One of the most frequently asked questions about factoring is one of cost. While pricing can be simple and straightforward when an all-inclusive model is used, there are variations in factoring services to consider because not all factoring programs are created equal. Here we will discuss the main program differences that affect a factoring fee, also known as the “discount rate”. Read more
One of the biggest shifts in the U.S. economy in recent years is the drastic increase in oil production. The U.S. has increased oil production more than 60 percent since 2013, to more than 12 million barrels per day. While the U.S. once had to import most of its oil, it’s now the world’s largest oil producer. Read more
Invoice factoring is a type of alternative financing that helps businesses improve their cash flow situation. It can be used in place of or sometimes in addition to other types of financing such as equipment financing, unsecured loans, and venture capital.
Let’s take a closer look at how invoice factoring works so you can decide if it’s worth considering for your own business to help with cash flow and more.
Many businesses are seasonal and experience spikes and valleys during different times of the year. For example, if your business depends on summer tourist traffic, sales may be slow during the winter. On the other hand, you may have a business that depends heavily on holiday sales. In such cases, it can be tricky to maintain healthy cash flow during the slower periods.
There are many tactics to help offset cash flow problems. For example, you might introduce new products or services that are popular during your off season. Another very effective way to enjoy steady cash flow is to use invoice factoring, a type of financing that lets you collect payment up front for your invoices. Read more
Many question the difference between purchase order financing and invoice factoring. Here we will explain the difference and when each form of financing is used.
Purchase Order Financing
Purchase order financing is for importers, wholesalers, and distributors of goods who receive a purchase order (PO) from another business, and need financing to pay their supplier or manufacturer for the finished goods. As an example, we’ll use a toy company that is selling to a big box retailer. The toy company receives a PO from the big box retailer. Read more