Entries by Jim Pendergast

What Is an Invoice Number?

An invoice is a crucial business document for payment tracking and record-keeping. But if you’re dealing with hundreds of invoices per month, which the average business owner is, there needs to be a way to easily track and manage one invoice to the next. To achieve this, look no further than invoice numbers. You’ve probably […]

What Is a Fuel Surcharge?

To run a successful trucking company, you must charge appropriate rates. While owner-operators can pull in an average yearly salary of $323,696, much of this goes to covering their expenses — fuel, in particular. In fact, rising fuel prices consistently rank as the top concern for the trucking industry as a whole. Because of this, […]

Working Capital vs. Cash Flow: How Are They Different and How Are They Related?

When it comes to keeping your business financially healthy, two of the most important terms to understand are working capital and cash flow. However, new business owners might not understand the differences between them. While working capital does influence cash flow and vice versa, they are each their own distinct measurement, so it’s pivotal to […]

What Are Net 90 Payment Terms and How Do They Work?

Few invoice payment terms have more significant ramifications than net 90. Reason being, net 90 are some of the longest payment terms you will come across as a business owner, meaning working on these terms can greatly affect business cash flow for both the buyer and seller. Because of this, it’s important to analyze net […]

Is Being an Owner-Operator Worth It?

When it comes to a career as a truck driver, there are generally two main options: working as an owner-operator or a company driver. Naturally, this leads to owner-operator vs. company driver comparisons. And of course, because owner-operators have to deal with the complexities of running their own business, there’s the big question: is being […]

Net 45 Payment Terms: What Are They and How Do They Work?

Payment terms are the foundation that allows for seamless transactions between buyers and sellers. Common payment terms include “net D” terms, which specify the amount of time a business or consumer has to complete a payment, in which “D” stands for “days”. One of the most common net D terms that you’ll likely come across […]

Best Free Apps Every Small Business Owner Should Have in 2023

The ever-evolving modern business landscape is filled with apps focused on boosting efficiency for businesses. As an entrepreneur, it’s important to remember that leveraging mobile apps for running a small business is one of the most efficient ways to grow your company. When utilized correctly, the right apps can significantly improve your team’s workflows, collaboration, […]

What Is Net 60 And How Does It Work?

In the world of business transactions, payment terms are the linchpins upon which the entire system is constructed. They play a crucial role in managing cash flow and maintaining healthy financial relationships, and for any business owner, understanding payment terms is vital prior to creating an invoice. A relatively common payment term is net 60. […]

What Is Cash Against Documents and How Does It Work?

So you’ve struck a lucrative deal overseas. The contract is signed; now comes the stressful part. Will you get paid? Will the products arrive? Dive into the world of Cash Against Documents (CAD), the international payment method that can be beneficial for both buyers and sellers. Not only does Cash Against Documents help bridge the […]

Owner-Operator vs. Company Driver: What’s the Difference and What’s the Better Option?

Owner-operator vs. company driver is a common debate in the trucking industry. Which one pays more? Which one requires more work? And ultimately, is it better to be an owner-operator or company driver? There’s no one size fits all answer, but by taking some time to better understand the differences, you can decide which is […]

Staffing vs. Recruiting: What’s The Difference?

“Staffing” and “recruiting” are two terms often used interchangeably, but they actually don’t mean the same thing. Knowing the difference between staffing and recruiting is important for many, considering about 40% of companies have outsourced most—if not all—of their hiring processes. Even staffing agency owners might not be aware that staffing and recruiting have separate […]

What Is Invoice Verification And How Does It Work?

In the complex web of business transactions, invoice verification is an essential process, often underemphasized yet hugely consequential. Incorrect invoices contribute to 61% of late payments—a compelling testament to the significance of efficient invoice verification. The dangers of invoice fraud loom large, as even savvy business moguls are not immune, including ‘Shark Tank’ investor Barbara […]

What Is 2/10 Net 30 On An Invoice?

While you may already have a good understanding of standard invoice payment terms, this doesn’t necessarily mean your cash flow problems will go away. Even when clients and customers agree on payment terms, many clients still don’t pay on time. Delayed payments can create a serious cash flow crunch for your business. Fortunately, by getting […]

Prepaid and Add vs. Freight Collect: What’s The Difference?

Coming to an agreement on freight terms can be one of the more difficult aspects of forging a new partnership with a buyer. Freight charges can be billed in many ways, two of the more common of which include prepaid and add and freight collect. If you own a small trucking business or you are […]

What Is Business Accounting And What Are Typical Accounting Tasks?

