Every year, thousands of business owners look for financing to either start or grow a company. Unfortunately, getting small business financing is difficult. It often requires entrepreneurs to try several alternatives before they find the right solution. This short guide addresses the most common ways to finance your business. It includes some important caveats to […]
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Financing a Jail Supplies and Equipment Company
Summary: Selling products and services to jails and prisons can be very lucrative. Many small businesses benefit from selling products to the Federal Bureau of Prisons and different state departments of corrections agencies. However, selling into this market can be a daunting task. Small businesses also encounter financial obstacles. You may have to work with […]
Why Must My Customer Send My Payments to the Factoring Company?
One of the chief objections that clients have with using factoring is that their customers need to remit payments to a new address. Actually, notifying the customer of the new payment address and procedure is a standard practice in the industry. Factors use a document commonly known as a notice of assignment. But why is […]
How to Compare Factoring Company Rates
Most people use a simple approach when comparing proposals from competing factoring companies. They make their decision based on who offers the lowest rate and the lowest application fee. While this strategy is common, it can lead to making a wrong decision. This is because the lowest rate does not always equal the lowest cost, […]
The True Cost of Factoring – Why Focusing on Rate Alone is Wrong
One of the bigger mistakes that prospects make when negotiating a factoring agreement is focusing their discussions on the rate alone, rather than focusing on the total cost of the service. While it’s true that the rate can sometimes be a good measure of total cost in many financing transactions, that is not the case […]
Six Ways to Finance a Government Contract
Bidding for government contracts can be a great way to grow a small business. Government agencies at the federal, state, county, and city levels purchase every type of good and service. If you sell a product or service, there is a good chance that the government buys it. However, finding a government contract is actually […]
Common Problems When Factoring Invoices
Invoice factoring is commonly used by small and midsized businesses to improve their cash flow. Companies get funds by sending regular funding requests to the finance company. This article covers seven problems that can affect funding requests. It explains what causes the problem, discusses possible solutions, and describes how to avoid the situation in the […]
How to Check Your Client’s Business Credit (Commercial Credit)
Most companies that sell products or services to commercial customers have to offer payment terms – the option to pay invoices in net 30 to net 60 days. Many customers will do business with you only if you are willing to offer these terms. The problem is that not every company is creditworthy and deserving […]
Is Switching Factoring Companies the Right Choice for You?
The decision to change factoring companies should be made only after carefully evaluating the pros and cons. Many business owners underestimate the potential complexity of switching finance companies. This oversight can lead to problems that could have been avoided with proper planning. This article explains how the process works, common reasons for changing finance companies, […]
Improve Your Factoring Application with an Executive Summary
Invoice factoring is commonly used by business owners trying to turn their companies around. In these situations, getting financing is essential for the company’s survival. You can improve your chances of approval by including an executive summary with your application. This article discusses the factoring due diligence process and how an executive summary increases your […]