Business Line of Credit – Pros/Cons and Alternatives

Posted by Chris on Aug 28, 2018 in Business Line of Credit, Business Loan, Business Tools, Invoice Factoring, Purchase Order Funding | Comments Off on Business Line of Credit – Pros/Cons and Alternatives |

Business Line of Credit – Pros/Cons and Alternatives

Entering into a business line of credit, particularly for the first time, can be time-consuming. However, once a line is up and running, the business begins to develop and earn a credit profile of its own. Often the terms, conditions, and restrictions imposed by the line of credit begin to be seen, in time, as essential disciplines. Even a journey of a thousand miles begins with a single step. Corporate giants like Proctor & Gamble, IBM, and GM all started a business line of credit at some point. What is Business Lines of Credit? Business...

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Cash Flow for Distributors & Wholesalers

Posted by Chris on Feb 28, 2018 in Invoice Factoring | Comments Off on Cash Flow for Distributors & Wholesalers |

Cash Flow for Distributors & Wholesalers

As a business owner, you may agree that the biggest challenge is maintaining cash flow. You know that cash flow plays a crucial role in any business’ success. If a business is lacking the money to pay suppliers, lenders, and employees, it cannot survive. Distribution companies and wholesalers, which often act as intermediaries between suppliers, manufacturers, and their end-users, usually have significant cash flow needs. Projecting working capital needs is the key. Such projection serves as an accurate forecast for operational the...

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What is the Difference Between a Personal Guarantee and Validity Guarantee?

Posted by Chris on Feb 28, 2018 in Business Tools, Invoice Factoring | Comments Off on What is the Difference Between a Personal Guarantee and Validity Guarantee? |

What is the Difference Between a Personal Guarantee and Validity Guarantee?

It is crucial to understand the difference between a personal guarantee and a validity guarantee. The difference between the two is key to understanding your invoice factoring paperwork. By law, a guarantee is an undertaking to answer for the payment or performance of another person’s debt or obligation in the event of a default by the person primarily responsible for it. Therefore, a guarantee is a promise from your business to your factoring company. This ensures that it will be able to recover the upfront payment they have provided...

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Non-Recourse Invoice Factoring versus Purchase Order Funding

Posted by Chris on Feb 12, 2018 in Business Tools, Invoice Factoring, Non Recourse factoring, Purchase Order Funding | Comments Off on Non-Recourse Invoice Factoring versus Purchase Order Funding |

Non-Recourse Invoice Factoring versus Purchase Order Funding

By the number of calls we receive at BusinessCash.com, there is much confusion about Non-Recourse Invoice Factoring versus Purchase Order Funding. In this article, we will walk you through the steps of how each one them works. We will also tackle which type of companies each financing option applies. What is Non-Recourse Invoice Factoring? Non-Recourse Invoice Factoring is a financial agreement between your business and a factoring company for financing based on accounts receivables against cash. It is available to any company that bills...

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Notice of Assignment: A Step in the Factoring Process

Posted by Chris on Feb 11, 2018 in Business Tools, Invoice Factoring, Non Recourse factoring | Comments Off on Notice of Assignment: A Step in the Factoring Process |

Notice of Assignment: A Step in the Factoring Process

In understanding the Notice of Assignment’s (NOA) both concept and procedure, it is crucial first to understand what does invoice factoring mean. As well as how does it work. Invoice factoring also referred to as Accounts Receivable (AR) factoring. This is a type of debtor finance that grants you funding based on your invoices. It is a financial transaction between a factoring company and your business inducing that you agree to sell your AR to your factor at a discount. After setting an agreement, your factoring company will provide you...

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Invoice Factoring is NOT a Collection Service

Posted by Chris on Oct 24, 2017 in Invoice Factoring | Comments Off on Invoice Factoring is NOT a Collection Service |

Invoice Factoring is NOT a Collection Service

It is common for most businesses, regardless of their lifecycle stage, to seek non-traditional ways when looking for financing options nowadays. Factoring is one of the most popular solutions that companies use as an alternative to bank loans. Factoring also referred to as Account Receivables factoring or Invoice factoring. It can be a great funding solution for any business looking for instant funds to fulfill its strategic goals and/or daily activities. However, the concept of invoice factoring is often misunderstood by businesses; that come...

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How to Choose a Staffing Factoring Company

Posted by Chris on May 24, 2016 in Business Tools, Invoice Factoring, Staffing Factoring | 0 comments |

How to Choose a Staffing Factoring Company

Staffing Factoring is a subset of Invoice Factoring with a twist. When picking the right staffing factoring company for your business, critical questions need to be answered: Staffing expertise: As the owner of a temp staffing agency, you understand the nuances of your business. Workman’s Comp, constant cash flow needs, matching the right person with the right job, proper job classifications- The variables to manage are relentless! You need an accounts receivable financing company who understands the vagaries of your business. In 1998...

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Factoring Fees Explained

Posted by Chris on May 14, 2016 in Business Tools, Invoice Factoring | 0 comments |

Factoring Fees Explained

If you are considering working with a Factor using Invoice Factoring to fund your B2B or B2G sales growth, it is essential to understand the factoring fee structure and cost. Comparing factoring rates can be challenging, with different Factoring companies charging for their services in many ways. What is the Best Transparent Factoring Pricing for You? The cash flow and other factoring benefits need to be compared to your actual cost of funds. The comparison is to see if you are paying genuinely competitive rates for this secured receivable...

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Financing the Scrap Metal Industry

Posted by Chris on Apr 27, 2016 in Invoice Factoring | 1 comment |

Financing the Scrap Metal Industry

Overview of the Scrap Metal Industry The scrap metal industry accounts for up to 90 billion dollars in economic activity in the U.S. Companies often collect scrap metal from a variety of sources, including junk cars, old machinery, appliances, and construction waste, which enable many small companies to enter the industry and cater to a local market. Scrap metal recycling in the U.S. remains a valuable source of supply for developing countries that need both ferrous and nonferrous metals to supplement their development. Over the five years to...

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Invoice Factoring Terminology

Posted by Chris on Jul 10, 2015 in Business Tools, Invoice Factoring | 3 comments |

Invoice Factoring Terminology

Whether you have used Invoice Factoring in the past to fund your working capital needs or are researching to see if the factoring of your company’s invoices is right for you, it is vital to understand Invoice Factoring Terminology so you can be a well-educated business owner. Businesscash.com has created this Glossary for your use. First, what is Invoice factoring? It is the selling or assigning of your unpaid invoices to creditworthy clients to a Factoring Company. Once your invoices are verified and assigned to the Factoring company, a...

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