Is Factoring Expensive?

Posted by on Aug 24, 2012 in AR Funding, Business Tools, Invoice Factoring, Spot Factoring | 1 comment

Is Factoring Expensive? This is a great question and the answer is…. Maybe, if not used correctly. It can be expensive if not utilized correctly or it can mean the death of your business if factoring is not available. Death would seem to be the highest expense possible. How do you use Invoice Factoring correctly? You use it to grow your business or save your business. Versus a line of credit from a traditional lender where the amount of money you can access is based on your...

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How to Factor?

Posted by on Jun 28, 2012 in Business Tools, Invoice Factoring, Working Capital | 0 comments

How do you Factor your Invoices? What does it even mean to “Factor”? If you sell your products or services to credit worthy commercial or government customers and you give them terms of 20-90 days to pay the invoice you generated then Invoice Factoring could meet your working capital needs. The Beauty of Factoring is: We can advance you up to 92% cash Give you a Free Credit Department! We love Start Up Companies Personal Credit Problems are not an Issue Fast and easy...

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What is Factoring?

Posted by on Jun 12, 2012 in Business Tools, Invoice Factoring, Non Recourse factoring, Non-Recourse Accounts Receivable Factoring | 0 comments

Invoice Factoring is a financial transaction whereby a business sells its accounts receivable (invoices) to an Invoice Factoring Company at a slight discount. The Factor provides financing to the seller of the accounts in the form of a cash “advance,” often 75-92% of the purchase price of the accounts, with the balance of the purchase price being paid, net of the factor’s discount fee (commission) and any other charges, upon collection. Factoring differs from a bank loan in...

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Bank Financing versus Invoice Factoring

Posted by on May 31, 2012 in Business Tools, Invoice Factoring, Purchase Order Funding | 0 comments

What is the difference between a line of credit from a bank and Invoice Factoring from a Factoring Company? Well, let us first review how a bank would look at you as a potential loan client. A bank will paint a complex picture of you and your company using the “5 C’s of Credit“. What are the Five C’s of Credit? Character, Capacity, Capital, Conditions, and Collateral. Click on the link for an excellent description. If you can meet a bank’s many requirements and...

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How to best Utilize an Invoice Factoring Company

Posted by on May 18, 2012 in Business Tools, Invoice Factoring, Purchase Order Funding | 2 comments

Why hide from the facts? Working Capital from an Invoice Factoring Company is more expensive than a traditional line of credit from a bank. Of course, you might not qualify for bank financing or bank financing could be woefully short of your capital needs. However, working capital is just a business tool to be used and like all tools must be used correctly. Let us look at how to get the most out of your Invoice Factoring Company partner: Use Your New Credit Department: One of the best tools...

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I want to “Factor my Order”

Posted by on May 6, 2012 in Business Tools, Invoice Factoring, Purchase Order Funding | 1 comment

My good friend at Wells Fargo, Roger Welker made this comment after my last blog: “Invoice Factoring versus Purchase Order Funding” – he gets calls all the time asking if his company can “Factor my Order”. Well, the short answers are no, but let’s look at the reasons why. First, you get an order to install fiber optic cable or supply temp staffing to a large creditworthy client. Congratulations! But you realize you don’t have the money to start the job...

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