Can you predict your cash flow?

If you provide terms for your products or services to your customers, it can be a challenge to predict how your cash flow will be from day to day. You are actually providing financing for your customers. I hope you understand that is what takes place, you are being the bank.

Terms are a necessity in today's business environment and to land some accounts, it is an absolute. Even though the agreed upon terms are 30 to 60 days or more it does not always come in on time, however an inconsistent and unstable cash flow does not have to exist.

If you are struggling with inconsistent cash flow, you need to look into factoring. It is a very powerful form of finance that will allow you to predict your cash flow, and grow your company at a rapid pace. You do this by selling your credit worthy accounts receivable to a factoring company. This allows you to get an immediate injection of cash. The factoring company will wait for your customers to pay the invoices while you use your money to meet your cash flow demands.

Want a free factoring quote, get yours today. Click here for a free quote

Have questions? Call me personally 888-603-0055!

Thanks for reading.

Bookmark this site and return often!

It is tax season again

Well you have already filed your corporate returns (hopefully) and now April is right around the corner!

This may be good news for those getting a refund, but not for those with a "pay this amount" on the returns. Factoring is a great way to get an injection of cash into your company. If you are invoicing credit worthy customers and have money tied up in your accounts receivable aging report, set it free with Factoring.

Want a free factoring quote? Click this Link and get yours today!

Thanks for reading!

Keep putting it off!

Factoring is certainly not a service we in the industry can sell. If you do not have a cash flow issue, you do not need factoring, or any other type of financing.

However, many of you have no avenue for bank financing, or you have an inadequate facility currently in place. You need to look into factoring but every time you get close to doing this, you get in some payments and put it off until the next crisis.

If you have found yourself in this position, why not go ahead and get started by getting a free factoring quote By Clicking Here. You may be very glad of this decision when the checks do not make it in next time to cover your obligations.

Want to speak to me personally 888-603-0055.

Thanks for reading!

It is Friday did you make payroll?

Well if you are reading this you made it through the week. And you made payroll again, (hopefully) if not you may need to get rid of some stress, we have included a stress release kit for you.

There is a way to never fear payroll again. Factoring is a "cash slow to cash flow" solution for your company if you are invoicing credit-worthy customers.

If you had most of your money that is tied up in your aging report, you could do more than just make payroll. My last blog touched on that.

I hope you have a great weekend.

Want a free factoring quote, you can by Clicking this Link and fill out our short form.

Thanks for reading!

What will it cost you not to Factor?

Sales are booming and your aging report has swelled like the ocean on a stormy day, could be trouble ahead because profits are falling away since you can't get paid quick enough to keep up with the growth!

Terms are a necessary evil in business, but many do not think about the cost involved by offering terms or that it is even costing the company anything. It is! We always here the question: "How much will it cost me to Factor"

Well do a 180 and think in terms of the cost of not factoring. If you had an unlimited access to working capital, what would this do for your company?

* Are you missing out on sales due to lack of cash flow?

* Are you loosing sleep because payroll is due AGAIN? (please be a check in the mail)

* Are you passing up volume discounts because the cash flow is not available?

* Are you passing up early pay discount opportunities to your vendors?

* Could you add additional sales personnel or expand your marketing efforts with more capital?

That is enough suggestions for now, you get the idea. Keep your thinking cap on and consider the opportunities that factoring can provide by taking the cash imprisoned in your aging report and set it free to work for your company.

Want a Free Factoring quote, just go to our site by Clicking this Link and fill out our short form.
Want to speak to me personally, call 888-603-0055.

Thanks for reading!

Factoring Contracts

I will get an inquiry every so often about contracts.

A factoring company can not fund a contract, you must be submitting an invoice for your product or service. The credit worthy invoice is the asset being purchased, so a contract is not a asset.

So much can happen between turning a contract into a invoice. A factor can not verify and purchase what is not there which is a product delivered or a service rendered.

