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 […]
Before beginning a financing relationship with a funding partner, understand the steps required to terminate the relationship if needed before the end of the term. Complex structure and lengthy verbiage make contracts difficult to decipher, particularly payroll funding agreements. Transparency and clarity are “must haves” in your payroll funding relationship. Why You May Want to […]
When businesses factor their invoices, 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 […]
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 […]
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 […]
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 […]
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 […]
Cash flow is something most small businesses struggle with. Around 80% of small businesses have a hard time producing enough cash flow in their first five years. Sometimes you have the customers, but expenses are due, and you don’t have time to wait for unpaid invoices. Invoice discounting companies offer loans of up to 95% […]
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 […]
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: […]
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, […]
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 […]
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 […]
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. […]
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 […]
Small business owners carry a lot of responsibility on their backs. From hiring and firing, to growth and crisis management. As any owner would testify, things aren’t as easy as they look, particularly when you’re talking about cash flow. Cash flow, or working capital, is critical to any business. In order to stay on top […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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, […]
The Paycheck Protection Program (PPP) offers much-needed relief for small business owners struggling to stay on top of costs during the pandemic. Unfortunately, not every entrepreneur managed to secure one of these loans. Hasty implementation and high demand for funds led to system crashes, processing delays, and other complications. If you fail to benefit, there […]
If you’re having trouble with cash flow in your business, one option that can provide you with an immediate influx of money is to sell your accounts receivable to a financing company. This process is also known as factoring, and it works primarily to improve your company’s cash flow and liquidity. In factoring, you sell […]
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. […]
Alternative lending refers to any type of financing outside of traditional bank loans. For a number of reasons, a business would either choose, or be unable, to secure traditional financing with a bank. Things like poor credit, limited operating history, or a lack of hard assets can make a business unfit for most bank loans. […]
For many companies Accounts Receivable collection can at best be described as a chore and at worst as an anxiety-inducing experience where one large delinquent customer can put their own business in jeopardy. As a bank that offers factoring, or Accounts Receivable financing, The Southern Bank has a wealth of experience optimizing accounts receivable collection […]
What do agencies, staffing companies, manufacturers, consultants and other industries all have in common? In addition to supplying products and services to Fortune 500 companies, they’re all subject to the same strain caused by one of the latest trends in corporate finance – longer payment terms. More often than not, cash flow problems and extended […]
Staffing companies face unique working capital challenges. Nearly all staffing firms face cash crunches. This is primarily the result of the payment terms that the staffing firm’s customers require at the outset of a relationship. However, long payment terms in itself is not necessarily the issue. Nor is it the cash intensive nature of supplying […]
If you are like most small business owners, securing financing often involves emotions ranging from uncertainty to frustration as you navigate the alternatives. In addition to your daily job responsibilities, the demands of evaluating borrowing options can be stressful and overwhelming. This straightforward buyer’s guide serves as a starting point to help you with the […]
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 for manufacturing companies. Below we look […]
Running a successful staffing company requires managing multiple priorities, relationships and partnerships. This balance often presents a tough challenge even for seasoned staffing professionals. Staffing companies that find the right employees and reliable partners stand to enjoy greater profitability and growth. In this post, we’ll address key points related to financing for staffing companies: industry […]
