Invoice Factoring

Benefits of Freight Factoring

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. […]

What Is Non-Dilutive Funding?

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 […]

Guide To No-Doc Business Loans: How To Choose The Right Loan For Your Business

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 […]

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 […]

Get Your Invoices Paid Faster with Security Guard Factoring

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 […]

Get Your Invoices Paid Faster With Telecom Factoring

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. […]

What is B2B Factoring?

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 […]

What is Non-Notification Factoring and How Does it Work?

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 […]

Invoice Factoring vs. Bank Line of Credit

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 […]

Can You Have More Than One Invoice Factoring Company?

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 […]

Can I Sell My Unpaid Invoices for Cash?

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 […]

Invoice Factoring vs. Invoice Financing: What’s the Difference?

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 […]

Invoice Factoring Calculator

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 […]

What Are The Risks Of Invoice Factoring (And How To Reduce Them)?

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. […]

Why Do Companies Use Invoice Factoring?

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 […]

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 […]

What Is Government Contract Factoring and How Does It Work?

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 […]

Invoice Factoring for Staffing Companies: What Is it and How Does it Work?

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 […]

Sample Factoring Agreement – What Does One Look Like?

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 […]

Invoice Factoring for QuickBooks Guide

You want to grow your business, but you’re finding it difficult to get the cash flow that you need. You’ve tried asking for a loan or getting an additional credit card, but the banks say you don’t have enough collateral or enough credit history. What do you do? Invoice factoring can be a solution to […]

Invoice Payment Terms: What Are They and Which Should You Work On?

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 options regarding payment terms, because you might be missing out on an option that’s more suitable for both your business […]

What Is Working Capital Financing?

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 […]

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 […]

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 […]

Average Trucking Invoice Factoring Rates

Cash flow is the beating heart of every company, so when negative cash flow permeates your trucking business, you feel the consequences. Because of the threats posed by cash flow problems, many trucking business owners turn to invoice factoring (or “freight factoring” as it’s known in the industry), an alternative financing solution aimed to negate […]

How to Finance a Trucking Business

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

What You Should Know About Taxes and Factoring

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 […]

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 […]

What is Debt Factoring?

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 […]

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, […]

How to Record Invoice Factoring Transactions

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 […]

What is Spot Factoring?

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 […]

What Is Non-Recourse Factoring?

Finance companies generally offer two kinds of invoice factoring, recourse, and non-recourse factoring. In the case of non-recourse factoring, the factor (a third party who buys a company’s invoices for services rendered to give them the cash needed upfront) will assume the loss of unpaid invoices to end customer insolvency. This guide explores: Invoice factoring […]

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 […]

Accounts Receivable Factoring

One of the most common issues facing any business are cash flow delays. Whether your customers aren’t paying on time or you’re facing massive growth opportunities, a lack of cash on hand can derail your company’s progress. Thankfully, you have options to keep your business rolling. Accounts receivable factoring is one financing possibility that could […]

What is 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 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 […]

How to Choose a Factoring Company

Considering invoice factoring as a cash flow solution for your business? With so many options, choosing the best 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 […]

Why You Shouldn’t Always Choose the Cheapest Factoring Company

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 […]

Why Accounts Receivable Factoring Isn’t Really a Loan

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 […]

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, […]

Does Invoice Factoring Affect My Credit Score?

Successful business owners know how important their business credit score is. Building and maintaining a solid credit score is crucial for businesses as it can impact their ability to access capital as well as their credibility with vendors and customers. However, as less established businesses work to build their credit score, their access to traditional […]

Get Your Invoices Paid Faster With Startup Factoring

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 […]

Invoice Factoring and Invoice Discounting: What’s the Difference?

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 […]

The Invoice Factoring Approval Process

An increasing number of businesses are discovering the advantages of invoice factoring, the biggest of which is quick access to capital. Anyone who has applied for a business loan through a bank understands how cumbersome and lengthy the process can be, often taking weeks for approval. Compare that to three or four business days for […]

Invoice Factoring Advantages and Disadvantages

Invoice factoring can help business owners fill the gap between when an invoice is created and when the customer actually pays. Obtaining cash to invest back into your company sooner rather than later is one of the main advantages of factoring, though you’ll want to be aware of potential disadvantages of factoring as well, such […]

Invoice Factoring Myths and Misconceptions

All growing businesses reach a critical juncture when they need access to capital to get to the next level. Whether it’s for hiring more staff, expanding operations, buying inventory, or taking on new customers, small businesses often come up short due to the lag between growing sales and the cash flow it creates. Factoring invoices […]

Get Your Invoices Paid Faster With Consulting Firm Factoring

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 […]

Get Your Invoices Paid Faster With Manufacturing Factoring

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 […]

Invoice Factoring vs. Bank Loans

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 […]

Is Invoice Factoring the Same as AR Financing?

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, […]

Switching Factoring Companies

As with any financing relationship, make it a priority to understand your exit strategy options with your factoring company. Before you enter into the relationship, ensure you know the steps to take and associated penalties in case you need to break the contract. When is the Right Time to Switch Factoring Companies? Switching your financing […]

What is a Notice of Assignment?

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 […]

Is Invoice Factoring Float Costing You?

Every invoice factoring company structures a deal a little differently, so it’s often difficult to compare proposals. By focusing on a few key aspects of invoice factoring agreements, we aim to help business owners make better, more informed financing decisions. We’ll be taking a closer look at four important areas of an invoice factoring agreement: […]