in an even stickier situation than where you started. One of […]
Business owners often struggle with slow-paying customers or long payment terms causing cash flow problems, putting a cramp on finances. This is why more and more businesses are turning to invoice factoring for faster liquidity by getting paid faster. While factoring has been around for a while, it’s still a relatively unknown alternative funding solution […]
Accounts Payable (AP) is a staple of accounting, as managing your payable properly goes a long way to ensuring overall bookkeeping organization. AP management refers to the process of recording liability amounts in a record book, verifying expenses owed to a specific party, processing payment for those expenses, and documenting all payments. AP is a […]
Proper account receivables management is among the key secrets to a thriving business. It helps the management identify and fix potential cash flow problems, conversely facilitating smooth-sailing operations. An excellent way to stay on top of account receivables is through an aging schedule. From what it is to why it’s of the essence, below is […]
When you start a staffing company, you need to know the proper amount to charge for your services. You don’t want to charge too little and lose money for your time and effort, and you also don’t want to aim too high and scare off potential customers. So, how do you achieve the right balance? […]
Hiring employees can sometimes feel impossible. Lately, finding reliable employees can be more difficult than it has been in the past. But there is technology available that can help make the hiring process easier for staffing companies. Staffing agencies can utilize mobile apps to help bridge the gap between hiring companies and eligible employees. This […]
Running a small business can be as much about timing as anything else. Cash comes in. Cash goes out. Payroll loans and payroll funding (also known as payroll factoring) provide important ways to balance these occasionally unpredictable flows of money. Getting the timing of your financing right can become crucial to keeping your small business […]
Business owners always seek out ways to leverage their assets. One way to do so is by utilizing debt factoring — a specific form of financing designed to help partners and managers reach short-term business goals and obtain funding without a loan. Debt factoring is based on selling accounts receivables to a third-party debt factoring […]
It’s easy to get lost in the pile when it comes to tracking invoices and remembering how much money your customers owe you after providing them with your services. If you don’t keep a close eye on this aspect of your business finances, you may lose money, and your business could suffer the consequences. That’s […]
In business factoring, companies sell their unpaid invoice to a factoring company in exchange for a cash advance. This type of financial transaction helps a business reduce its credit risk and receive immediate cash. When businesses factor their invoices, they usually sell them at a discounted price. Because the process involves several steps, recording invoice […]
Every business owner needs to have a good understanding of the three essential financial documents: profit and loss statement, balance sheet, and cash flow statement. A profit and loss statement details income and expenses over a certain period, and a balance sheet details your assets and liabilities, but what exactly is a cash flow statement? […]
Your business is running; you’re making sales; inventory is turning over, but are you making a profit? There are many costs involved in running a business, from salaries to rent to insurance to payroll, and even more so in the early days of a new company when the investments typically surpass the initial sales. It […]
Spot factoring, also known as single invoice factoring, is a way for companies to improve cash flow without taking out a loan or selling equity. Spot factoring differs from traditional invoice factoring because it is primarily used to factor a single large invoice, rather than a set of invoices. It tends to be more expensive […]
Finance companies generally offer two kinds of invoice factoring, recourse, and non-recourse factoring. In the case of non-recourse factoring, the factor (a third party who buys a company’s invoices for services rendered to give them the cash needed upfront) will assume the loss of unpaid invoices to end customer insolvency. This guide explores: Invoice factoring […]
Cash flow is something most small businesses struggle with. Around 80% of small businesses have a hard time producing enough cash flow in their first five years. Sometimes you have the customers, but expenses are due, and you don’t have time to wait for unpaid invoices. Invoice discounting companies offer loans of up to 95% […]
It is often a struggle for entrepreneurs to find ways to fund their new business ventures. There are plenty of options, from traditional to unique. A popular and newer idea in business funding is crowdfunding. This method allows you to raise quite a bit of money without asking for a huge risk from those investing […]
There are few more important financial metrics for business owners than the three liquidity ratios: the quick ratio, cash ratio, and current ratio. Studies show that 50% of small businesses have fewer than 15 cash buffer days, a worrying statistic given these businesses are at great risk of failing if financial challenges are to arise. […]
