Bank Loans vs Invoice Factoring for Business Funding

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bank loans vs invoice factoringWhen someone needs business financing, the first type of funding they usually consider is a bank loan. However, invoice factoring can be a good alternative with many advantages. Let’s look at some of the key differences between factoring and a bank loan.

Bank Loans: Why They Don’t Work For All Businesses

For most, a business loan offered by a bank is the most familiar type of financing. If you need business financing, it’s worth considering a bank loan. However, this type of loan comes with several potential drawbacks. Read more

10 Ways to Increase Profitability of Your Trucking Business

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increase profitability of trucking businessRunning a profitable trucking business isn’t easy these days. There’s lots of competition, fuel prices are rising and customers can be inconsistent with their orders and payment schedules. Nevertheless, there are certain strategies that can help you boost your profits and grow your company. Here are 10 of the best ways to make your trucking company more profitable. Read more

Purchase Order Financing During COVID-19

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Purchase order financing during covid-19COVID-19 has been stressful and challenging on many levels. In addition to health concerns, the economy has suffered greatly with many jobs lost and businesses shutting down or filing bankruptcy. With the slowdown in many industries and traditional lenders’ underwriting process becoming more stringent, many business owners have discovered the benefits of alternative financing such as invoice financing and purchase order financing.

Traditionally, importers and distributors of consumer goods & supplies selling to retailers were most often using purchase order financing to grow their businesses.  In the new landscape, many retailers are requiring longer payment terms which only increases the need for companies selling to them to obtain short-term funding such as purchase order financing and accounts receivable factoring.

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Value of Non-Recourse Factoring During an Economic Downturn

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Value of Non-Recourse Factoring During an Economic DownturnBusinesses in all different industries are being affected by the ongoing shut-downs.  Not only has business slowed for many, but customers are taking longer to pay.  Whether you are a factoring veteran or you are new to invoice factoring, you’ve discovered how it can solve your cash flow issues.

However, an advance on your receivables will only benefit your cash flow and overall business if you get to keep that cash.  Unless you are using non-recourse factoring, you are at risk of having to pay the advance back to the factoring company should your customer have financial issues and not pay.  Increasingly late payments are one sign of a possible impending bankruptcy. Read more

How to Safely Extend Credit to Customers During a Pandemic

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safely extend credit to customers during pandemicExtending credit to customers is an important yet sometimes tricky issue for businesses. On the one hand, when you extend credit you can boost sales and acquire new customers. On the other hand, it can damage your cash flow if you don’t handle the process carefully. During the COVID-19 pandemic, the credit issue is especially relevant with so many customers asking for credit. Read more