Does your business need fast cash? Funding options, such as traditional loans, can take days, weeks, or even months to secure, leaving you with significant cash flow gaps. Fortunately, there are alternatives to get quick access to working capital. Invoice factoring and merchant cash advances (MCAs) are popular solutions, but the way they work—and how […]
Cash flow is a must for any company, but most small business owners don’t have thousands of dollars in their bank accounts. Fortunately, when your business needs working capital, there’s no shortage of financing options. Two of the most common financing methods for businesses in need are accounts receivable factoring and inventory financing. Both options […]
High-risk borrowers and startups with a lack of credit often struggle to qualify for traditional bank loans that meet their business needs. Instead, many business owners opt for either asset-based lending or invoice factoring. These two funding solutions are more attainable for all types of businesses. While asset-based lending and factoring both offer a way […]
Once you’ve determined invoice factoring is the optimal funding solution for your company, the next step is to find a top-rated factoring company. But with so many factoring companies out there, how do you choose the best one? When searching for a funding provider, it’s important to target companies with a good reputation. To help […]
There are not many more consequential decisions a business owner can make than selecting the right funding provider. The difference between a good provider and a bad provider can truly make or break a business. That’s why choosing the right staffing agency factoring company to partner with is so critical. If you’re reading this, there’s […]
For many business owners – and owner-operators in particular – one of the biggest challenges is figuring out how to finance your business and improve cash flow. Quite often, trucking companies struggle to have clients pay invoices in a timely manner, which can lead to major financial difficulties in keeping up with their ongoing expenses. […]
Few things are more important for a business than ensuring it has enough funding for its operations, evidenced by financing difficulties being cited as the top reason why businesses fail. To maintain financial health and improve cash flow, business owners often turn to secondary sources to obtain additional funding, often through what is called non-dilutive […]
The stereotype that every lending option comes with endless paperwork can be off-putting to borrowers seeking out financing, but fortunately, several lending options require very little paperwork during the application process. These are referred to as “no-doc business loans.” You may have heard of no-doc business loans before, but you might not be familiar with […]
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 staying cash flow positive. But the trucking industry is one of slim margins. Even the most well-prepared, successful trucking business owners will have periods of negative cash flow […]
Security guard companies are unique. Unlike many industries in which assets lie in the name of equipment, land, or other physical resources, security guard companies’ biggest assets are their people. This makes financing security guard companies particularly challenging for two reasons. First, most traditional bank loans are unattainable without significant collateral, and a security guard […]
While the telecommunication business can be lucrative, running your own telecom business isn’t a simple, or cheap, undertaking. Between obtaining licenses and permits, paying fees to the FCC, and making necessary business-related investments, you will likely – at some point – be faced with cash flow challenges that could put important growth goals in jeopardy. […]
Starting a business is an exciting yet demanding venture with inevitable challenges that get in the way of what business owners wish could be an entirely smooth process. However, knowing what roadblocks you could face beforehand to avoid being taken by surprise will help you overcome these obstacles. Many common stressors small business owners struggle […]
Non-notification factoring is used by businesses to improve accounts receivable cash flow as an alternative to financing methods such as traditional factoring, taking out a loan, or applying for a line of credit. The ultimate goal of non-notification factoring is the same as that of traditional invoice factoring – to increase working capital. However, a […]
For business owners, managing cash flow wisely is a pivotal factor in determining long-term success, particularly for small business owners. Given 60% of small businesses struggle with cash flow, it is not a unique problem to have, and owners often look to third parties to assist with these struggles. Two of the most common options […]
For several years, invoice factoring has been closing the small business financing gap. Sometimes, however, small businesses need more funding opportunities to sustain cash flow, and they are curious to know if they can receive funds from different factoring companies at the same time. We know invoice factoring is a great financing alternative, and you […]
Unpaid invoices hinder the day-to-day operations of small businesses across the country, as only 55% of B2B invoices are paid on time. While 54% of small businesses have come to terms with late invoice payment being a norm, this doesn’t have to be the case for your company. Many business owners have found a way […]
When it comes to non-traditional financing solutions, invoice financing and factoring are common alternatives to transforming your accounts receivables for quick funding. Both options are similar as they provide a cash advance for business owners to increase working capital and scale their growth. However, some differences exist between them, and in this article, you’ll explore […]
