Entries by Jim Pendergast


Considerations for Your Business Budget

Budgets are necessary when trying to optimize your business. Without a goal and understanding of your income and cash flows, a business budget is essentially an aimless savings account with no intended purpose. When budgeting, you must know and understand what money is available to you, how much you spend, how much you can acquire, […]


12 Small Business Loan Industry Statistics

Suppose you’re considering applying for a small business loan. You might wonder how good your odds are of getting approved for some form of financing. We understand your concerns, and we’re happy to say that the odds of receiving some financing are in your favor. In this article, we’ll provide information on some statistics and […]


How to Calculate Your Free Cash Flow

When you’re running a business, there are many things to keep records of. There are expenses, taxes, and payroll, to name a few. One essential thing to track is your free cash flow, or FCF. It may seem daunting, but this article will detail what free cash flow is and how to calculate it. What […]

Cash Flow Modeling Techniques

Just like the water cycle for the Earth and blood circulation for the human body, cash flow for a business is vital. In fact, many businesses fail to run for longer than three years due to poor cash flow. Not only is cash flow necessary for a business’ survival, but it is also needed in […]

Behavioral Interview Tips for Staffing Agencies

Staffing agencies trying to place the best candidate in the right position need to ask specific questions. With behavioral interview questions, recruiters and staffing agency owners can readily determine if a candidate will excel in a new job. Behavioral interviewing involves specific questions that get at the heart of a candidate’s previous work experience and […]

Eight Tips for Growing Your Staffing Agency

Like in any other business, starting and running a successful staffing agency is easier said than done. Though there are several obstacles you will encounter in this field, one of the most significant challenges is a hyper-competitive industry. According to the American Staffing Association, there are currently about 25,000 staffing agencies, and these numbers are […]

How to Create a Marketing Strategy For Your Staffing Agency

When it comes to marketing, most companies jump right to the tactics and skip the necessary preparation and planning required to realize the best return on investment. While some rush to calculate ad spend budgets or work on billboard designs, the most successful companies understand marketing plans are like building a house. You must build […]

What Is MSP in Staffing?

You’ve been thinking about using a managed services provider (MSP) to help expand your staffing agency. But like with any investment, you don’t want to make a rash decision. Taking the time to do your due diligence in research and asking questions is important to you. Although there isn’t a “one size fits all” approach […]

What Is VMS in Staffing?

If you’ve heard about vendor management systems or VMS, you may be wondering if they’re right for your staffing firm. You’re looking to grow your staffing business and recruit more workers and employers to keep in your pipeline. However, letting a software application help you manage that process brings up a lot of questions. Will […]

Ways to Fund a Business Without a Loan

Starting and growing a business can be very daunting if you lack the necessary resources. This is especially when it comes to raising money to start a business. However, with adequate preparation and planning, you can get the funds you need without having to go for a loan. Given that new and existing businesses have […]


Is Invoice Factoring Possible with Bad Credit?

Your business might turn in a profit on paper, but if cash flow is limited, covering operational expenses can be a challenge. For businesses with bad credit or a limited credit history, using credit to cover expenses isn’t always the best solution. Invoice factoring is a better alternative while you build your business credit or […]

How to Understand Cash Flow Loans

Whether you want to fulfill payroll obligations, open a new business branch, or invest in a promising opportunity, a cash flow loan is an excellent way to finance your capital needs. Confused about cash flow loans and how they work? Here’s an in-depth guide covering everything, from what a cash flow loan is to the […]


Freight Broker Factoring Guide

Freight broker factoring is an excellent way to improve the cash flow of your trucking business. Freight brokers assist shippers by helping them find carriers to haul their freight loads. They serve as the intermediary, communicating with both shippers and carriers to ensure the timely delivery of a load. A freight broker’s profit is the […]

What Is A TWIC Card and Who Needs One?

There can be many forms for new trucking company owners to fill out and certifications to chase down. Knowing what applications and qualifications will best benefit your business can be a challenge. But if your trucking company intends to conduct maritime business, there’s one application your drivers shouldn’t skip. Here’s an explanation of what a […]

How Do Freight Brokers Pay Carriers and What Should Carriers Do If They Don’t Get Paid?

The freight broker can be an incredibly helpful part of a carrier’s business model. In the best of cases, they lighten the logistics load of the carrier, thereby increasing productivity, efficiency, and cash flow. In the worst-case scenario, however, the actions of insolvent or bad-acting freight brokers can run a carrier’s business into the ground. […]

How to Start a Staffing Agency

Finding the right workers can be a hassle. Companies can spend months vetting a potential candidate only to discover that they weren’t the top choice for a job. Nothing is more frustrating than hiring an employee, onboarding them, and then having it not work out. This common struggle is one reason why staffing agencies have […]

The Pros and Cons of a Merchant Cash Advance (MCA)

A merchant cash advance or MCA might look attractive to a small business owner who needs some quick cash. Revenue shortfalls or immediate expansion plans can create this need. Because MCAs aren’t technically loans, you don’t have to go through a traditional bank approval process. MCAs give you an advance based on a percentage of […]


Purchase Order Financing vs. Factoring

Cash flow can present problems for any growing business. Some companies need capital upfront to manufacture a product or start a project. Others need funds for day-to-day operations while they wait for invoices to be fulfilled. One way or another, just about every enterprise runs into issues with available funds at some point. While traditional […]

