Understanding Factoring Rates

Posted by Chris on Jan 24, 2016 in Alternative Financing, AR Funding, Discount Factoring, Government Factoring, Staffing Factoring | 0 comments |

Understanding Factoring Rates

Many business owners attempt to compare APR interest rates to invoice factoring rates. The problem is two-fold. The best factoring company’s rates include Accounts Receivable Management, Credit Services, and Credit Protection; and A bank only helps the most creditworthy company with typically three years of proven profitability. Here is a simplified explanation of how factoring works and what it would cost you. What are Possible Factoring Fees Based on Time Frame? Length of Time for Payment Invoice Factoring Rate 20 days 1.00% 30...

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Rapid Growth Funding through Non-Recourse Accounts Receivable Financing

Posted by Chris on Nov 21, 2015 in AR Funding, Business Tools, Non-Recourse Accounts Receivable Factoring | 1 comment |

Rapid Growth Funding through Non-Recourse Accounts Receivable Financing

Steady or fast growth is the primary goal of any young business owner. When and if those growth opportunities arise, do you have the resources in place to move forward? It may not seem like it, but growing too rapidly can be a death blow to a young company. Most young companies lack the experience, planning ability, and insight to properly navigate rapid growth. As you know, cash is king, and most start-ups are not flush with working capital. You may currently have a line of credit with a bank, but is it enough? Your growing company must have...

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Bank Factoring

Posted by Chris on Jan 22, 2013 in Alternative Financing, AR Funding, Working Capital | 0 comments |

Bank Factoring

The Benefits of Outsourcing Bank Factoring The nature of bank lending practices often puts bankers in the position of having to turn down a business loan application – even from a current client – because the client’s balance sheet is overextended, it does not have any further available collateral to increase its line of credit, or for other reasons. Often, bank clients may wish to use invoice or receivables factoring as a way to raise additional cash. Businesses may use this for working capital, business expansion, or investment in new...

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Is Factoring Expensive?

Posted by Chris 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. Invoice Factoring is based on the assets you can generate, i.e., Invoices. It is different from a traditional lender where the amount of money you can access is based on your company’s existing...

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What is AR Factoring?

Posted by Chris on Jun 1, 2012 in AR Funding, Business Tools, Non-Recourse Accounts Receivable Factoring | 0 comments |

Accounts Receivable Factoring (AR Factoring) is the selling of your Invoices to a Factoring Company. It is not a loan like a line of credit from a bank but the sale of an asset (Your Invoices) to a third party Invoice Factoring Company. Many terms and abbreviations are used to describe the same transaction, such as AR Factoring, AR Funding, Accounts Receivable Financing, Invoice Factoring, etc. However, they all mean the same thing. The option of factoring is excellent because it ends the practice of waiting 30-60 days before receiving...

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