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 what types of companies each financing option is applicable to. 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...
read moreNotice of Assignment: A Step in the Factoring Process
In the business world, brand image and reputation are key factors of success. How you present yourself as a business as well as your culture, values, and policies is crucial in determining the idea your end customers and potential ones will have about your company. When a business decides to factor its accounts receivable, “will my customers be aware that I am factoring?” is a common question they ask their factoring company. And yes, your customers are notified of this matter. But no need to start stressing, your customers are most likely...
read moreSingle Client AR Factoring: Your solution to cash flow problems
The primary challenge of running any business is to keep a consistent cash flow running. In fact, some businesses are more vulnerable than others to cash flows problems. It’s a common dilemma for small and mid-sized companies as they usually find themselves lacking enough working capital to fill a second large order when they have already fulfilled the first one and awaiting payment. Even more problematic is companies that rely on one or two large clients for their revenues are limited in their cash flow solutions. Often, they struggle to...
read moreWhat are Average Factoring Rates?
What are Average Factoring Rates? Opting for invoice factoring over other financing choices is only the first step. Once you have decided on non-bank financing to improve cash flow in your business, you need to investigate your average factoring rate and the total cost of invoice factoring. Factoring companies charge different rates and fees, and you want to make sure your overall cost is the best value for the money you spend on cash advances. How are You Charged Interest with Invoice Factoring? There is often some confusion with the...
read moreWhat is Non-Recourse Invoice Factoring?
How does non-recourse factoring benefit your small business? What is the difference between Recourse & Non-Recourse Invoice factoring? Is Non-Recourse Factoring more expensive than A/R Factoring with recourse? Here are answers to both your Recourse and Non-Recourse A/R Financing questions. Non-Recourse Factoring or Factoring Without Recourse is an agreement within a factoring contract where the factor’s client does not have to pay back the factoring company if an invoice is not specifically paid due to bankruptcy of the client’s...
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