When it comes to figuring your ability to secure funding for your business, you need to have a clear idea of your financial situation. There are many ways to do this. You must start by gathering all your financial data. You can then use several formulas to assess your current standings. One of those formulas […]
No matter the size of your business, it probably has been caught in the crosshairs of COVID-19 in one way or another. The pandemic has brought businesses to their knees, fighting to keep customers and finding new ways to stay innovative and grow. Businesses can survive during the COVID-19 pandemic, but it’s going to take […]
The Paycheck Protection Program (PPP) offers much-needed relief for small business owners struggling to stay on top of costs during the pandemic. Unfortunately, not every entrepreneur managed to secure one of these loans. Hasty implementation and high demand for funds led to system crashes, processing delays, and other complications. If you fail to benefit, there […]
If your business has cash flow problems, one option that can provide an immediate cash infusion into your business is to sell your accounts receivable. Selling receivables is called invoice factoring, an alternative financing solution aimed primarily to improve a company’s cash flow and liquidity. But factoring, as with other alternative lending options, is not […]
One of the most common issues facing any business are cash flow delays. Whether your customers aren’t paying on time or you’re facing massive growth opportunities, a lack of cash on hand can derail your company’s progress. Thankfully, you have options to keep your business rolling. Accounts receivable factoring is one financing possibility that could […]
Alternative lending refers to any type of financing outside of traditional bank loans. For a number of reasons, a business would either choose, or be unable, to secure traditional financing with a bank. Things like poor credit, limited operating history, or a lack of hard assets can make a business unfit for most bank loans. […]
As a small business owner, keeping up with finances can be a challenge, especially as your business grows and accounting gets increasingly complicated. But the importance of business accounting means you can’t just find a makeshift solution. Instead, the best business owners master the art of accounting. And for many, it’s mastered with the help […]
Considering invoice factoring as a cash flow solution for your business? With so many options, choosing the best factoring company may seem intimidating, because no two factoring companies operate the same way. They might specialize in different industries, offer varying terms and fees, and use different language. These differences mean it’s necessary to do your […]
Specialty lenders often use the terms Accounts Receivable Financing and Factoring interchangeably. At altLINE, we purposefully differentiate between the two with distinct structures. Whatever a lender may call it, there are certain things to keep in mind when evaluating options. How are Accounts Receivable Financing Rates Determined? Similar to other A/R based lines, your Accounts […]
No one likes to pay too much for a product or service, which is why we all shop and compare when we buy just about anything. But, when it comes to certain types of business services, you typically get what you pay for, which can end up costing you much more in many ways. You […]
For businesses looking for a quick cash infusion, accounts receivable factoring (also referred to as accounts receivable financing) may be an ideal solution. However, there is a popular misconception that may be preventing many businesses from considering it as a financing option, which is when you are factoring accounts receivable, you are taking out a […]
Successful business owners know how important their business credit score is. Building and maintaining a solid credit score is crucial for businesses as it can impact their ability to access capital as well as their credibility with vendors and customers. However, as less established businesses work to build their credit score, their access to traditional […]
One of the greatest challenges of running a startup business is achieving a positive cash flow to grow your company and pay expenses. Unfortunately, many startups’ finances depend on customer invoices that can take weeks or even months to be paid, creating a cycle of negative cash flow and increasing debt. Invoice factoring for startup […]
The rising popularity of invoice factoring as a no-fuss, no-muss funding source for businesses has spawned an entire industry of factoring companies offering a range of options to address the varying types, needs, and preferences of businesses. But factoring isn’t the only alternative financing solution you’ll come across – you’ll also see factoring companies offer […]
An increasing number of businesses are discovering the advantages of invoice factoring, the biggest of which is quick access to capital. Anyone who has applied for a business loan through a bank understands how cumbersome and lengthy the process can be, often taking weeks for approval. Compare that to three or four business days for […]
Invoice factoring can help business owners fill the gap between when an invoice is created and when the customer actually pays. Obtaining cash to invest back into your company sooner rather than later is one of the main advantages of factoring, though you’ll want to be aware of potential disadvantages of factoring as well, such […]
