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. In fact, 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. This usually has large cash flow needs. Projecting working capital needs is the key. This is because it serves as an accurate forecast for operational the...
read moreWhat is the Difference Between a Personal Guarantee and Validity Guarantee?
It is crucial to understand the difference between a personal guarantee and validity guarantee. This is because it is a 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 you in case...
read moreDebtor in Possession (DIP) Financing – a tool for companies in Chapter 11 Reorganization
How a business can exit chapter 11 bankruptcy with Debtor in Possession (DIP) Financing All businesses, large and small alike, experience setbacks. Production difficulties, service disruptions, lost customers, you name it. There are as many things that can go wrong in business as there are businesses themselves. When problems escalate, financial pressure often follows, creating stress for the business and for business owners. Left unchecked, difficulties can threaten the continuation of the enterprise itself. But not always. Debtor in...
read moreBid on Request for Proposals (RFP) with AR Financing & PO Funding
Bidding success is the major key driver for companies of all sizes. When making bidding and pricing decisions, it is crucial for companies to ensure that the outcome is to be positive about their general performance. Either the business offers services or goods, it needs to have the right quality for its targeted customers; meaning that before delivery of the final product or service to the end customers, there is a need to review and validate the quality process. In fact, a good quality good or service is always the result of a great...
read moreFree 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. Usual 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 accepts...
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