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…

How to Chase Overdue Customer Accounts Without Souring the Relationship
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How to Chase Overdue Customer Accounts Without Souring the Relationship

10 Tips to Collect Late Invoices Without Upsetting Customers It would be wonderful if all customers paid their invoices on or before the due date. However, that is simply not the way things work. Any business running accounts receivable (AR) can expect some customers to pay late. Some people would never pay their bills if…

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What to do When a Customer Won’t Pay Their Invoices

10 Ways to Improve Collections and Cash Flow If you manage accounts receivable (AR), you will be all too familiar with the usual excuses for non-payment. The check is in the mail, my manager is away on vacation, and we sent a payment to you last week; these are just a few tactics people use….

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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 Most Common Invoice Management Mistakes You Can Easily Avoid

It’s likely you’re making at least one of these invoicing mistakes, but it’s not too late to put good practices in place. If your business sends out sales invoices, it’s a good idea to have your customers on a set billing cycle. This keeps money flowing into your company on a regular basis. Steady cash…

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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…