Monday, November 13, 2006

The Factoring Industry Continues to grow

Factoring volumes worlwide continue to grow at double digit pace!

Click Here to read the Article

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Wednesday, September 27, 2006

Factoring around the World

Factoring is a very popular form of commercial finance around the world. See what is happening with a bank in Chile.

Click this Link

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Thanks for reading!

Thursday, August 31, 2006

Factoring Fees!

I have been amazed at some of the rates I see advertised for factoring services online. I mean come on get real. I sure hope that the quality of service comes with those rates.

I think we all have experienced in life those things that seem too good to be true and once we take the bait we once again are disappointed.

Another example is looking for a new car. Every dealer is grappling to get us to come in to buy from them because they are the best dealer on the planet and have the most selection etc. But we all know that the dealer has a cost for that vehicle and they can only go so low on the price. Well if all of a sudden we opened up the paper and read an ad on the automobile we were interested in and it was way less than anything we have come across in our endless search for the best deal.

WARNING....WARNING what is up with this picture. Well we get to the dealer and find out it was actually a demo with 5 thousand miles, always a catch.

So my advise to you is to proceed with caution when you see extremely low introductory factoring rates advertised and get to the low down facts of what you are really getting. Most Factoring companies have a cost of funds just like the dealers have a cost for the vehicles on the lot.

May I suggest reading one of my previous post titled Factoring Warning, before you sign: Click this Link for the article

Get a Free Factoring Quote by Clicking this Link

Have questions 888-603-0055

Thanks for reading.

Thursday, August 03, 2006

Non Recourse Factoring

I think many business owners that request Non Recourse Factoring do not really understand what Non Recourse Factoring vs Recourse Factoring really is.

Non Recourse Factoring applies to the inability of the client's customer to pay for credit reasons, not for disputes over the product or services quality or quantity ordered etc. These issues would be a Recourse Factoring transaction.

Factoring is a cash flow tool, not a way to get rid of bad debt. These customers belong to the company looking to factor so why would anyone expect for a factor to just buy a receivable and not have any recourse to the advanced funds over a dispute.

Just understand that Non Recourse Factoring is not selling the invoice and totally walking away. The responsibilities of providing a good product or service still applies. Do not miss the opportunity of signing up with a better factoring company because you thought you were signing up with a Non Recourse factor that allowed this.

The latest stats in from the Commercial Finance Association listed the results from surveying the Factoring Companies that are members had a 9.3% increase in Factored volume over 2004 to 112.8 Billion. Global Factoring volumes exceeded 1 Trillion.

The Factoring Industry continues to see growth because this powerful cash flow tool is getting the recognition it deserves and is embraced for the simplicity and solutions it provides.

Get a Free Factoring Quote by Clicking this Link

Have questions 888-603-0055

Thanks for reading!

Friday, July 28, 2006

Purchase Order Funding!

Purchase Order Funding (PO Funding) is not a factoring transactions. Some business owners have a misunderstanding thinking that they can receive an advance on their PO's and use the funds as they please.

Purchase order financing is short term funding used by a borrower to finance the fulfillment of a sales contract (order) with a credit worthy end customer. The terms of the purchase order financing agreement are very specific, requiring the borrower to use loan funds for the purchase of certain materials and/or services needed to deliver goods to the end-customer. The PO funder handles the flow of these funds. Once the order is fulfilled it is then turned into an invoice which is then factored.

Remember this simple rule. Factoring is for business to business products or services, the product must be delivered or the service rendered, no pre-bills. The invoice must be to a credit worthy company. You will find many factoring blogs in the archives to your right on this topic

Have Questions 888-603-0055

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Thanks for reading!

Tuesday, July 18, 2006

Another Factoring Article

It is a challenge for me to think of fresh topics to write about factoring when I have covered so many issues in the factoring articles written throughout this blog.

So instead of forcing a topic I think you may find it beneficial to go through the archives, you possibly will find the answer to your questions.

