What is Invoice Factoring in 2021?

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invoice2020 was a difficult year for many businesses and 2021 may turn out to be challenging as well. With so many restrictions and unpredictable conditions, it’s especially hard for businesses that provide their services on credit.

Invoice factoring is a type of financing that helps you maintain consistent cash flow, even during uncertain times. What is factoring? Let’s take a look at what it is and why it’s one of the best financing options for businesses in 2021. Read more

Factoring Costs and Benefits

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Costs and Benefits of Invoice FactoringBefore entering into any financial agreement, you should be sure to assess the costs and net benefits. Below we are going to walk you through both the benefits and costs associated with factoring.

For most small companies, the benefits of invoice factoring fall into four main categories:

  1. Sales Growth
  2. Bad Debt Elimination
  3. Supplier Discounts
  4. Administrative Cost Reductions

The benefits are derived from the three components of full-service factoring:

  • Finance (receivables converted to liquid funds)
  • Credit Services
  • Accounts Receivable Management

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How to Extend Credit to Customers the Smart Way

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How to Extend Credit to Customers

One decision every business has to make is whether or not to extend credit to customers. Providing customers with credit allows them to obtain goods and services now while paying for them later. At the same time, you have to be careful to do this in a way that’s responsible and doesn’t harm your cash flow. Let’s look at how to extend credit in a way that’s beneficial to both businesses and their customers. Read more

What Do You Need to Qualify for Invoice Factoring?

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Qualifying for Invoice Factoring If you’re researching types of financing, you may be interested in learning more about invoice factoring. Invoice factoring, sometimes referred to as invoice financing, isn’t a traditional loan. Rather, it’s a process in which the factoring company purchases your invoices so you can get immediate cash for them. Invoice factoring can improve your cash flow without incurring any new debt. Compared to other types of financing such as bank loans, invoice factoring is actually simple to apply for. You do, however, need to meet certain requirements. The following are the main invoice factoring requirements for getting started. Read more