Whether you’re a new entrepreneur getting your first business off the ground or an experienced business owner, navigating company finances can be tough. Without proper organization and insights pertaining to accounting-related tasks, your business’ finances are in jeopardy of being mismanaged. This comprehensive business accounting guide will explore the basics of accounting in business and […]

How To Charge Late Fees On Invoices

All too often, businesses struggle with slow-paying customers. When a client doesn’t submit payment by their invoice due date, it can create serious cash flow problems for your business. If you find your business in this situation, you don’t want to waste too much time chasing down clients for payment. To prevent having to do […]

How Do Truck Drivers Get Paid?

Working as a truck driver can be a liberating experience. But just like any other job, one of the biggest questions to consider is: how are truck drivers paid? As it turns out, there isn’t necessarily a one-size-fits all answer to the question of how do truck drivers get paid. In this article, we’ll break […]

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Quick Pay vs. Factoring

For trucking companies, few things are more important than ensuring you get paid in a timely manner. Maintaining sufficient cash flow for your operations is key for keeping finances in the black. Well-designed trucking invoices can go a long way in helping you get paid quickly, but in times when money is needed as soon […]

Net 15 Payment Terms: What Are They?

Before it comes time to get paid, you’ll first have to create an invoice, and perhaps the most important element of an invoice is the payment terms. Your invoice payment terms tell the customer how soon they need to pay you for the items listed on the invoice, and choosing the right terms can significantly […]

What Is Invoice Reconciliation And Why Is It Important?

Verifying financial records is critical for businesses of all sizes. On average, about 1 in 10 invoices contain an error, whether that be an accounting error, failing to include all necessary product details, or listing inaccurate payment terms. Regardless, just that one inaccurate invoice could prove costly. An important process to help maintain the integrity […]

Locum Tenens Credentialing: What Is It and How Long Does It Take?

Locum tenens practitioners value their roles thanks to the freedom and flexibility they provide. Unlike standard healthcare providers, who work for a specific hospital or facility, locum tenens physicians work with medical staffing agencies to contract with facilities that need temporary staffing help. However, just like full-time physicians must be properly licensed and credentialed, locum […]

What Is Locum Tenens?

One of the common terms you’ll hear in relation to healthcare staffing is “locum tenens.” But what is locum tenens, and what is locum tenens staffing? Understanding what this term means in the medical industry can be mutually beneficial for healthcare staffing agencies, healthcare facilities, and doctors. What Does Locum Tenens Mean? Locum tenens is […]

How to Get Nursing Agency Contracts

It’s no secret that the healthcare industry is facing an employment crisis. In fact, the International Council of Nurses has labeled the nursing shortage a “global health emergency,” as providers struggle to fill critical positions. Nursing staffing agencies play a vital role during this crisis by providing healthcare facilities with qualified nursing professionals to ensure […]

What Is E-Invoicing and How Does It Work?

When it comes to getting paid for the work you do for your clients, few things are more important than having a solid invoicing system in place. An itemized invoice serves as a valuable record of money owed, while also helping set a deadline for payments. Businesses historically sent their invoices through the mail; however, […]

Invoice vs. Receipt – How Are They Different?

Managing your paperwork is one of the less exciting aspects of running a small business — but it is also one of the most important. An efficient invoicing process can make all the difference for your cash flow and can help you achieve your growth goals. However, many small business owners find themselves confused about […]

Purchase Order vs. Invoice – How Are They Different?

It’s not uncommon for people outside of the procurement realm to confuse purchase orders with invoices. Even seasoned business teams mix up the terms from time to time. However, purchase orders (or POs) and invoices are two distinct and essential financial documents, so failing to understand their differences can negatively impact company expenses, documentation, and […]

How to Improve Working Capital

Working capital is vital to any business and is an essential indicator of short-term financial health. Unfortunately, businesses all over the world commonly suffer from a lack of working capital – particularly small businesses – which forces entrepreneurs to get creative to combat this problem. While business owners struggle to come up with adequate capital […]

Get Your Invoices Paid Faster With Construction Factoring

In the construction industry, delayed invoice payments can cause lots of financial trouble. Late payments sometimes mean you need to wait for weeks or even months for customers to pay, creating a frustrating cycle of negative cash flow and mounting debt. To keep growing your construction company and stay competitive, you need cash to purchase […]

Get Your Invoices Paid Faster With Medical Receivables Factoring

Healthcare workers and medical service providers sometimes must wait weeks or months to receive payment. While profit is a secondary motive for many medical service providers, long payment terms can lead to low-cash situations that put your business in a frustrating cycle of negative cash flow and mounting debt. To keep growing your medical practice […]

Get Your Invoices Paid Faster With International Invoice Factoring

In the import and export industry, you often have to wait weeks or even months to get paid. Unfortunately, business expenses often require immediate attention, meaning you may need to sacrifice assets or equity to pay them off. Late customer payments can then cause your company to fall into a cycle of negative cash flow […]

