Summary: Factoring and asset-based loans are types of asset-based financing. Factoring finances Accounts Receivable only and is intended for smaller companies. On the other hand, asset-based loans enable you to finance several types of assets and are better suited for larger companies. While these products have some similarities, they are very different. This article provides […]
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What is a Factoring Company?
Summary: A factoring company provides financing to companies that have cash flow problems due to slow-paying invoices. Factors purchase accounts receivable from their clients at a small discount. The client gets immediate funds from the sale of their receivables, which solves their financial problems. The factor, who now holds the receivables, waits until the invoices […]
How to Finance an Office Cleaning Business
This article covers how to finance a new or growing office cleaning company. It is divided into two sections. The first section discusses resources you can use to finance a new business. The second section covers how to fund operations as your business grows. 1. Financing a new business Financing a new commercial cleaning business […]
How to Get High-Paying Freight Loads
The most important job for any owner-operator or small fleet owner is finding the best-paying freight loads to haul. For many, this task is the most difficult part of owning a trucking company. Unfortunately, many truckers and owner-operators go out of business because they don’t know how to find good loads. This article shows you […]
How to Find Trucking Contracts
One of the greatest challenges for new owner-operators and small fleet owners is finding loads and long-term trucking contracts. Sadly, this is one of the most common reasons many small trucking companies go out of business. In this article, we cover: How to fail (what not to do) Who is your ideal shipping client? How […]
Should You Offer Early Payment Discounts to Clients?
An early payment discount is an incentive that companies receive from suppliers in exchange for a quick payment. It is usually offered by suppliers that need to improve their cash position. In this article, we discuss: Why are early payment discounts needed? How do they work? Who should get a discount? Advantages and disadvantages Are […]
Cash Flow Problems Due to Growth
Sales growth has to be managed correctly, or it can actually bring serious problems to a company. Few entrepreneurs ever consider this outcome because they believe all growth is good. But growing sales too quickly, or getting several very large orders, can create serious cash flow problems. These problems can sometimes be severe enough to […]
12 Cash Flow Problems and Solutions
Most small businesses encounter a cash flow problem at one time or another. Fortunately, most cash flow problems can be prevented with a bit of preparation and the right strategy. This article lists the 12 most common causes of cash flow problems, along with ways to solve them. 1. Not having a cash reserve Most […]
7 Ways to Finance Your Construction Company
Getting financing has always been a challenge for construction subcontractors. Banks and financial institutions have strict underwriting criteria and work only with larger companies. This situation creates problems for subcontractors who need financing to run their companies. This article discusses seven ways to finance a small subcontracting business. These options are available to small and […]
Progress Payments Financing for Construction Subcontractors
Progress payments are common in the construction industry. They are also one of the reasons why many factoring companies cannot work with subcontractors in the construction industry. This article discusses how progress payments work, why they are a problem for some factoring companies, and how construction factoring overcomes those issues. We cover: What is a […]