Here are some links to some Factoring articles:

I hope everyone had a wonderful holiday weekend. Thank you to all the veterans that sacrifice so much for our freedom.

These are links to a few different articles, some of these are found throughout this blog, however this provides quick access to some articles that cover some of the popular topics.

Articles link 1

Articles link 2

Articles link 3

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Ideal Candidates for Factoring:

Any business that provides a product or service to other creditworthy businesses and is constrained by their day-to-day cash flow situation.

Does your business need?
Cash to Cover Payroll?
Working Capital to Fuel Growth?
Help with Cash Flow Problems?
Help because of Bank Turn Downs or refusal to extend current lines?
New Equipment to Grow?

What is factoring?

In a traditional factoring arrangement, a company actually sells its receivables to another company (a "factor") at a discount. After the sale, the receivables balances are carried on the factor's balance sheet since title has passed. Because the factor then owns the receivables, it generally provides all the required credit, collection and accounting services necessary to collect the receivables, including assumption of the ultimate loss exposure from the client debtor. The important difference between factoring and asset-based lending is ownership. In factoring, the receivables are purchased and owned by the factor. In asset-based lending arrangements, accounts receivable are pledged to the lender as security for the loan, but the borrower retains ownership and complete control of the receivables and the value of the receivables remains on the borrower's financial statement.

Let Diversified Funding Services help you acquire the capital that fuels your business.

We know the problems of start-ups and high growth businesses. We have aggressive well-capitalized funding sources and represent the lenders who understand your industry and want to help your business.

Thanks for reading!.

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Have questions? Call 888-603-0055!

Time for a reminder!

Everyone is in such a rush these days, it is hard to take the time required to settle down and focus.

When I check my stats for this site, it is amazing to see how little time some of the visitors spend here. I know some of it is because they click on the link to get to the site just to be clicking; it keeps Google and the other pay per click search engines in the profits. And for the fellow start up brokers just entering into the industry, hello and welcome. Call me and I can fill you in!

So instead of writing another article, I am asking the legitimate visitors that are really interested in factoring as a possible cash flow solution to set back and read through the previous post and archives. You may actually find what you are looking for instead of rushing off to the next website to read more of the same.

So set back, relax and enjoy. Please give me a call and let me know if you have any questions, I will be more than happy to help you find the financial solution your company needs.

Thanks for reading!.

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Have questions? Call 888-603-0055!

Factoring and Temporary Staffing Companies!

Factoring is a popular form of commercial finance for Temp Staffing companies because it provides unlimited access to working capital.

One of the obvious reasons is the high payroll that must be made weekly or bi weekly.

Adequate financing can’t be obtained by banks most of the time since staffing companies do not have enough assets for the banks to get comfortable with, many service based industries have this problem.

With factoring, staffing companies can take on new clients because they have the cash flow necessary to hire new employees not having to fear the increase in payroll. This is also very beneficial for start up staffing companies. As long as they invoice credit worthy customers, payroll is readily at hand.

Thanks for reading!.

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Have questions? Call 888-603-0055!

Something different today

I want to end this week on a positive note. I hope you have reached all your goals that you set out to accomplish at the start of the week. Did things go as planned....Yeah, I know.

But, you did accomplish a lot and if you are reading this, it means you are still alive, which is enough to be happy about. So let the pressures of the week stay at the office when you leave today, and if your office is at home, close the door and leave it alone until Monday.

Do something special; spend time with your kids, spouse, family or friends. Take time if you like to be alone and read a book; take a walk or whatever is relaxing for you.

Monday will come soon enough.

If you had another bad cash flow week and do not want to have any more, the 1st thing you can do Monday morning is Click here for a free factoring quote

Have a great weekend and as usual, thanks for reading!

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Understanding Factoring Fees!

The first step is for you to have a clear understanding of what factoring is and then to understand why it is utilized, the services that are provided and finally the actual interest rate being charged. The basics of factoring are quite simple, a company sells its accounts receivables to a factoring company and the factor advances funds against the invoices and then remits the balance of the money, less fees, when the receivables are paid by the customer. Understanding some of the complexities of factoring however, enables one to better analysis its value.

One of the things you will hear about factoring is how much it can cost. What you need to understand is the fact that you are not paying for interest only; you are receiving valuable services along with your funding.

All receivables sent to a factoring company come under its management. Credit checks on your customers are provided, as well as credit screening for prospective customers is available with your factoring account. This could be considered risk management. Your invoices and payments are posted on an accurate and timely manner, monthly statements are sent to your customers by the factor and late paying customers are brought more in line with that industry's normal pay cycle. For these receivables management services the factor charges a management fee. So the total cost of a factoring are of course the sum of interest and services combined, so mentally combining the receivables management expense to the interest will help you understand that factoring is not as expensive as many think.

