Invoice Factoring-Factoring of your AR

Posted by on Jun 15, 2012 in Business Tools, Credit & Collection, Non Recourse factoring, Non-Recourse Accounts Receivable Factoring | 0 comments

One of the more perplexing issues in business ownership is that as business sales decrease, cash flow gets better (in the short term) because you put out less money now as the AR is collected from previous robust sales. However, as times get better and sales increase; labor and materials need to be paid for now, accounts receivables balloon and a new cash crunch begin. In this situation, Invoice Factoring or the Factoring of your Accounts Receivable can help. Accounts receivable financing...

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What is Spot Invoice Factoring?

Posted by on Jun 6, 2012 in Business Tools, Spot Factoring | 0 comments

Spot factoring is the one time or occasional selling of your invoices to a factor. It is different in a couple of key ways versus a traditional factoring company relationship. 1. There is no long-term contract: Most Factoring relationships will have a 6 month to an 18-month contract. This way you know you can get your needed working capital every week and the Factoring Company knows that they will be able to employ a certain amount of capital every week for your use. 2. Spot factoring is...

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Bank Financing versus Invoice Factoring

Posted by on May 31, 2012 in Business Tools, Invoice Factoring, Purchase Order Funding | 0 comments

What is the difference between a line of credit from a bank and Invoice Factoring from a Factoring Company? Well, let us first review how a bank would look at you as a potential loan client. A bank will paint a complex picture of you and your company using the “5 C’s of Credit“. What are the Five C’s of Credit? Character, Capacity, Capital, Conditions, and Collateral. Click on the link for an excellent description. If you can meet a bank’s many requirements and...

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