Keep in mind....Factoring is the process of a company selling credit worthy accounts receivable (invoices) at a discount for immediate cash. The product must be delivered or the service rendered, no pre-bills!

Thanks for reading!

Want a Free Factoring Quote, just click on this link>>>>http://www.divfunding.com and fill out our short form.

Want to speak to me personally, call toll 888-603-0055

Factoring Warning, before you sign

Okay I am not trying to be Mr. Drama, but I do want you to take what you are reading here seriously. We have all heard the saying, "you get what you pay for"

Well apply a little bit of that thinking while shopping for a factoring company. It is of course wise to look for the best rate you can, but consider this. The cheapest rate does not always mean it is the best choice for your company.

You need to understand that taking on a Factoring company should be a partnership, you are both on the same team. The cheapest rate does not mean the best service! You need to find out what you are getting for your fees.

* Customer Service
* Collection practices
* Reporting tools
* Account access
* Invoice submissions
* Float days
* Verification process

These are a few of the things to ask a Factor about before you decide who you want to use.

We use some of the best factoring companies available. If you want a Free Factoring Quote from them, just go to our site at http://www.divfunding.com and fill out our short form and we will get you your quotes today!

Want to speak to me personally, just call 888-603-0055

Thanks for reading!

What will your customers think

This is a question that many of you that are considering factoring are concerned about. To be blunt about it, who cares!

Let me explain this attitude. I do not expect anyone to not care about their customers or not be concerned you might have one leave and go to your competitor, this is a legitimate question.

My point is however that every business must have working capital.

Do not think that Factoring is anything to be ashamed of, if that were the case every company on the planet that has to use any type of finance should be ashamed. The fact of the matter is that cash flow is the life blood of business. We all need cash flow!

What most people do not realize is that factoring dates back thousands of years. The first widespread, documented use of factoring occurred in the American colonies before the revolution. During this time, cotton, furs and timber were shipped from the colonies. Merchant bankers in London and other parts of Europe advanced funds to the colonists for these raw materials, before they reached the continent. This enabled the colonists to continue to harvest their new land, free from the burden of waiting to be paid by their European customers.

The more you check out factoring, you will find that this powerful form of commercial finance is the key to the success and survival of many industries.

Also be aware that this is your money, you have provided your products or services to your customers so why be ashamed to want it now rather than later. You are being the bank when you are owed money.

Want a free Factoring quote, then go to our site at http://www.divfunding.com and fill out our short form.

Want to speak to me personally, then call 888-603-0055.

Thank for reading!

Inc.com article on Factoring

Here is a link to Inc.com for you to read an article from Feb 2006 titled:

Factoring Gets a Face-Lift here is your link:

http://www.inc.com/magazine/20060201/handson-finance.html

I hope you find it informative.

Thanks for reading and please; share your thoughts and questions, if it may help others I will consider blogging about it!

Want a free Factoring Quote, just visit us at http://www.divfunding.com and fill out our short form.

Do You Qualify for Factoring

I have created this blog to give you straight forward content hoping to provide information into some of the things that factors are looking for when qualifying a prospect before entering into a financial relationship with them.

Let’s face it, your time is very valuable and you do not need to waste it filling out applications or talking on the phone when you may be able to identify issues in this blog that would prohibit you from being able to enter into a factoring relationship.

I also created this blog because we want your business; however we want to earn it.

So if you find out that this information is helpful in your process of seeking out a financial solution for your company, we would love the chance to set you up with one of our highly recommended funding sources. Even if you find out you do not qualify right now, you may be able to clear up the issues and qualify at a later time. We would love to be your choice then as well to help resolve your working capital issues.

Some of this information will be basic and you may already be familiar with it, however some may not. Just read through the post and I am sure you will find some helpful information. We want to thank you up front for giving us a chance to serve your company. Let’s get started.

• Let’s take a look at what factoring is:

Factoring is a form of financing where a business sells its creditworthy commercial accounts receivable to a financier known as a factor.

