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...
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 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 your...
read moreDebtor in Possession Financing: A Tool for Companies in Chapter 11 Reorganization
What is DIP Financing or Debtor in Possession Financing? A debtor in possession financing or DIP financing provides funding for a business. DIP Financing will allow the business time to reorganize its business affairs under the umbrella of protection offered by US bankruptcy statues. It is only available to companies once they have filed for protection under the bankruptcy laws. The first step then is for a business owner to determine whether to seek shelter under these provisions. If so, then ownership will need to weigh alternatives...
read moreBid on Request for Proposals (RFP) with AR Financing & PO Funding
Bidding success is the primary 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, before delivery of the final product or service to the end customers, there is a need to review and validate the quality process. Top quality good or service is always the result of high building blocks (people...
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. 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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