Cash Flow for Distributors & Wholesalers
As a business owner, you may agree that the biggest challenge of managing a business 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, then 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...
read moreWhat is the Difference Between a Personal Guarantee and Validity Guarantee?
It is critical to understand the difference between a personal guarantee and a validity guarantee. The difference between the two is 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 responsibility in the event of a default by the person primarily accountable 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...
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...
read moreAccounts Receivable Financing for Staffing Firms & Payroll
As the US economy continues on its upward path, the demand for temporary staffing is growing even faster. However, from 2020 to 2024, the global average increase in revenue is expected to be roughly 2%. These trends reveal sustained growth in revenues and profitability for staffing firms. At the same time, growth also means continuing and ongoing struggles in staffing companies’ cash flow. The reason: Client companies often take their time paying their invoices; normally taking them 30 to 60 days. Meanwhile, the staffing firm needs cash to...
read moreFinancing the Scrap Metal Industry
Overview of the Scrap Metal Industry The scrap metal industry accounts for up to 90 billion dollars in economic activity in the U.S. Companies often collect scrap metal from a variety of sources, including junk cars, old machinery, appliances, and construction waste, which enable many small companies to enter the industry and cater to a local market. Scrap metal recycling in the U.S. remains a valuable source of supply for developing countries that need both ferrous and nonferrous metals to supplement their development. Over the five years to...
read morePicking the Best Manufacturer Finance Company
Picking the best manufacturer finance company can be a challenge. There are many complex factors involved, and understanding them isn’t easy. Below are the significant issues that one must follow to pick the proper finance company for your specific manufacturing business. At times, the best solution is not always the easiest. Your specific industry The finance company must have deep expertise in your manufacturing process and best industry practices to help optimize efficiency, accuracy, and profitability. The best financing company will...
read moreBenefits of Non-Recourse Accounts Receivable Financing vs. Bank Loans
Many Non-Recourse Accounts Receivable Financing is the sale of a companies receivables at a discount in exchange for immediate cash. The percentage of working capital a company can receive upfront ranges from 70-92%. AR financing can be a perfect solution for many industries, including textiles, to wine distributors to start-ups. Any company that is non-bankable AR financing improves cash flow and accelerates growth and evades debt burden. There was a time when many consider bank loans as the easiest, least expensive source of business...
read moreWine Import and Export Financing
BusinessCash announces an increase in accounts receivable factoring and purchase order financing services for their wine industry import and export clients in from 2015 to 2017. The wine importers and exporters have expressed an increased need for working capital. Mainly because of product demand growth and the time lag between the production, distribution. Also for final payment by the company’s customers. Wine importers and exporters are pointing to premium wine brand demand as the main reason for the increase. “People are trading...
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