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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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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Free On Board (FOB): A critical variable for the Purchase Order Financing of any shipped or imported goods

Posted by Chris on Oct 9, 2017 in Manufacturer Financing, Purchase Order Funding | Comments Off on Free On Board (FOB): A critical variable for the Purchase Order Financing of any shipped or imported goods |

Free On Board (FOB): A critical variable for the Purchase Order Financing of any shipped or imported goods

Free On Board is a trade term indicating whom of the seller or the buyer is liable for the goods while being shipped between the two parties. Frequent reference to this is FOB. In most cases, the supplier pays the shipping costs. This includes the insurance costs and covering fees from the production point to the delivery destination. Once delivered, the buyer is responsible for the goods. What does the Free On Board involve? FOB defines the supply chain point where the seller relinquishes ownership of purchased goods and where the buyer...

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How BusinessCash looks at an Invoice Factoring or PO Funding Deal

Posted by Chris on Dec 4, 2014 in Invoice Factoring, Purchase Order Funding | 0 comments |

How BusinessCash looks at an Invoice Factoring or PO Funding Deal

BusinessCash is a forward-thinking invoice factoring and PO funding company.  You or your business’s limited credit is not the determining factor when a solution is devised for your working capital needs. BusinessCash is more concerned about where your business is going instead of where it’s been.  BusinessCash will want to get to know you and your business before funding your deal. Here are some questions that you can expect to answer and some reasons why these are important. BusinessCash will ask you what industry you’re in, who your...

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Purchase Order Funding vs Invoice Factoring

Posted by Chris on Feb 18, 2013 in Business Tools, Invoice Factoring, Purchase Order Funding | 0 comments |

For many business owners, cash flow can be a routine problem. It is no secret that businesses need cash to pay employees, buy supplies, and pay for shipping orders. So, where can a company get the funds it needs? Some try turning to purchase order funding instead of using invoice factoring. This is not always the best solution. Here is why. To begin, we must first understand that these are not the same. What is Invoice Factoring? Invoice factoring can be used by virtually any company that bills its creditworthy customers and clients typically....

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Construction Supply Factoring

Posted by Chris on Dec 4, 2012 in Business Tools, Construction Factoring, Purchase Order Funding, Supplier Financing, Trade Finance, Vendor Guarantee, Working Capital | 0 comments |

Financing and factoring for construction supply companies. Great news, construction in America is coming back. You can finally start growing your business through construction supply factoring. It’s been a tough last few years. Maybe your line of credit has been shrunk or non-existent. Factors can help you finance and advance up to 92% through invoice factoring or purchase order financing. You receive the remaining balance once your customer has paid minus low cost fees. This is crucial to get the materials you need to fulfill orders....

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What is a Supplier or Vendor Assurance Program?

Posted by Chris on Nov 30, 2012 in Inventory Finance, Purchase Order Funding, Supplier Financing, Vendor Guarantee | 0 comments |

What is a Supplier or Vendor Assurance Program?

As a wholesaler, importer, or distributor, many times, you will have an order from a client that is beyond your credit limit with your suppliers. Factors can use their creditworthiness to entice your vendors to release the goods. That way, you can fulfill that large order that you usually would have to pass one. What is a Vendor Guarantee? Vendor guarantees are a product that we offer as an alternative to the Purchase Order Financing. Companies who need capital to purchase goods from their vendor and have it drop shipped directly to their...

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What Are Vendor Guarantees?

Posted by Chris on Sep 17, 2012 in Business Tools, Government Factoring, Purchase Order Funding, Trade Finance | 1 comment |

What Are Vendor Guarantees?

A Vendor Guarantee or Vendor Assurance Program is when you have goods pre-sold, but your credit and time in business will not allow you to buy the products from your supplier. Many times companies use Invoice Factoring Facility alongside a Vendor Assurance Program. For example, you have an order to supply cleaning supplies to the government. Your supplier wants payment in advance or a guarantee that they will receive a payment. An invoice factoring company knowing that they will factor your invoice will guarantee payment to your vendor or...

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Inventory Finance for Business

Posted by Chris on Jul 9, 2012 in Business Tools, Inventory Finance, Purchase Order Funding, Trade Finance | 0 comments |

Inventory Finance for Business

Making money and being able to fund your orders is the most important thing to keep your business running. Searching and being qualified for a line of credit could not have been any easier than to come to businesscash.com. We understand that your time is valuable, and we are here to keep your business running by lending you money backed by your inventory. Recently we helped a distributor of contact lenses with their working capital needs. Like many other companies, they have significant investments in inventory that runs between 3-4 times the...

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How Does PO Funding Work?

Posted by Chris on Jun 23, 2012 in Business Tools, Purchase Order Funding, Trade Finance | 2 comments |

How Does PO Funding Work?

Scenario: After much hard work, you finally secure that large purchase order from a creditworthy client. Congratulations! However, you have nowhere near enough working capital to buy the product to fulfill the order. What can you do? You have heard of Purchase Order financing, but don’t understand how it works, whether you qualify or how to get approval. Also, how does PO Funding differ from Invoice Factoring? First, let’s discuss the mechanics of both tools to get you more working capital. Purchase order financing gives companies...

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