Interested in invoice factoring but are worried about the costs associated with it? We know that the unknowns of financing can be stressful, so we’ve put together an invoice factoring calculator to help you estimate your cash advances, factoring fees, and cash due to you at the end of the factoring process. Try the calculator […]
It is not uncommon for businesses to struggle while working on net 30 or net 60 payment terms with clients. Since obtaining a loan from banks is not easy for most small business owners, they often turn to invoice factoring. However, like every other financing option, invoice factoring does not come without a few risks. […]
Invoice factoring is not a new type of financing, but it is still a new concept to many business owners. Invoice factoring is an alternative financing solution in which a company sells its outstanding invoices to a third-party “factor” (also referred to as a “factoring company“) for a discounted rate in return for a cash […]
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 […]
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 […]
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 […]
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 […]
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 […]
Government contracts are often lucrative and can make you a lot of money, but they’re notorious for forcing providers to wait a long time to get paid. If you’ve worked on government contracts in the past this comes as no surprise. Lengthy payment cycles and late payments can put your business in a cash crunch, […]
For small businesses, one of the most common growth deterrents are slow-paying customers. Late customer payments lead to margins thinning, which can create a frustrating cycle of negative cash flow with mounting debt. To grow your small business and stay competitive among your peers, you need to be able to afford to take on new […]
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 […]
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 […]
Staffing agencies heavily depend on prompt client invoice payments to fulfill weekly or bi-weekly payroll obligations. If invoices payments are drawn out or not paid on-time, it can drastically affect a staffing company’s operations. For this reason, one of the most popular financing methods in this industry is staffing invoice factoring. If you’re not an […]
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 […]
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 […]
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 payment term options, because you might be missing out on terms that are more suitable for both your business and […]
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 […]
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 […]
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 […]
Because of how common cash flow problems are for freight companies, many trucking business owners turn to freight factoring. This alternative financing solution is aimed to improve cash flow and working capital, acting as a tool to drive growth. After learning about what freight factoring is, the next step is to find out how much […]
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 […]
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 […]
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? […]
In order to survive in today’s competitive market and ultimately generate a competitive edge, a company must weigh the short-term and long-term implications of various funding solutions, one of which is invoice factoring. Factoring can prove a great way for small business owners to improve cash flow. But before partnering with a factoring company, there […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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, […]
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 […]
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 […]
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 involve third-party companies funding business’s outstanding invoices […]
One of the most common issues facing small businesses are cash flow problems. Whether it’s caused by customers not paying on time or a reduction in sales, a lack of cash on hand can derail your company’s progress. Thankfully, you have financing options to keep your business rolling, regardless of your business’s size, age, or […]
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 […]
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 […]
Considering invoice factoring as a cash flow solution for your business? With so many options, choosing a 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 research, […]
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 […]
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, […]
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 has become an extremely popular financing tool for small, growing, and new businesses to keep cash flow steady. But like any funding solution, factoring comes with its pros and cons. Before partnering with a factoring company, you’ll want to know what you’re getting into. While factoring is generally considered low risk compared to […]
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 […]
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, […]
A factoring relationship can be exciting in the beginning as your company’s cash flow is improved and you have a process in place to efficiently factor your receivables. However, over time you may find that your existing provider isn’t the right fit for your company, whether it’s because of customer service issues, inability to factor […]
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? Perhaps you might not even fully understand what an NOA is. Let’s address these questions to clarify what a factoring notice of assignment […]
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: […]
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