Recourse vs Non-Recourse Factoring
There is a great deal of information on the internet about recourse vs. non-recourse factoring. Much of it is wrong. When choosing a Factoring Company, you should understand what a factor is offering you. What is Recourse Factoring? Recourse Factoring means that if the invoice is not paid by your client by a certain date, the Factoring Company can charge that invoice back to you or you can replace that invoice with another good invoice. In some ways, recourse factoring is similar to a line of credit from a bank with a borrowing base as one of...
read moreWhat is Discount Factoring?
Discount Factoring, also known as recourse factoring, provides your business with versatile and immediate cash that will give you the funds to grow, restructure, take advantage of supplier discounts or even to fund payroll. Your company probably needs more cash flow to support seasonal demands, growth, and more. Many large well-known companies use discount factoring. It is less expensive than traditional factoring, but, like traditional factoring, it is less restrictive than equity financing, allows you to access cash whenever you need it...
read moreIs Cheap Invoice Factoring Available?
People who are looking to factor their invoices will probably have the same question: Is Cheap Invoice Factoring Available? Apart from the quick turnaround approval times and outright funding, what about the other side of the story? What about the fees that come along hand in hand with this convenience? What is Invoice Factoring? Before getting into the details, let’s first get into a brief overview of what Invoice Factoring is and how it works. Invoice Factoring is a financing option where you don’t have to worry about incurring more...
read morePurchase Order Financing and PO Funding
What is Purchase Order Financing and PO Funding? Is it applicable to your business? Factors have been offering this service to our clients in addition to our invoice financing product. If you are selling a product in its same state – let’s say you’re buying hard goods like t-shirts, cell phones, or steel. In this case, they can offer purchase order financing and PO funding. Many times it’s a product that is a consumer good. How PO Financing and Purchase Order Funding Works? PO funding works through a vendor guarantee or...
read moreNon Recourse Factoring vs Recourse Factoring
Non Recourse Factoring vs Recourse Factoring. What does that terminology mean and how does it affect you? One of the best things about factoring is you can outsource your credit department. You can also outsource risk. If an invoice goes bad the factor can charge it back to you. Businesscash.com offers non recourse factoring. If your client files bankruptcy we have accounts receivable policy in place to protect you. It is ultra critical, depending on the quality of who you are selling to if you are getting non recourse or recourse factoring....
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