This is a good starting point; you need to be invoicing creditworthy businesses for your product or service. Your product must be delivered and your services rendered (no pre-bills). If they are not creditworthy and you are already having collection problems, a factor will not be interested in purchasing those receivables. You may need a collections service.

• How much do you invoice each month:

If you are invoicing under $10,000 a month this will limit the number of factors that will enter into a relationship with you. If you are speaking with a factor, let them know up front what your monthly volume is and find out if they are willing to work with companies of your size. This could save you from filling out an application and wasting your time with that particular factor.

• How many customers do you invoice:

Factors prefer to fund companies with more than one customer; this helps them lower their risk. If you have just one customer, the factor has a concentration issue, meaning if something happens to your customer they do not have any other receivables from other customers to recoup their money. Let the factor know this up front as well. Some factors will not work with you if you only have one customer. (If your one customer is large and stable this will help).

• Do you have any financing currently in place:

This topic is a re-post of the last blog!

If you have an existing loan or line of credit you need to find out up front if the bank has a UCC-1 against your receivables. A factor must have 1st position on your receivables to be able to enter into a financing relationship with your company.

I would suggest if you have a current loan or line of credit to double check and make sure of this.

I have had many businesses tell me that the bank did not have their receivables as collateral and then proceed through the application process and return the contract.

The factor would begin due diligence and the lien search would return a current UCC-1 on the receivables. Many times the customer does not realize the bank placed a blanket lien on their company covering all assets, including the accounts receivable.

If this is the case, you still may qualify for factoring. If your loan or line of credit is small enough, the factor may be able to pay off your loan or line of credit out of your 1st advance and the bank has no choice but to subordinate (release) the receivables. If not, they may have enough collateral that they will allow the factor to have 1st position on the receivables and allow you to get the needed capital for your company.

So if you have current financing, check on this issue. You may find out the bank will step up to the plate and allow you access to more funds when they realize you are about to leave. This has happened many times.

Also be aware that our factors can help negotiate a subordination so discuss this with us if you need more clarification on this topic.

• Your aging report:

Your aging report is very important to a factor; this is the pulse on your cash flow. An accurate detailed accounts receivables aging report should be aged from invoice date and not due date. Some companies accounting software is set up to age the receivables from due date, this will reflect an inaccurate report to the factors.

If you have an unhealthy aging report you will have a hard time qualifying for factoring. Plus the fees you pay to a factor increase as the day’s outstanding increase.

Make sure you do not have a collections issue.

Remember, creditworthy customers are the key.

• Outstanding taxes, liens, judgments, litigations, felony convictions or bankruptcy:

If you have any of these issues, it does not mean you can’t qualify for factoring, you just need to be forthcoming at the beginning and find out if the issues are too complex for the factor to work through. This may save you some time.

• Are you incorporated:

Some factors will not work with Sole Proprietors, others will, we have some that do. Find out at the beginning of the conversation.

• Financial Statements:

Some factors will require financial statements and others will not.

Providing financial is usually where you will find the most aggressive rates available.

If you do not want to deal with providing financial statements, ask up front if they are required. We have programs available that requires no financials.

• Personal Credit

Even though your customers are the primary focus, your personal credit is taken into consideration. If your personal credit has taken some severe hits recently, discuss this up front with the factor to find out how much it will be taken into consideration.

This covers some of the basic, I hope it helps!

Want a free factoring quote? Just go to our website at http://www.divfunding.com and fill out our short form for your quotes.

Thanks for reading and please:

E-mail me at mailto:mlittle@divfunding.com and share your thoughts and questions, if it may help others I will consider blogging about it!


Want to speak to me personally, please call toll free 888-603-0055

Do you have any financing currently in place

If you have an existing loan or line of credit you need to find out up front if the bank has a UCC-1 against your receivables. A factor must have 1st position on your receivables to be able to enter into a financing relationship with your company. I would suggest if you have a current loan or line of credit to double check and make sure of this. I have had many businesses tell me that the bank did not have their receivables as collateral and we would go through the application process. They would return the contract and the factor would begin due diligence and the lien search would return a current UCC-1 on the receivables. Many times the customer does not realize the bank placed a blanket lien on their company covering all assets, including receivables.

