Is Invoice Factoring Worth the Cost?

Posted by Gil Oliva on Fri, Dec 13, 2013 @ 07:41 AM

Factoring accounts receivables has become a valuable option for businesses that simply cannot wait to be paid by slow paying customers, but is it really worth the cost?

Let’s take a quick look at cost. When you decide to factor, your factoring company will set a rate, which is dependent upon several things, some of which are:

  • Sales volume
  • Invoice size
  • The creditworthiness of your customers
  • The number of creditworthy customers
  • The length of your contract with each customer
  • The number of days the invoice is outstanding
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Topics: Cash Flow, Factoring Accounts Receivable, Financing Government Contractors, About Invoice Factoring

Secure the Order with Invoice Factoring or PO Financing

Posted by Aaron Zahedani on Wed, Dec 11, 2013 @ 07:00 AM

How can I fulfill my large orders when cash flow is tight?

The dilemma for many manufacturers is the lack of available cash flow to buy raw materials in order to complete large orders. It is also an issue for distributors or wholesalers lacking funds to pay manufacturers to produce goods.

Lack of available funds can mean losing valuable business you know you are capable of completing. It could also seriously jeopardize future orders with existing customers. Purchase order funding and invoice factoring can both be alternative financing options worth considering.

So what is the difference?

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Topics: Alternative Financing, Cash Flow Solution, About Invoice Factoring, Purchase Order Financing, Financing Government Contractors

Invoice Factoring Best Practices – Credit Ratings

Posted by Gil Oliva on Fri, Dec 06, 2013 @ 07:15 AM

Do you ever offer terms to your customers without checking their commercial credit rating first?

The credit of any business can easily be checked, and it should be your company policy to make sure this happens with every customer. The credit rating a company is given takes into consideration the likelihood it will meet its financial obligations. In other words, whether or not you will receive payment on your accounts receivable in a timely manner. Obviously, if their credit rating is bad, you may want to question whether it is worth doing business with them at all.

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Topics: The Benefits of Invoice Factoring, About Invoice Factoring, Financing Government Contractors

3 Common Invoice Factoring Issues and How to Resolve Them

Posted by Gil Oliva on Wed, Dec 04, 2013 @ 08:40 AM

You are set up with a factoring company; you have been successfully receiving funding on your working capital, and were not expecting any difficulties. Your funding has been delayed - what happened?

 

Our 3 common invoice factoring issues will explain why sometimes things don’t proceed according to plan, and how you can help prevent these issues from arising. These vital pointers will affect your ability to receive funding from your factor, so it is worth bearing all of these situations in mind.

  •  The invoice is sent, but the work has not been completed
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Topics: Financing Government Contractors, About Invoice Factoring

Is Your Company Ready for the Holiday Rush? - 3 Tips to Seasonal Success

Posted by Aaron Zahedani on Wed, Nov 27, 2013 @ 07:15 AM

Is your business prepared for the seasonal rush?  We are rapidly heading into the flurry of holiday demand. Careful preparation holds the key to success.

Seasonal activities mean a whole slew of extra demands on your business, whether stocking up on inventory, managing your current employees, hiring extra staff or effectively managing your cash flow, the period of extra demand holds the promise of great opportunity for your company as long as it is handled effectively.

1.                  Are you holding the right amount in inventory? 

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Topics: Manufacturing and Distribution Financing, Cash Flow, The Benefits of Invoice Factoring, Financing Government Contractors

Financing for the Oil and Gas Industry

Posted by Aaron Zahedani on Wed, Nov 20, 2013 @ 07:00 AM

Are you an oilfield goods or services contractor looking for faster payment on your accounts receivables?  A specialist-factoring company, who understands the issues of your specific industry, can help to find an answer.

There is a buzz about factoring companies who specialize in certain industries. Invoice financing companies who offer industry solutions do so because they understand the process and have experience in specialist fields.

If you supply products or services to the oil and gas industry you will already know some of the issues you face when it comes to invoice collection. Similar to the government space, oil and gas customers are generally extremely reliable about payment, and have excellent commercial credit, but often require that their suppliers extend their invoice payment terms to 30 days at the minimum, but up to 60 or even 90 days.

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Topics: Financing for the Oil and Gas industry, Financing Government Contractors, About Invoice Factoring

It pays to be Honest in a Cash Flow Crisis

Posted by Gil Oliva on Fri, Nov 15, 2013 @ 07:30 AM

If you think omitting information on your invoice factoring application will go unnoticed, think again!

While factoring receivables is a great answer for many companies who are thriving, more often than not a search for accounts receivable financing is driven by a cash flow crisis. 

It may be that you have some outstanding substantial invoices but you are in a cash flow meltdown, in which case factoring may be a perfect fit for your company. In this instance, even if you have a few issues to contend with, a factor will more than likely be able to help. However, it is always worth adopting cash flow best practices to try and avoid getting to the sink or swim period of accounts receivable collection.

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Topics: Cash Flow Solution, Financing Government Contractors, About Invoice Factoring

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