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 according to the U.S. Bureau of Labor Statistics, 20 percent of new businesses fail during their first two years of opening, 45 percent during their first five years, and 65 percent during their first decade. Whether […]
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 […]
Freight broker factoring is an excellent way to improve the cash flow of your trucking business. Freight brokers assist shippers by helping them find carriers to haul their freight loads. They serve as the intermediary, communicating with both shippers and carriers to ensure the timely delivery of a load. A freight broker’s profit is the […]
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. Debt factoring is based on selling accounts receivables to an entity that pays a fee for those accounts receivables. The third-party entity offers the seller a percentage […]
If you own and operate a professional services business, you’re probably all too familiar with cash flow issues. Your business may have strong receivables and reliable customers, but they’re still likely paying on terms of 30-90 days. This means your business is stuck waiting one to three months to receive payment on work completed today, […]
Janitorial services companies offer an extremely valuable service to a wide range of customers. However, they often struggle with cash flow issues because of payment delays, even if they have customers with strong payment histories and solid reputations. That’s because they’re stuck with 30-90 day payment terms, meaning that the work they complete today may […]
Food and beverage companies are no strangers to cash flow issues. Distributors, caterers, manufacturers and resellers all face one common problem: waiting on unpaid invoices. With long payment terms of 30-90 days, while trying to keep up with overhead and payroll expenses, food and beverage companies can easily get stuck, forcing them to turn to […]
Some industries are simply more suited for invoice factoring than others. The wholesale and distribution industry has been factoring receivables for hundreds of years, so let’s find out why that’s the case. It’s a natural fit for wholesalers and distributors, as they frequently struggle with cash flow. As the in-between for manufacturers and retailers or […]
In the United States, the oil and gas industry is in a unique situation. On one hand, it is experiencing massive increases in production and demand from today’s new technological and innovative advancements, leading to increased margins. However, intense competition within a dense market of suppliers causes low prices, often resulting in a cash crunch […]
The apparel and textile industry in the United States faces its fair share of unique problems, much like other manufacturing industries. They’re often used to long payment terms and cash flow issues. This can be a major stressor on a growing, or established apparel business. That leaves many looking toward alternative cash flow financing options. […]
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 is a way for companies to use a third party to handle single big invoices. It differs from traditional invoice factoring relationships because of the order’s size and can be a financially intelligent way for a company to ensure that single invoices get paid. It tends to be more expensive than traditional 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 […]
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 […]
Freight companies take a lot of work, and often see gaps in income while waiting for clients to settle up. For many companies, those interruptions in cash flow cause big problems. One possible solution is freight factoring. As an alternate financing option, factoring can help you maintain seamless business operations by streamlining your invoices and […]
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 […]
Anyone who has started a business understands the immense challenges of getting it to the next level where it can grow and prosper. The central challenge for startup businesses is having sufficient working capital on hand to manage operations and pursue growth opportunities. In fact, the working capital requirements of startups can actually become a […]
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 are […]
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 […]
If you own or manage a consulting firm, you know that cash flow can be a problem. You incur unusually heavy upfront costs—to hire the best professionals and ensure they receive the ongoing training they need to remain up-to-date. What’s the Main Cause of The Problem? However, the very clients you work so hard to […]
Earning a top position among manufacturing companies is becoming increasingly difficult due to the rapidly changing landscape of the manufacturing industry. Amid the many challenges facing manufacturers today are employee skills gaps, cash flow hindrances, and keeping up with innovation. Here at altLINE, our team specializes in invoice factoring solutions for manufacturing companies. Below we […]
The comparison of factoring vs bank loans comes up often among businesses looking to access working capital. As a factoring bank, altLINE by The Southern Bank offers a unique perspective on answering this question. We provide businesses in all industries and sizes a broad range of commercial lending options. These include invoice factoring and traditional […]
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 financing interchangeably. In […]
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: […]
