Entries by Grey Idol

,

5 Types of Equity Financing for Small Business

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 […]

,

What Is the Average Collection Period Ratio?

Essential to any business is having customers pay invoices as quickly as possible, at least within the period allowed. The Average Collection Period ratio is a metric that can help determine how efficiently this is happening. Monitoring this metric can help a business determine if they have a collection problem than needs to be addressed. […]

,

Guide to Business Credit Scores and How to Check Them

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 can limit you from gaining access to reasonable loan interest rates and limit the number of loans you qualify for. If you want to increase […]

,

How to Calculate Accounts Receivable Turnover Ratio

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 […]

,

The Times Interest Earned Ratio and What It Measures

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 […]

,

Financing With Hard Money Loans

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 […]

,

What Is the Weighted Average Cost of Capital (WACC)?

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 […]

,

What Is Net Profit Margin?

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 […]

Best Big Banks for Small Businesses

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 […]

,

What Is Return on Equity Ratio (ROE)?

A return on equity (ROE) ratio measures the probability 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. […]

,

What Is an Opportunity Cost? How to Calculate

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 […]

,

Invoice Factoring for QuickBooks Guide

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 […]

,

How to Make a Profit and Loss Statement

Making a profit and loss statement (P&L) is one of the most important things you can do for your business. 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 health and help you make better decisions about where […]

,

Calculating Discounted Cash Flows in Payback Period

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 […]

,

Net Cash Flow and How It’s Used

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 […]

,

How to Make a Business Balance Sheet

A balance sheet is critical for any business, and you must establish one from the get-go. They are considered one of the basic financial instruments of a business. Keep reading to find out what exactly a balance sheet is, how to correctly build one, and ways you will use it in your business operations. What […]

,

How to Collect Unpaid Invoices & Deal With Them

You’ve been working hard for months, maybe even years, to build your business. You take care of your customers, and they love you for it. But a few of them are still not paying their invoices on time, and now you’re feeling the pressure to act professionally yet again. It’s an unfortunate reality that some […]

,

Standard Invoice Payment Terms

As a new business owner, it’s a good idea to understand the different invoice payment terms that are out there before you set up your invoicing system. For example, you wouldn’t want to be sending an invoice with a due date that is too early and risk having it returned, or one with dates that […]

,

How to Audit Your Cash Flow and Accounts Receivables

Creating accurate reports on your company’s cash flow is an essential part of running a successful business. A cash flow statement can show how your accounts receivables, 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 your cash flow and […]

How To Calculate Cash Flow Margin

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 […]

How to Refinance a Small Business Loan

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 […]

Cash Flow Risk Management and How to Reduce Risk

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 […]

Common Small Business Loan Terms

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 […]

,

Does a Business Loan Affect Personal Credit?

Financing a business isn’t always straightforward. There are periods you have to take loans to sustain your business. The business ecosystem is very volatile, meaning your company can sometimes default on loans. And that’s when your business finances can get mingled up with personal credit. But do business loans affect personal credit? The answer to […]

How To Prep For A Level 1 DOT Inspection

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 […]

How to Start and Run a Trucking Company

According to statistics, 70% of the freight in the United States is transported using trucks. With this in mind, it is safe to say that a trucking business is one of the businesses with a high possibility of venturing from a startup to a large company within a short time. Unfortunately, as in any other […]

How to Write a Trucking Business Plan

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 […]

Requirements for a Driver Qualification File

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 involves a lot more than finding someone with a commercial driver’s […]

How to Get Trucking Authority

Let’s face it — getting trucking authority is never a walk in the park. There is a plethora of online information 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, which means more significant profit. Even so, how do […]

,

Average Trucking Invoice Factoring Rates

Cash flow is the beating heart of every business. When cash flow is poor, your entire business suffers the consequences. As a small business owner (perhaps even a new small business owner), the threat of poor cash flow can undermine every financial decision you make on behalf of your business. If you’re scraping the bottom […]

How Do Freight Brokers Find Shippers and Loads?

