When business owners negotiate with factoring companies, they usually focus on negotiating the best factoring rate. However, owners often don’t consider that the factoring rate is not the same as the factoring cost – at least, not on a “per-dollar” basis. The factoring cost has two major components: the rate and the advance. Getting the […]
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Purchase Order Financing Qualification Requirements
Purchase order (PO) financing has been gaining popularity as a tool to fund large purchase orders. However, many prospective clients often misunderstand what is needed to qualify for this solution. Clients often believe that they only need a substantial purchase order to qualify. Unfortunately, this assumption is wrong. Transactions often have a lot of moving […]
How to Find Clients for a Security Guard Agency (7 Ways)
Summary: One of the key skills you need to build a security guard company is knowing how to find clients. This market is highly competitive, and guard services are always in demand. You must know how to reach clients effectively to succeed in this industry. This article discusses eight ways to find clients for your […]
Advantages and Disadvantages of Payroll Financing
Payroll financing has been gaining traction as an effective way to provide funding to companies that need working capital to pay their employees. Companies with large payrolls often experience cash flow problems because of slow-paying clients. When this happens, the company must pay employees out of its own cash reserves. If the company is growing quickly, cash […]
What is the Factoring Advance?
Most clients are initially perplexed to hear that the factoring advance, which is paid as soon as the invoice is sent to the factoring company, is less than the full value of the invoice. Most factoring companies advance between 70% and 90% as a first installment and hold 10% to 30% of the invoice as […]
Cash Flow Financing for Small Middle-Market Companies
Summary: Small middle-market companies have fewer financial options than their larger counterparts. Large companies have choices comparable to those of small companies. However, they benefit from better pricing. This article discusses cash flow financing options available to lower middle-market companies. It also includes options that are available to distressed companies. We cover the following: 1. […]
How Loans Against Purchase Orders Work
Getting a large purchase order can be a great opportunity if the company has the funds to fulfill it. Unfortunately, small companies often miss these opportunities because they lack the funds to execute the transaction. In this article, we discuss a way to finance purchase orders. We cover the following: 1. How are purchase orders […]
Construction Factoring and Retainage Payments
Most construction subcontractors are familiar with the concept of retainage, also called retention. Basically, their general contractor (GC) withholds 5% to 10% (varies) of their payments until the project is completed. General contractors use this practice because withheld funds can be used to fix any issues with the work. Additionally, withheld funds are an incentive […]
How to Get Clients for Your Office Cleaning Business (7 Ways)
Summary: Growing a small janitorial business in a competitive environment is challenging. Finding and retaining commercial and office clients who can provide long-term cleaning contracts is essential to your company’s success. This article discusses seven time-tested ways to find clients. It is intended for new and growing commercial cleaning companies. We cover the following: 1. […]
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 […]