Recourse Vs. Non-Recourse Factoring

In order to survive in today’s competitive market and ultimately generate competitive edges, a company must weigh the short-term and long-term implications of various funding solutions. Cash flow is key to streamline operations, fulfill orders, maintain and gain market shares, and additional investments. According to Bloomberg, the global market size of factor finance services is […]

Factoring for Professional Service Providers

If you own and operate a professional services business, you’re probably all too familiar with cash flow issues. Your business may have strong receivables and reliable customers, but they’re still likely paying on terms of 30-90 days. This means your business is stuck waiting one to three months to receive payment on work completed today, […]

Factoring for Janitorial Services

Janitorial services companies offer an extremely valuable service to a wide range of customers. However, they often struggle with cash flow issues because of payment delays, even if they have customers with strong payment histories and solid reputations. That’s because they’re stuck with 30-90 day payment terms, meaning that the work they complete today may […]

Factoring for the Food and Beverage Industry

Food and beverage companies are no strangers to cash flow issues. Distributors, caterers, manufacturers and resellers all face one common problem: waiting on unpaid invoices. With long payment terms of 30-90 days, while trying to keep up with overhead and payroll expenses, food and beverage companies can easily get stuck, forcing them to turn to […]

Factoring for Wholesale and Distribution

Some industries are simply more suited for invoice factoring than others. The wholesale and distribution industry has been factoring receivables for hundreds of years, so let’s find out why that’s the case. It’s a natural fit for wholesalers and distributors, as they frequently struggle with cash flow. As the in-between for manufacturers and retailers or […]

Factoring for Oil and Gas

In the United States, the oil and gas industry is in a unique situation. On one hand, it is experiencing massive increases in production and demand from today’s new technological and innovative advancements, leading to increased margins. However, intense competition within a dense market of suppliers causes low prices, often resulting in a cash crunch […]

Factoring for Apparel Companies

The apparel and textile industry in the United States faces its fair share of unique problems, much like other manufacturing industries. They’re often used to long payment terms and cash flow issues. This can be a major stressor on a growing, or established apparel business. That leaves many looking toward alternative cash flow financing options. […]

What is Asset Based Lending?

Asset based lending is the process of borrowing money that is secured by an asset, or collateral. Asset based loans or lines of credit can be borrowed against equipment, property, inventory or receivables (in the form of an invoice factoring service). Businesses with larger transaction volumes and larger borrowing needs require custom solutions that meet […]


Cash Budget vs. Statement of Cash Flows

As a business owner, managing cash is a tedious but necessary part of the job. Keeping a hold of your cash flow is critical for a thriving, successful business, but it’s not always the simplest task or the easiest to understand. Two terms often thrown around in the realm of business management are ‘cash budget’ […]


How to Calculate the Cash Conversion Cycle

When you’re running a small business, you must know several formulas to keep expenses low and maintain high-profit margins. Other formulas present business owners opportunities to know how fast their inventory is selling and tracking cash flow, called the cash conversion cycle (CCC). It’s also known as the net operating cycle. Read on to find […]


Cash Flow Analysis Techniques and Tips

Running a small business is no easy feat, but running a successful small business takes even more time and skill. Performing a cash flow analysis and looking at your expenses can be the difference between your business floating or sinking. Knowing the financial health of your company helps you identify what you’re doing right and […]


What Is the Cash Ratio and How Is It Used?

The cash ratio, also known as the cash asset ratio, is a liquidity measurement used by financial analysts. Its purpose is to evaluate a company’s capability to pay off any short-term debts. This capability is determined by calculating the ratio of the short-term assets against a company’s short-term liabilities. There are two other common ratios: […]

What Is Net Working Capital? How to Calculate and NWC Formula?

Net working capital (NWC) is an organization’s total short-term assets minus its short-term liabilities. An organization’s net working capital paints a picture of its overall financial health and its being run efficiently. There are a number of ways to calculate net working capital depending on what the person analyzing the data is looking for. This […]

Understanding Factoring Agreements and Contracts

As small businesses grow, financial obligations also expand, and that can create more of a burden on the company’s owners. Instead of diving back into their own pockets or looking to family and friends for more financing, many small business owners will turn to factoring agreements. Factoring agreements and contracts bring in third-party financing with […]

What is COD?

When you start a new business, one of the first tasks you have to learn is sales invoicing, and, in particular, transaction types. Choosing the right transaction for your business helps you get paid on time and avoid delays in cash flow. One example of a commonly used transaction is COD or cash on delivery. […]

Purchase Order Financing Guide

What can a small business do when it needs more cash to expand inventory? One option is purchase order financing, but it may not be the best choice for every company. It’s important to understand how the solution works before jumping into a deal. What is Purchase Order Financing? When a small business lacks the […]


What is Payroll Funding?

Payroll funding is a type of invoice factoring specific to the staffing industry. Just like invoice factoring, payroll funding turns a business’s outstanding invoices into cash by selling them to a third party. Staffing companies often fall victim to long invoice terms and slow-paying customers. At the same time, they’re forced to make payroll and […]

What is a Factoring Company?

If your business has struggled with cash flow problems, you may have considered various forms of alternative lending. However, invoice factoring is a unique service that’s quite different from other cash flow financing. Here are some of the common questions we hear about factoring companies. What does a factoring company do? A factoring company specializes […]


Why is a Bank Factoring Company Better?

If you’ve already determined that invoice factoring is a good fit for your business, the next step is to identify the best factoring company for you. There are tons of different providers to choose from – so how do you know which is best? This article helps describe the differences between an independent factor and […]