Archives for August 2013

Turn Your Business Around with an Invoice Factoring Company

August 28, 2013 by Bob Alexander Leave a Comment

Are you struggling as a business owner to get ahead the business each month, yet are finding yourself getting further behind in your finances even though the big orders have been flying out the door? It’s a common problem for business owners who are either just starting out or who experiencing a new jump in business. Being able to stay on top of your inventory, bills and other business expenses when you’ve got a pile of outstanding invoices that you are waiting for your customers to pay can be a big challenge for today’s small to mid-size business owner. If you are having trouble just keeping up with your monthly expenses and are looking for a solution that can help you turn your business around fast, it might be time to sign up with an invoice factoring company.

Improve proper cash flow management with invoice factoring

If you’ve been evaluating your business and have found that you are seriously lacking in proper cash flow management tools, invoice factoring is a smart solution that can keep you ahead of the game with very little effort. If you’ve got a large pile of outstanding invoices that you are waiting for customers to pay, invoice factoring can get you money from them right away instead of having to wait months and months for payment to arrive. Revamping your accounts receivable department by outsourcing your invoices to an invoice factoring company is an easy way to gain control over your business. Instead of wondering how you’ll be able to pay your bills or if you’ll even be able to keep your doors open, you can start focusing on getting new clients or landing that new contract that you’ve been hoping for. When you don’t have to worry about money all the time, you’ll be free to focus on implementing new business systems that will improve your business. It’s the perfect position for a business owner to be in and it’s the easiest way to keep your eyes on the prize and keep your business focused on success.

Improving Cash Flow with Receivables Factoring

August 21, 2013 by Bob Alexander Leave a Comment

Owning a small business in today’s economy certainly has it’s own set of challenges that business owners didn’t really have to deal with 20 or 30 years ago. While it used to be commonplace to go to the bank when you needed a loan for a business, this is no longer the case. Many small business owners are surprised to find that they can’t get a loan from the bank, even if they’ve been in business for a while. Having a few dings on your credit record or not having enough credit can greatly impact your ability to get a bank loan, and for the majority of small business owners who are working hard to get ahead, it’s time to look at a different approach – one that includes receivables factoring.

How receivable factoring works?

With receivables factoring, you sell your accounts receivables, or your invoices, at a discount off of the total value to a factoring company. The company pays you a percentage of the invoice up front and then pays you the rest (minus any service fees) once they collect on it. It’s similar to a consumer using a credit card to make a purchase, where the credit issuing company essentially pays the merchant directly for the item, and then the consumer pays the creditor once the statement is due. While using a credit card is a different process, the concept is very similar to invoice factoring.

Invoices don’t get paid early in most cases

When a business owner extends credit to another business or to a customer, they are basically offering credit in the form of 30, 60 or 90 days, depending on the invoice terms. While the invoice might be paid early, the chances are higher that it won’t be paid early and in some cases, it may not be paid at all. As a result, instead of bumping up your cash flow with customer payments, you’ll be waiting around for months for the money to appear.

Don’t leave the overall health of your business to chance.

When you need to create consistent growth within your cash flow, invoice factoring can help you get back on top. Use the money to expand your business, refresh your inventory or do anything else that your business needs.

Why Invoice Financing Makes Smart Financial Sense

August 14, 2013 by Bob Alexander Leave a Comment

It’s no secret that money is what drives a business and keeps it thriving and growing, however, it’s not always easy to keep the cash coming in when you have to wait for customers to pay the invoices that you send them. No matter what the cause is, when you start to experience problems with your sales flow in a business, it can seriously affect your ability to keep things running smoothly.

Avoid disruptions in your cash flow

For some business owners, it’s not uncommon to be unable to pay suppliers or have trouble keeping up with payroll every month when they are experiencing disruptions in their cash flow. It’s tough for small to mid-size businesses that rely on outstanding receivables to keep the business running. There’s a lot that can happen when you are waiting for customers to pay their bills and for most business owners, it’s this kind of situation that keeps them up at night, worrying about how they will pay their bills or even wondering how they will stay open for business without cash. Invoice factoring is one solution to this common business owner headache. For growing businesses and those who are experiencing seasonal slowdowns, invoice factoring makes it possible to get paid today for the work that you have completed, instead of having to wait months for payment to arrive. Working with an invoice factoring company makes it all possible.

Avoid complicated business financing

Instead of putting up equity in your business for a loan or dealing with other types of complicated business financing, invoice financing doesn’t require a personal guarantee and there’s no long-term contract that you have to sign up for. Instead, you get hassle-free invoice payments, and the third party factoring company takes care of the rest. For companies that can’t really afford to spend time collecting on overdue invoices or who work with customers who typically don’t pay until 60 or even 90 days after the invoice date, invoice factoring can help them stay in business with hassle-free services that offer flexible and affordable financing for all types of small to mid-size business.

Quick Tips about How Invoice Factoring Works

August 7, 2013 by Bob Alexander Leave a Comment

If you are a small to medium sized business owner that is looking at your business financing options because you are tired of waiting months for customers to pay your invoices, then you are likely becoming frustrated with the lack of quality options out there. Invoice factoring is one exception, as it’s a risk free way for a business to get cash without having to deal with things like personal guarantees or fixed payment plans. Invoice factoring is a service that has become increasingly popular in recent years, thanks to the latest boom of new businesses by entrepreneurs and small business leaders that need alternatives to the traditional types of financing through the banks. It’s getting harder and harder for new and emerging businesses to secure funding through the traditional financial institutions.

Invoice factoring service is not a loan

Invoice factoring is one tool that can help business get cash fast, helping fund the day-to-day operations of the business and even help to pay for expansion projects. It’s not a loan, but is instead referred to as an advance on the invoices that you send out every month that is given at a discount of the original invoice amount. Invoice factoring is a relatively simple process and the fees vary, although there are some that are more affordable than others.

Advantages of invoice factoring

One of the biggest questions that business owners have about invoice factoring is what types of advantages there are to using it. While this type of service can be useful to many different types of businesses, it is especially helpful to those who have poor credit or who have a lack of credit due to only being open for a short period of time. If you can’t get a loan from the bank or just don’t want to take on another debt, then invoice factoring is an effective solution that offers added benefits like professional collection services and a regular increase in your cash flow. For anyone who wants to grow his or her business quickly, implementing invoice factoring in the business can be a smart decision that can lead to powerful, long-term growth.