Many construction subcontractors have trouble paying employees or suppliers on time. Often, they have cash flow problems because clients pay invoices in 30 to 60 days while suppliers ask for quick payments. One way to fix this working capital problem is to use a revolving line of financing. This article explains how construction factoring can […]
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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 […]
Why Are Net-90 Invoices Not Factorable?
Some companies ask their vendors to provide net-90 days or longer to pay invoices. This request often strains the vendor’s cash flow. Few companies can wait three months to get paid. Vendors often address this challenge by trying to finance these invoices. Unfortunately, most net-90 invoices cannot be financed with factoring. This article explains why […]
How Quickly Can Invoice Factoring Companies Provide Financing?
One advantage of factoring over other options is that many finance companies can get you funding quickly, usually within days. However, several things can delay the transaction. This article explains the factor’s onboarding process, potential transaction challenges, and how to streamline your funding process. We cover: 1. Overview of the process The onboarding process to […]
Payroll Funding for Small Businesses
One of the greatest challenges that a small business owner can ever face is not having enough money to pay employees. Delaying payroll affects employee morale and your ability to retain key individuals. This article discusses how to use payroll financing to meet payroll and keep the business growing. We cover: 1. The most common […]
How to Fix Your Trucking Company’s Cash Flow Problems
Every company runs into cash flow problems at one time or another. However, many of these problems can be prevented with some planning and diligence. In this article, we cover nine common cash flow problems that affect carriers, along with some solutions: 1. You don’t charge enough Many trucking companies experience cash flow problems because […]
How to Select the Best Asset Based Lending Company
Selecting the right asset based financing company is one of the most important decisions you can make for your business. Your evaluation process must be designed to ensure you choose the best asset based lender to fit your tactical and strategic financing needs. This article describes a short process to help you evaluate potential lenders. If you are not […]
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: 1. What is […]
How to Get Credit from Suppliers
Most established companies get credit terms from their suppliers. This credit enables companies to buy goods or services while paying the supplier on net-30 to net-60 terms. Clients usually demand payment terms from their suppliers because it improves their cash flow. They get to use the supplier’s services or products for a few weeks before […]
Financing Options for Distressed Lower Middle-Market Companies (“Special Assets”)
Summary: Middle-market companies that are out of compliance with their lenders are typically assigned to the Special Assets group. Usually, these companies must find a new lender as part of their workout process. Few lenders finance distressed companies in this market segment. Consequently, finding a replacement lender can be a significant challenge for lower middle-market […]