If your business is steadily growing and you’ve just landed some big jobs, chances are you need liquid capital. You know that future contracts will shoot your profits through the roof. The only problem is that the jobs are a huge financial investment, and you won’t survive waiting for the payout. How do you keep your business running while you’re waiting on outstanding bills? Use an accounts receivable factoring company.
Continue Reading »
In today’s modern economic climate, how does a business get the extra cash it needs to survive? Business loans are often difficult to obtain, and you need capital to survive and expand. One proven method to get more cash to invest in your business has been around for thousands of years and is still practiced today. Known as accounts receivable factoring, it is a quick, low-risk way to keep your business moving by giving your business the extra financial boost when needed.
In order to help small businesses, the government sometimes offers business loans. Many of these loans don’t have to be repaid for a year or more. This is one way to get a healthy dose of capital, but not everyone qualifies. Another way is to turn your old invoices into cash using accounts receivable factoring.
Continue Reading »
It is important to remember that factoring companies are not all the same. Distinguishing charateristics and levels of customer service will help you decide which company is the best match for your business. Of course, the decision is not always clear cut. The following list of tips will make your decision easeier as you choose the right accounts receivable factoring company to meet your needs.
First, determine whether your business is looking for recourse or non-recourse factoring. This important factor will determine the level of risk your business takes. For example, a factor that conducts strictly recourse transactions will take nearly any accounts receivable off your hands. They will attempt to claim the debt, but if the debt isn’t repaid within a certain time period, you must repay the advance plus the fee. The main advantage to this type of transaction is that the company takes nearly any debt off your hands, but there is a level of financial risk to your business.
Continue Reading »
Factoring is the selling of accounts receivables to an outside company, also known as a factor. These debts are sold at a percentage of their value, usually between 65 and 90 percent. The factor then collects the rest of the debt, paying you the remainder minus a small fee. Factoring is a time-tested way of getting money for your business quickly. With proper business strategy, it’s a great technique to keep your business profitable.
One easy way to make money with accounts receivables factoring is by reinvesting the returns into other aspects of your business. Suppose that you need to purchase a big ticket item but don’t have the capital immediately available. A factor company provides the quick burst of cash you need to make that item yours. Maybe you want to take advantage of time-sensitive supplier discounts? This is also a great time to consider factoring as an option.
Continue Reading »