Once you have this understanding and apply this to the benefits of a positive cash flow you will truly appreciate how powerful this form of finance is!

Thanks for reading!.

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Have questions? Call 888-603-0055!

Beyond the banks!

Do your circumstances require you to look beyond traditional bank financing for the necessary funds to operate or expand your business. You may have signed a large contract with a customer or received larger orders and need immediate cash to deliver your product. However, you may not have been operating long enough, or have enough collateral, to qualify for a bank loan or credit line, or you have outgrown your current facility and are not able to get more.

An alternative source of financing, such as factoring also known as accounts receivable financing, may be your solution.

In factoring, your invoices serve as collateral. This is an option for businesses that receive large contracts that stretch their cash flow resources to the limit, companies with extensive payrolls or up-front costs, or those experiencing a surge of growth. An advantage of factoring your invoices is that it allows you to supplement your basic financing to avoid difficulties meeting the cost associated with your commitments to customers.

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Questions: 888-603-0055

Thanks for reading!

The bank told you NO!

If you have been turned down by your bank for a new loan or line of credit or you have been told no when requesting an increase on your line of credit...All hope is not lost.

If you are providing a product or service to other businesses with terms, your solution may be in your hands.

Look at your accounts receivable aging report, take the total current to 30 day amount and you can safely expect 80% of those funds now.

This is what factoring can do for your cash flow.

The factoring company will wait on your customer to pay the invoice. Once the invoice is paid, the factoring company will then pay you the remaining 20% minus fees.

Factoring is a powerful form of commercial finance that creates instant cash flow your company can use to meet the demands you are facing.

Want a free factoring quote Click this Link

Want to speak to me personally 888-603-0055

Thanks for reading!

Fraud in the factoring industry!

It seems like moral standards in this world continues to plummet as time passes. We have seen scandals in big business with WorldCom, Enron and the likes. So many people lost hard earned money, their retirement funds down the drain. Trusting those in charge ended up being another let down in humankind. Greed stole their conscience.

I think it is fair to say that no one likes to be ripped off, heck even hard criminals kill those that they catch ripping them off, how bizarre is that.

The point to my post here is to give you some insight about the factoring industry and why factoring companies have things in place like notifications and verifications.

Many times people looking into factoring will get uncomfortable when they are told that their customers will be contacted by the factoring company to verify the invoices. One of the reasons mentioned is usually that they do not want their customers to think they are in financial trouble. This is such a incorrect view, every company on the planet has to have working capital, so if you get a loan or a line of credit from a bank does that mean you are in trouble?

Part of the agreement in a factoring relationship is that once the factor advances on the invoice, they are owed the payment. One of the common ways factoring fraud is committed is that the payments on a factored invoices will be mailed to the factors client instead of the factoring company. Instead of notifying the factoring company about the mistake and forwarding the check, they will deposit the check. It is later discovered and instead of finding out a mistake was made, the client keeps the monies and legal action begins.

Another example is phoney invoices. A company will create invoices to sell to a factoring company that are not valid.

You have to understand that anytime you are obtaining money from an institution the contracts are heavily on the lenders side. Who would blame them, they are taking a risk as long as the monies are out. So a factoring company is no different, they have certain things in place to protect them as much as possible. The fact of the matter is; as long as everyone plays by the rules, no contract will ever have to be enforced

Thanks for reading!.

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Have questions? Call 888-603-0055!

PROCESS: How Factoring Works!

Here is a simple example to demonstrate how the factoring process works. You have a million dollar, three-month contract with XYZ Corp. that you are starting. (You have provided all the information on the contract and on XYZ to your factoring company and this particular customer has been approved for financing.)

You complete your service or deliver your product and send out the first invoice of $100,000 to your customer; at the same time you fax a copy to your lender with a request for financing.

Your lender gets in touch with your contact at XYZ and verifies that the invoice is in line with the contract and will be paid.

At this point, your lender wires the advance on that invoice to your bank account, based on the advance rate previously agreed upon. For example, if your advance rate for this contract is 80 percent, you will receive that percentage of the face value of the invoice. In this case, that would be $80,000 (80 percent of $100,000). Now you have this money in the bank to pay employees, vendors, whatever you need the money for. The factoring company then waits on payment while you concentrate on completing the next stage of the contract. In other words, focus on running your business and not worrying about cash flow.

When XYZ Corp. pays the invoice, they send the check for the full $100,000 to the “lock box” (P.O. Box) of your factoring company. (The check can still be made payable to your company.)

Your Factor retains the $80,000 originally advanced to you, and then sends you the 20% minus all fees and interest to your bank account.

Note that you do not have to finance every invoice that you send to XYZ Corp. If, toward the end of the contract, your cash flow improves, you can notify the lender that you are not requesting financing on certain invoices. This is just one example of the process; each factoring company has its particular methods and qualifications.

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Thanks for reading!