Get Your Invoices Paid Faster With Commission Factoring For Real Estate

Whether you are an individual realtor or a real estate agency, your cash flow is bound to be unpredictable because there may be gaps between property closings. Unfortunately, business expenses have no such gaps, meaning your income may be strained and lead you into a cycle of negative cash flow and mounting debt. To keep […]

Get Your Invoices Paid Faster With Home Healthcare Factoring

As home healthcare providers, it can be tough to juggle back-office operations alongside your medical services. Unfortunately, the situation is made worse by delayed customer payments that often take weeks or even months. Sometimes, delayed customer payments can lead to a frustrating cycle of negative cash flow and mounting debt. To keep your home healthcare […]

Get Your Invoices Paid Faster With Government Contract Factoring

Government contracts are often lucrative and make you a lot of money, but they often take a long time to pay. Lengthy payment cycles and late payments can put your business in a cash crunch, leading to a frustrating cycle of negative cash flow and increasing debt. To keep growing your company and win more […]

Get Your Invoices Paid Faster With Small Business Invoice Factoring

For a small business, delayed invoice payments can be seriously damaging. Late customer payments and thin margins can hurt your finances, not to mention create a frustrating cycle of negative cash flow and mounting debt. To grow your small business and stay competitive among your peers, you need cash to make payments, offer products or […]

Get Your Invoices Paid Faster With Education Provider Factoring

Supplemental education providers often have to wait long for the school district to pay them. Long payment terms that take weeks or even months create cash flow issues leading to a frustrating cycle of negative cash flow and increasing debt. To keep your education provider company in good financial health, you need cash to make […]

Get Your Invoices Paid Faster With Agricultural Factoring

Agricultural businesses are very seasonal by nature, which means you may encounter inconsistent cash flow at certain points throughout the year. Unfortunately, this inconsistent cash flow is worsened by delayed customer payments that create cash crunches, leading to a cycle of negative cash flow and mounting debt. To keep your agricultural company flourishing, you need […]

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Get Your Invoices Paid Faster With Staffing Agency Factoring

In the staffing industry, agencies heavily depend on prompt invoice payments to fulfill weekly payroll obligations. Unfortunately, you often need to wait weeks or even months for customers to pay, creating a cycle of negative cash flow and mounting debt. To grow your staffing agency and compete with other companies, you need cash to make […]

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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 […]

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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 […]

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Merchant Cash Advance Industry Statistics

A merchant cash advance (MCA) is an advance that a business can get based on its credit card sales. Once a lump sum of money has been deposited into your business checking account, the cash advance lender will get a percentage of your future credit card sales until the advance is paid off. In this […]

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Year-End Accounting Checklist for Your Small Business

It’s the end of the year, which means it’s time to dust off your year-end accounting checklist and get to ticking off the boxes. If you’re a new business owner and you don’t have a background in bookkeeping, you may think of this as standard, monotonous housekeeping, but it’s a crucial process for business owners […]

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 and Types of Questions for Staffing Agencies

Staffing and recruitment agencies often ask behavioral questions to candidates to get a better feel of how they would fit in a certain role. With behavioral interview questions, recruiters and staffing agency owners can learn new information that they wouldn’t find on a resume. Behavioral interviewing involves specific questions that get at the heart of […]

Forms, Documents, and Government Requirements for Starting Your Own Staffing Agency

Are you planning to start your own staffing agency? If so, the first thing you should do is learn the requirements and paperwork required to do so, as there are several steps to complete before getting started. Figuring out what you need to start a staffing agency is the first step of hopefully many in […]

8 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 staffing and recruiting industry. According to the American Staffing Association, there are currently about 25,000 staffing agencies, and […]

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 staffing companies understand marketing plans are like building a house. You must […]

Starting a Staffing Agency? Here Are The Staffing Associations You Should Join

Staffing agencies are firms that promote recruitment services. They serve as the foundation for the workforce. They are sometimes called job centers. When there is a vacancy in a company or firm, they can contact a staffing agency to publicize this opening. The agency can carry out the whole recruitment flow, up to selection. It […]

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 recruitment and talent acquisition brings up a lot of […]

How to Raise Money for 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 get a loan. Given that new and existing businesses have different […]

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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. But for businesses with bad credit or a limited credit history, finding funding to cover expenses isn’t so straightforward. That’s where alternative financing options such as invoice factoring come into play. Factoring is […]

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 […]

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Get Your Invoices Paid Faster with Freight Broker Factoring

As a freight broker, you depend heavily on prompt invoice payments to pay operating costs and carriers. However, sometimes you must wait for weeks or even months for payment, causing negative cash flow and mounting debts. To grow your business and be competitive in the market, you need access to cash to keep up with […]

What Is a TWIC Card and How Do You Get One?

