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 […]
Choosing the Best Financing Option for a Business 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 […]
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 that need capital to improve cash flow as only about 6% of invoices are paid within 30 days. These unpaid invoices do not only affect the businesses in question but also impact the economy, making up 5% of America’s GDP and totaling $825 billion. And while […]
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 with the net 30 – 60 day payment terms of clients. Obtaining a loan from banks is not easy and so, business owners often turn to invoice factoring. After all, they need funds to run their businesses. However, like every other financial decision, invoice factoring is not […]
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 […]
As a transportation operator, juggling back-office operations and transport management can be tough. Worse still, customers often take weeks or even months to pay, creating cash crunches that lead to a frustrating cycle of negative cash flow and increasing debt. To keep growing your transportation business and stay competitive in the industry, you need cash […]
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 do not wait, and you may need to sacrifice assets or equity to pay them off. Late customer payments cause your company to fall into a cycle of negative cash flow and mounting debt. […]
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 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 […]
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 […]
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 […]
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 […]
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, 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 […]
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. 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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 and obtain funding without a loan. Debt factoring is based on selling accounts receivables to an entity that pays a fee for those accounts receivables. The third-party […]
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 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 […]
Spot factoring, also known as single invoice factoring, is a way for companies 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 than […]
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 […]
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 […]
The freight and trucking industry heavily depends on prompt invoice payments to cover operating costs. Unfortunately, companies may need to wait weeks or even months for customers to pay, creating a cycle of negative cash flow and mounting debt. To keep your trucking company competitive and growing, you need cash to pay expenses, maintain equipment, […]
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 […]
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 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 […]
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. […]
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. Two of the more popular options – invoice factoring and invoice discounting – are often mistaken for each […]
An increasing number of businesses are discovering the advantages of invoice factoring, the biggest of which is quick access to capital. Anyone who has applied for a business loan through a bank understands how cumbersome and lengthy the process can be, often taking weeks for approval. Compare that to three or four business days for […]
Invoice factoring can help business owners fill the gap between when an invoice is created and when the customer actually pays. 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 does […]
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 […]
In the manufacturing industry, achieving and maintaining consistent cash flow is one of your most significant challenges because you need prompt invoice payments to achieve it. Unfortunately, sometimes you need to wait weeks or even months for payment due to long invoice payment terms, leading to a cycle of negative cash flow and mounting debt. […]
Every business needs funding at some point – some need it just to get started, others need it to meet payroll, and others still need it invest in marketing or cover other expenses. Self-funding, crowdfunding, and borrowing from friends and family are common starting places when you find yourself needing to fund your business, but […]
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 (AR) financing interchangeably. […]
As with any financing relationship, make it a priority to understand your exit strategy options with your factoring company. Before you enter into the relationship, ensure you know the steps to take and associated penalties in case you need to break the contract. When is the Right Time to Switch Factoring Companies? Switching your financing […]
If you’re a business owner considering invoice factoring, the Notice of Assignment (NOA) may cause you some concern. What will my customers think? Why is it necessary? Can we skip sending it? Let’s address these questions to clarify what the NOA covers and put to rest any lingering apprehension. What is a Factoring Notice of […]
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: […]
