Tips For A Smooth Factoring Application
Every day business owners juggle the cash flow demands of their companies. More than ever, they are turning to invoice factoring as a trusted solution, even when banks decline loans and credit lines. If you are considering accounts receivable funding it pays to be prepared. Save time and money by understanding these five tips before making application to factor your accounts receivable: 1. The Factoring Application The first step in the process is helping the factoring company get to know your company. This might start with a phone...
read moreHow to Reduce the Costs of Factoring Invoices
When a business is strapped for cash they often turn to factoring accounts receivable as a financing solution. Of course a factoring company expects to earn a profit on the cash advance and charges a fee for their service. Since the overall goal is improved cash flow, a company considering accounts receivable financing will carefully weigh the benefits against the costs. Here are five ways a business can reduce or offset the cost of factoring and still improve cash flow: Strategy #1 – Early Payment Discounts Use the money to take advantage of...
read moreHow Recourse and Non Recourse Factoring Compare
If you plan on selling invoices it is important to know whether the funding proposal is for “recourse” or “non-recourse” factoring. Here is an overview of both methods. A Look at Non-Recourse Factoring Just like it sounds, there is no recourse for unpaid receivables against the client. The client selling invoices is not financially obligated to the factoring company in the event an approved and funded invoice is not paid by the customer. To protect their investment, the factoring company will check the credit strength of account debtors and...
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