Frequently during my factoring consults, I face the nervous lip-biter who is just certain (more…)

Factoring receivables, though it’s existed for thousands of years, was a little known practice just a few short years back, but since the economic fallout and in-progress recovery, it’s gaining new popularity.  As you probably know, factoring invoices isn’t the only alternate funding being marketed to business owners. But did you know… (more…)

Invoice Factoring – The DOs and DON’Ts

Accounts receivable factoring can be a great way to realize billed funds and create capital, but just like other financial options, there are times when a factoring company may not be the best choice.

• DO Consider a Factoring Company If…You need operating capital tied up in funds owed by your customers.
• DO Consider a Factoring Company If… You need funds quickly. Many invoice factoring transactions can happen in less than 48 hours.
• DO Consider a Factoring Company If… Your business is growing, but you can’t keep up with production because of limited credit, cash, or both.

Accounts receivable factoring let’s a business owners factor existing invoices through a factoring company in exchange for “up-front” money. It’s a very simple premise that is effective, and works quickly. Factoring is ideal for small to medium sized businesses that need creative funding solutions during growth.

Accounts receivable factoring can be a great move, but there are also situations where factoring is a poor financial decision.

• DON’T Consider a Factoring Company If… Your business is struggling to the point of disrepair.

Factoring companies can create capital for growing businesses, but factoring simply accesses billed dollars. It does not and cannot create profit for an unprofitable company.

• DON’T Consider a Factoring Company If… You’re looking for a solution to slow-pay or no-pay customers.

AR factoring is a legitimate funding option that should be used for legitimate business reasons. If your customers are struggling or refusing to pay you, you have options to ensure you receive your payments, but pawning them off to a factoring company isn’t one of then.

Factoring companies are popping up in Google news and trends lately, as I mentioned last week, because the economic downturn has revived interest in unconventional financing like accounts receivable factoring.

This week, I want to focus less on what factoring invoices is, and more on (more…)

Factoring companies have seen a new wave of factoring clients in recent days, due in large part to the current status of the American economy.Factoring is no longer (more…)