Shipping is an interesting and complex industry, which means that independent freight brokers have a lot on their plate. One of the most challenging aspects of freight brokerage is securing shippers or long-term clients. Establishing, maintaining, and growing your customer base requires a reasonable amount of time and dedication. The following guide will help you […]

,

How to Finance a Trucking Business

With more and more consumers preferring to shop online, the demand for shipping services keeps rising. The trucking industry has been picking 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 from […]

,

How to Improve Cash Flow for Your Trucking Company

Most small business owners are acutely aware of the challenges associated with expanding their business. 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 […]

How To Create Trucking Invoices That Get You Paid

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 […]

How To Do a Budget Analysis for Your Business

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 […]

How to Find Clients for Your Staffing Agency

Running a staffing agency can be an extremely lucrative venture if you know how to attract clients. Finding clients is one of the single most significant and most essential factors in a staffing agency’s success. Without clients, businesses fail; the same rule applies to staffing agencies. Here’s a guide to help you learn how to […]

How to Run a Successful Staffing Agency

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 […]

How to Get Out of a Merchant Cash Advance

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 […]

What You Should Know About Taxes and Factoring

Are you a business owner dealing with the trouble of sending invoices out and waiting for the due date to get paid? Sometimes, this can put a real crimp on your cash flow – as you need to pay for other miscellaneous expenses or even payroll. That is why more businesses turn to invoice factoring […]

Accounts Payable Management and Profitability Impact

Accounts Payable (AP) is an essential resource for businesses in the management of payable obligations. Usually, AP refers to the amount a specific party owes to a given supplier or vendor. To elaborate, once the client places an order and receives it before releasing finances, they should record the liability amount in a record book. […]

How to Fill Out an Accounts Receivable Aging Schedule

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 […]

How to Price Staffing Services

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? […]

Best Apps for Staffing Companies

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 […]

Payroll Loans vs. Payroll Funding

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 […]

,

What is Debt Factoring?

Business owners always seek out ways to leverage their assets. Debt factoring is a specific form of financing designed to help partners and managers reach short-term business goals. Debt factoring is based on selling accounts receivables to an entity that pays a fee for those accounts receivables. The third-party entity offers the seller a percentage […]

How to Choose the Right AR Management Solution

Behind every thriving company is an efficient accounts receivable game plan. 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 a product or service. If you don’t keep a close eye on this aspect of your business […]

,

How to Record Invoice Factoring Transactions

In business factoring, companies they sell them to a factoring company. This type of financial transaction helps a business reduce its credit risk. Businesses also factor invoices if they need immediate cash. When businesses factor their invoices, they usually sell them at a discounted price. Because the process involves several steps, recording invoice factoring transactions […]

,

How to Create a Business Cash Flow Statement

What exactly is a cash flow statement? Before you can make one, it is essential to understand the definition of what a cash flow is. Cash flow is a company’s ability to generate revenue and the operational turnover of a business. The cash flow statement is part of the trifecta of financial statements that are […]

How to Complete a Break-Even Analysis

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 […]

What is Spot Factoring?

Spot factoring is a way for companies to use a third party to handle single big invoices. It differs from traditional invoice factoring relationships because of the order’s size and can be a financially intelligent way for a company to ensure that single invoices get paid. It tends to be more expensive than traditional factoring, […]

What Is Non-Recourse Factoring?

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 […]

Invoice Discounting

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% […]

What is Crowdfunding?

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 […]

What Is the Current Ratio?

The current ratio is an essential metric that small business owners, in particular, should keep a close eye on for their own company. It is also necessary for an investor to understand the current ratio in multiple companies when purchasing stock. What Is the Current Ratio? The current ratio is a commonly used metric in […]

Debt-to-Equity Ratio: Calculation and Measurement

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 […]

9 Ways for Businesses to Survive and Thrive During COVID-19

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 […]

Didn’t Get a PPP Loan? Here Are Your Other Financing Options During COVID-19

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 […]

,

Accounts Receivable Factoring

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 […]

What is Alternative Lending?

