Payroll financing is a solution that allows your company to finance invoices and assets so that it can make payroll. It usually refers to a common use of invoice factoring, though it can also refer to other solutions. In this article, we cover: Understanding the problem Credit terms kill cash flow How does payroll funding […]
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Eight Payroll Funding Options
One of the toughest problems that a business owner can face is not having enough money to make payroll. This scenario can create a lot of stress for the owner because it is not an easy problem to solve. As an entrepreneur, you feel responsible for your employees. They are your most important resource, and […]
Why Would a Company Sell Its Receivables?
Companies sell their receivables to improve their cash flow. Having good cash flow is essential if you want to run a successful business. You can have a great product/service and excellent profit margins, but your business will suffer if your cash flow is bad. As a matter of fact, profitable companies can also have serious […]
Advantages and Disadvantages of Non Recourse Factoring
Non-recourse invoice factoring plans have quickly become very popular with companies that are looking for a factoring plan. The main advantage of non-recourse plans is that the factoring company absorbs the loss of advance, if your customer does not pay due to a credit reason. Factoring companies use different rules to define what is a qualifying ‘credit reason’. […]
How Much Does Factoring Cost?
This article explains how to calculate the factoring fees of a factoring proposal. It covers the three most common proposal fee types: flat-rate, variable-rate, and discount-plus-margin. We cover the following: How does factoring work? Typical rates and advances How to calculate factoring fees Additional fees Rates vs “Cost per dollar” 1. How does factoring work? […]
How to Evaluate Factoring Companies
The decision to use factoring to improve the cash flow of your company is not easy and should be done carefully. The success of your business depends on making the right choice and partnering with the right company. In this article, we discuss how to evaluate factoring companies effectively. The process is simple to use […]
Typical Factoring Rates
In this article, we discuss factoring rates and how to use rates to determine the total cost of using this solution. From this article, you will learn: Typical factoring rates Tiered vs. flat rates How factoring companies determine your rate Why rate is not the same as cost If you are not familiar with factoring, […]
Do You Qualify For Invoice Factoring?
Factoring plans can provide many of the benefits associated with a line of credit. However, they are much easier to qualify for than conventional financing. Most factoring companies have fairly simple requirements to qualify. The following is a list of the main requirements to qualify for invoice factoring. Note: To learn more about factoring, read […]
Invoice Factoring with No Minimums
Factoring plans often include minimum financing requirements. Committing to a minimum funding volume can help you get better factoring rates. However, it can also hurt your company if your minimums are not managed correctly. Most small and growing companies should consider factoring plans with no minimums, at least initially. From this article, you will learn: […]
What is a Line of Credit Secured by Accounts Receivable?
Summary: A line of credit secured by Accounts Receivable (A/R) is a type of financing that uses your invoices as collateral. It provides a revolving line that allows companies to draw up to 85% of their A/R. Several products can provide a line secured by invoices. Your product choice will be determined by your company’s […]