If you’re looking for non-traditional financing for your business, invoice factoring is one of the most effective solutions worth considering. Getting cash for your invoices immediately rather than having to wait for clients to pay boosts your cash flow, helping you meet expenses and invest in your business. You may be wondering what qualities to look for in an invoice factoring company. The following are some important points to consider. Read more
Why Would a Small Business Use Factoring Services?
Small businesses, more than ever, are facing cash flow challenges. To keep your business running efficiently, you need cash on hand for payroll, inventory and all your expenses. Invoice factoring can provide a solution, letting you have consistent cash flow independently of when your clients pay your invoices. Let’s look at what small business factoring is and how it can help you. Read more
Factoring Costs and Benefits
Before 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:
- Sales Growth
- Bad Debt Elimination
- Supplier Discounts
- 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
How to Extend Credit to Customers the Smart Way
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
Purchase Order Financing During COVID-19
COVID-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.