Selling Accounts Receivables to Finance Your Business
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Selling Accounts Receivables to Finance Your Business

Access Immediate Working Capital Without Adding Debt In today’s economic climate, it can be a struggle to acquire the necessary working capital to bolster a healthy cash flow or to take advantage of new business opportunities for expansion. Traditional methods of acquiring capital including bank loans and lines of credit can be insufficient, expensive, or…

Invoice Factoring vs. Business Line of Credit

Invoice Factoring vs. Business Line of Credit

Which Financing Option is Best for Your Business? Most businesses will require financing at some stage in their development. For example, there might be a need for additional working capital to fund expansion. Or funding may be needed to ease ongoing cash flow timing issues. Fortunately, there are various options open to businesses looking for…

How Will Invoice Factoring Affect Your Customers?
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How Will Invoice Factoring Affect Your Customers?

Learn about the minimal impact invoice factoring has on the customer relationship. Sales invoice factoring is a financing option for small and large businesses alike. This off-balance-sheet financing option releases the cash locked up in accounts receivable, improving cash flow and increasing liquidity. However, unlike other financing options, your customers will be aware that you…

Why Do So Many Manufacturing Companies Factor Their Sales Invoices?
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Why Do So Many Manufacturing Companies Factor Their Sales Invoices?

How invoice factoring shortens the working capital cycle Any business that issues sales invoices to customers can benefit from sales invoice factoring. However, some industry sectors, such as manufacturing, have caught on to the benefits of factoring more than others. Manufacturing companies generally offer 30, 60 or 90-day credit terms, and that can be a…

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How to Calculate if Invoice Factoring Will be Cost-Effective for Your Business

A quick guide to the benefits and costs of invoice factoring Invoice factoring is not a suitable financial solution for every business. Suppose your business raises only a few invoices and customers settle their accounts within 15 days, for example. In that case, the benefits you would gain from factoring invoices would be minimal. And,…

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The Benefits of Invoice Factoring for Wholesale and Distribution Companies

Invoice factoring simplifies cash flow management and eases burden of managing accounts receivable Wholesale and distribution companies often operate with lower gross margins. So, the pressure is on to turn around inventory fast. But, sometimes, customers fail to pay sales invoices on time. And that can leave a cash flow shortage that can lead to…

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How to Know if Your Business Qualifies for Sales Invoice Factoring

Most B2B Businesses Can Take Advantage of Factoring Sales invoice factoring allows businesses to collect cash from their invoices as soon as an invoice is issued. The immediate receipt of most of the money due from an invoice simplifies cash flow management and releases funds that can be used for business expansion. Many businesses in…

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Invoice Factoring Vs. Bank Overdraft—Which Is Best for Your Business?

Compare the Two Forms of Business Funding to Decide Which Best Suits Your Needs It is always best to look at all the options when deciding what type of finance will be a good fit for your business. And, when you need a line of credit to boost a company’s working capital, there are various…