If this is the case, you may still qualify for factoring. If your loan or line of credit is small enough, the factor may be able to pay off your loan or line of credit out of your 1st advance and the bank has no choice but to subordinate (release) the receivables. If not, they may have enough collateral that they will allow the factor to have 1st position and allow you to get the needed capital for your company. So if you have current financing, check on this issue. You may find out the bank will step up to the plate and allow you access to more funds when they realize you are about to leave. This has happened before. Also be aware that our factors can help negotiate a subordination so discuss this with us if you need more clarification on this topic.

Want a free factoring quote? Just go to our website at http://www.divfunding.com and fill out our short form for your quotes.

Thanks for reading and please:

E-mail me at mailto:mlittle@divfunding.com and share your thoughts and questions, if it may help others I will consider blogging about it!


Want to speak to me personally, please call toll free 888-603-0055

Choosing a Factor in the online community

Now this topic can make your head hurt. Once you inquire about opening a Factoring account you have opened the flood gates. Every Factor online is grappling for the chance to be your Factor of choice and one of the primary things you find in the ads and on the websites are high advance rates and low fees.

Here is what you need to know. Fees only go so low because even the Factoring companies have a cost of funds. As the saying always goes Read The Fine Print. You need to make sure you realize that the interest rate, or your discount is not always your total cost of funds. Your formal documents (the contract) will have it all spelled out. If you are getting similar quotes and then have one come in really low compared to the others, you just need to Read The Fine Print. I have lost deals before in the past because a prospect is under the impression they had a better deal, only to find out later it was not the case.

What is more important than your fees?

Services and Reporting

So many people are so focused on the advance rate and fees that they sign up with the Factoring Company offering the lowest fee. This can be a Huge mistake. These are your customers, you worked hard to get them and then to let a Factoring Company come along because they had great advances and low rates. Then after the fact, you find out they have Horrible services and reporting and worse case you cause issues between you and your customers.

Before you sign the dotted line, ask the factor to:

* Show you their reports and schedules.
* Ask what type of online reporting is available to you.
* How do they handle collections.
* Ask for some references
* How familiar are they with your industry

Here at Diversified Funding Services, we have aligned ourselves with some awesome Factoring Companies. I must because that is how I am paid. We have reputable, solid trustworthy funding sources and are proud to do business with all of them. They have outstanding customer service and come highly recommended.

If you would like for us to have them give you a free quote, just go to our website at http://www.divfunding.com and fill out our short form to get your quotes. If you decide to find a Factoring company yourself, good luck. Take these few suggestions to heart and you should do fine.

Thanks for reading and please:

E-mail me at mailto:mlittle@divfunding.com and share your thoughts and questions, if it may help others I will consider blogging about it!


Want to speak to me personally, please call toll free 888-603-0055

8 years and counting

Hello fellow readers, I hope your are going to enjoy and benefit from my post about the factoring industry, I have been a factoring broker for 8 years now.

I have been thinking about doing a blog for at least a year and figured I better just go ahead and see where this takes me. I will make the format very casual and just write in an easy conversational format, so all you english majors be warned.

Let me start off by giving everyone my company website, it is http://www.divfunding.com please visit my website and if you are in need of financing for your company and are familiar enough about factoring, please go fill out our free quote form and I will get you up to 3 free quotes.

My business is for the most part internet driven, so my site is my life. I have seen the competition over the past 8 years get crazy online in this industry, most of this can be the thanks to pay per click advertising, that is why Google stock has exploded.

I will try and keep my blogs as short and informative as possible, unless it is an off topic blog just to share something with you.

So come back often, my next blog will be on choosing a Factor in the online community!

Thanks for reading and please:

E-mail me at mailto:mlittle@divfunding.com and share your thoughts and questions, if it may help others I will consider blogging about it!


Want to speak to me personally, please call toll free 888-603-0055