The number of forms and requirements for truck drivers can feel overwhelming. And for trucking business owners, knowing which 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 form your drivers shouldn’t forget to apply for – an application for […]

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 and efficiency, and ultimately improving cash flow for trucking companies. In the worst-case scenario, however, the actions of insolvent or unreliable freight brokers can run […]

What is Reverse Factoring (Supply Chain Financing)?

According to a JP Morgan Index Report, the amount of working capital trapped in supply chains rose to 8% last year. We don’t know what this year holds, but you can prevent your company from being part of such stats through Fintech options like reverse factoring. You may have have heard of invoice factoring, or […]

7 Steps To Starting Your Own 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 […]

What Happens to Receivables When You Sell Your Company?

Selling a company isn’t a straightforward task. It involves making a lot of deals and finalizing several things. Luckily, you can structure the sale to suit your position. The calculation of a business’s purchase price incorporates different aspects. Contrary to what some sellers propagate, the value of assets isn’t solely responsible for the purchase price. […]

Advantages and Disadvantages 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. What is an MCA? MCAs give you an advance based […]

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Purchase Order Financing vs. Factoring

Just about every business will run into issues with available funds at some point. While intermittent cash flow problems are normal, particularly for growing businesses, it’s important to stay one step ahead by securing financing. However, what if you run a small business and can’t qualify for a traditional bank loan or line of credit? […]

Differences Between Recourse and 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, one of which is invoice factoring. According to Bloomberg, the global market size of factor finance services is predicted to strike an overwhelming summit of $5,384.0 billion by the […]

Get Your Invoices Paid Faster With Professional Services Factoring

As a professional service provider, you depend on prompt invoice payments to cover operating costs and staffing expenses. Unfortunately, sometimes you have to wait weeks or even months for customer invoices to clear, leading to a cycle of negative cash flow and increasing debt. To keep growing your business and stay competitive in the professional […]

Get Your Invoices Paid Faster With Janitorial Services Factoring

It can be tough to juggle back-office operations like invoice management and payroll alongside cleaning operations and janitorial services. It does not help that some customers prefer to pay with invoices, leading to a frustrating cycle of negative cash flow and mounting debt if they delay payment. To keep growing your janitorial company and stay […]

Get Your Invoices Paid Faster With Food Distributor Factoring

Big and small food and beverage companies often experience cash flow issues due to unpaid invoices. Long payment terms lead to cash crunches, meaning companies usually have to take out loans with high fees to stay productive. To keep your company growing and competitive in an ever-changing food and beverage market, you need cash to […]

Get Your Invoices Paid Faster With Wholesale And Distribution Factoring

The wholesale and distribution industry depends on prompt invoice payments to cover operating costs and product purchases. Because your company is the middleman between manufacturers and retailers, you may experience payment delays for weeks or even months, creating a cycle of negative cash flow and increasing debt. To keep growing your company, reduce stress, and […]

Get Your Invoices Paid Faster With Oilfield Factoring

Intense competition in the American oil and gas industry leads to low prices, meaning you don’t have a large profit margin. It’s made worse by customers taking weeks or even months to pay, resulting in cash crunches that create a frustrating cycle of negative cash flow and increasing debt. To keep growing your oil company […]

Get Your Invoices Paid Faster With Apparel And Clothing Factoring

In the apparel and clothing industry, it can be tough to juggle back office operations, like invoice management and payroll, alongside your creative workflows. With thin margins and seasonal changes, the textiles industry can feel overwhelming, and it doesn’t help that you sometimes need to wait for weeks or even months for customers to pay, […]

What is the Asset-Based Lending Process?

Asset-based lending (ABL) 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 those […]

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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’ […]

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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 […]

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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 […]

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The Importance of Small Business Cash Flow Management: Tips & Strategies

Proper cash flow management is the key to success for many small business owners. Unfortunately, small businesses that do not practice effective cash flow management strategies tend to fail quickly. It’s not uncommon for young businesses to suffer from cash flow problems; in fact, it’s the norm. However, business owners need to focus on minimizing […]

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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 ensures it’s 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. […]

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 Cash on Delivery (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 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 […]

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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 many different providers to choose from – so how do you know which is the best? There are two types of factoring companies: independent factors and bank […]

5 Signs You Should Be Looking for Alternative Financing

Your business is looking for a working capital solution, but you don’t know where to turn. You see banks advertising traditional loan rates and lines of credit, or you consider seeking an investment. That said, you may not be sure about taking on debt or losing equity, or due to certain situations, those means of […]

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5 Reasons Factoring Receivables Makes Sense

There’s nothing more worth celebrating for a business than getting a major new customer or a big new order. It’s an exciting time for everyone in the business as it ramps up production, adds staff, and buys inventory in anticipation of new revenue. However, if it’s a typical business that operates from invoice to invoice, […]