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. […]

Best Accounting Software for Small Businesses

As a small business, keeping up with finances can be a nightmare, especially as the business grows and things get more complicated. Not all of us were born with a love of numbers, and cash flow management is tough! Maybe you started a successful business with little understanding of balance sheets, invoicing, or payroll management. […]

Choosing the Best Factoring Company

Considering invoice factoring as a cash flow solution for your business? With so many options, choosing the best factoring company for your business may seem overwhelming. No two factoring companies do things exactly the same – they specialize in different industries, offer different terms and use different language. These differences make comparing factoring companies difficult. […]

Accounts Receivable Financing Rates Explained

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 […]

,

Does Invoice Factoring Affect My Credit Score?

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 […]

Invoice Factoring for Startups

Anyone who has started a business understands the immense challenges of getting it to the next level where it can grow and prosper. The central challenge for startup businesses is having sufficient working capital on hand to manage operations and pursue growth opportunities. In fact, the working capital requirements of startups can actually become a […]

The Invoice Factoring Approval Process

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 Advantages and Disadvantages

Invoice factoring can help business owners fill the gap between when an invoice is created and when the customer actually pays. It’s a way of obtaining cash to invest back into your company sooner rather than later, though you’ll want to be wary of extraneous fees and sneaky policies before sealing the deal. What are […]

Invoice Factoring Myths and Misconceptions

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 […]

Invoice Factoring for Consulting

If you own or manage a consulting firm, you know that cash flow can be a problem. You incur unusually heavy upfront costs—to hire the best professionals and ensure they receive the ongoing training they need to remain up-to-date. What’s the Main Cause of The Problem? However, the very clients you work so hard to […]

,

Payroll Funding for Staffing Companies

Staffing companies face unique working capital challenges. Nearly all staffing firms face cash crunches. This is primarily the result of the payment terms that the staffing firm’s customers require at the outset of a relationship. However, long payment terms in itself is not necessarily the issue. Nor is it the cash intensive nature of supplying […]

Factoring for Manufacturing

Earning a top position among manufacturing companies is becoming increasingly difficult due to the rapidly changing landscape of the manufacturing industry. Amid the many challenges facing manufacturers today are employee skills gaps, cash flow hindrances, and keeping up with innovation. Here at altLINE, our team specializes in invoice factoring solutions for manufacturing companies. Below we […]

Staffing Companies: A Breakdown of Financing

Running a successful staffing company requires managing multiple priorities, relationships and partnerships. This balance often presents a tough challenge even for seasoned staffing professionals. Staffing companies that find the right employees and reliable partners stand to enjoy greater profitability and growth. In this post, we’ll address key points related to financing for staffing companies: industry […]

The Southern Bank Celebrates 80 Years – Then & Now

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 […]

,

Invoice Factoring vs Bank Loans

The comparison of factoring vs bank loans comes up often among businesses looking to access working capital. As a factoring bank, altLINE by The Southern Bank offers a unique perspective on answering this question. We provide businesses in all industries and sizes a broad range of commercial lending options. These include invoice factoring and traditional […]

,

Is Invoice Factoring the Same as AR Financing?

Does your business need financing to grow or improve cash flow? If so, invoice factoring and accounts receivable financing may be options you’re exploring. A tremendous amount of information exists online, but the viewpoints often prove more confusing than helpful. Many financing and factoring companies use the terms factoring and accounts receivable financing interchangeably. In […]

Switching Factoring Companies

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 […]

GA Staffing Association Putting Champs!

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 […]

Is Invoice Factoring Float Costing You?

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: […]

,

Payroll Funding Exit Strategy

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 […]

12 Questions to Ask an A/R Financing Partner

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 […]

How to Get Your Invoice Paid Faster

For many companies Accounts Receivable collection can at best be described as a chore and at worst as an anxiety-inducing experience where one large delinquent customer can put their own business in jeopardy. As a bank that offers factoring, or Accounts Receivable financing, The Southern Bank has a wealth of experience optimizing accounts receivable collection […]

Cash Flow Problems and Customer Payment

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 […]