All growing businesses reach a critical juncture when they need access to capital to get to the next level. Whether it’s for hiring more staff, expanding operations, buying inventory, or taking on new customers, small businesses often come up short due to the lag between growing sales and the cash flow it creates. Factoring invoices […]
Many consulting firms spend lots of money upfront to hire the best personnel and train them to their standards. Unfortunately, some customers make you wait weeks or even months for payment, leaving you to foot the bill, increasing debt and disrupting cash flow. To grow your professional consulting firm and compete in the market, you […]
For businesses in the manufacturing industry, maintaining consistent cash flow is one of the most significant challenges because prompt invoice payments are required to achieve it. Unfortunately, because long invoice payment terms are common in the industry, cycles of negative cash flow and mounting debt can occur, particularly when dealing with slow-paying customers. A solution […]
Running a successful staffing company can be rewarding, but you have to first get financing for your staffing agency to get your new venture off the ground. There are plenty of financing options available, but it can be intimidating to decide which solution best fits your business. In this article, we’ll address key points related […]
The Southern Bank Company, a full-service bank based out of Gadsden, AL is pleased to announce that 2017 will be its 80th anniversary. The bank has branch locations in Gadsden, Guntersville, Albertville and Centre, with a specialty commercial lending division, altLINE, operating out of Birmingham. The bank would like to thank the community for great […]
Every business needs funding at some point. Some need it just to get started, others need it to meet payroll, and others need it for business expansion purposes. But not every type of funding will be available to business owners. If you run a small business, you may be restricted to alternative financing due to […]
Does your business need financing to expand or improve cash flow? If so, invoice factoring and accounts receivable financing are options worth exploring. A tremendous amount of information exists about these two financing solutions, but after researching, you might be left feeling confused. Many sources use the terms factoring and accounts receivable (AR) financing interchangeably, […]
As with any financing relationship, make it a priority to understand your exit strategy options with your factoring company. Before you enter into the relationship, ensure you know the steps to take and associated penalties in case you need to break the contract. When is the Right Time to Switch Factoring Companies? Switching your financing […]
If you’re a business owner considering invoice factoring, the Notice of Assignment (NOA) may cause you some concern. What will my customers think? Why is it necessary? Can we skip sending it? Let’s address these questions to clarify what the NOA covers and put to rest any lingering apprehension. What is a Factoring Notice of […]
Thanks to everyone who came out to The Southern Bank’s Putting Contest at the Georgia Staffing Association‘s 16th Annual Golf Tournament! It was a great afternoon of golf and networking with many members and guests of the GSA. Congratulations to Charles Creech, of Synergy Insurance, and Mike Mitchell, a guest of EmployBridge, for winning The […]
Every invoice factoring company structures a deal a little differently, so it’s often difficult to compare proposals. By focusing on a few key aspects of invoice factoring agreements, we aim to help business owners make better, more informed financing decisions. We’ll be taking a closer look at four important areas of an invoice factoring agreement: […]
Before beginning a financing relationship with a funding partner, understand the steps required to terminate the relationship if needed before the end of the term. Complex structure and lengthy verbiage make contracts difficult to decipher, particularly payroll funding agreements. Transparency and clarity are “must haves” in your payroll funding relationship. Why You May Want to […]
If you are like most small business owners, securing financing often involves emotions ranging from uncertainty to frustration as you navigate the alternatives. In addition to your daily job responsibilities, the demands of evaluating borrowing options can be stressful and overwhelming. This straightforward buyer’s guide serves as a starting point to help you with the […]
For many companies, accounts receivable collection can at best be described as a chore and at worst as an anxiety-inducing experience, where just one large delinquent customer can put a business in jeopardy. Whether it’s one unreliable customer or several, business owners regularly find themselves asking the question, “how do I get paid faster?” If […]
What do agencies, staffing companies, manufacturers, consultants and other industries all have in common? In addition to supplying products and services to Fortune 500 companies, they’re all subject to the same strain caused by one of the latest trends in corporate finance – longer payment terms. More often than not, cash flow problems and extended […]