Here are a few suggested factoring articles:

Tips on Choosing a Factor

Do you Qualify for Factoring

Factoring Warning

What kind of Companies Use Factoring

The Factoring Process

Get a free factoring quote by Clicking this Link

Questions 888-603-0055

Thanks for reading!

Thursday, July 13, 2006

Factoring and Retail Businesses!

Many people are not aware that a financial product is available for retail businesses that accept Visa / Mastercard.

These companies can actually get a loan based on future credit card sales. The funding source will look at your past Visa / Mastercard sales to determine the loan amount you can borrow.

The loan is paid back by deducting a fixed percentage on future credit card sales. This is a retail factoring product. Once the loan is paid down, you can then borrow again.

For more information call 888-603-0055!

Want a free factoring quote Click this Link

Thanks for reading!

Monday, July 10, 2006

Atlanta Journal Constitution

I just wanted to share an article about my company and the Factoring Industry in yesterday's Sunday Paper.

Cash consultant
Broker helps firms turn slowly paid invoices into fuel that turns the wheels of commerce

By PÉRALTE C. PAUL
The Atlanta Journal-Constitution
Published on: 07/09/06

When companies find themselves in a bit of a corporate cash crunch, Mark Little and others like him are called on to give them temporary infusions of money.
Little, president of Jonesboro-based Diversified Funding Services Inc., is a factoring broker and consultant who helps companies willing to sell their accounts receivable to firms willing to buy them.

Typically, these are companies in service industries that need money to fund things like payroll and other expenditures, since the receivables they're waiting on could take months.
Little, a former private investigator who grew up working in a family-owned auto repair business, said he knew firsthand how tight cash flow could be for small businesses.
Often, they can't get traditional bank financing or can't get enough because their biggest assets are their receivables, he said.
And that's what got him interested in the factoring business.
"It really intrigued me because I knew the need that it could fill," said Little, 42. "If a bank has to tell a customer no, a lot of times, we're able to grow that company to be bankable."
He said he brokers financing for companies that have between $10,000 and $5 million a month in receivables.
There's a lot of money to be made in cash.
The industry financed more than $120.1 billion in receivables last year in the United States, up 15 percent from the $104.4 billion in 2004, according to Factors Chain International, a trade group.
Worldwide, the business grew 18 percent to $1.29 trillion last year, up from $1.09 trillion in 2004.
Even traditional banks, including Branch Banking & Trust Co., Wells Fargo and HSBC, have units that provide factoring for businesses.
Q: Explain how factoring works. What exactly is it?
A: Any business-to-business or service and the company invoices for that product or service. The product must be delivered, the service must be rendered, and they invoice and they wait for payment. The terms can be 15, 30, 60, even 90 days. As long as they're invoicing a creditworthy company, then they can qualify for factoring. There are some things that need to be taken into consideration, whether they have any existing loans or lines of credit. It's basically selling accounts receivables at a discount.
Q: So, if I had $100,000 in receivables coming in each month and I needed cash flow, I would go to you?
A: Correct, as long as you're invoicing a creditworthy company. A good example like, say, a staffing company — IT [information technology] staffing or nurse staffing for hospitals, etc. — every time they place an employee into a company they have to make payroll at the end of the week.
They invoice that company, that hospital etc. for that week's worth of labor. Well, they make payroll. However, they invoice that hospital and they have to wait 30 or 60 days for payment because that's the terms. So, they can be out two, three, four payrolls before they get paid from the previous invoices.
With factoring they can sell their receivables and get that immediate injection of capital. It works off an advance rate. The average advance is 80 percent. So using that $100,000-a-month example, they get $80,000. The factor then waits for payments. When the payment is made, the factor rebates that 20 percent minus the fees.
Q: I get the $80,000 and once I get my receivables against that $100,000 I would pay you your fee?
A: The payment — since the factor has purchased that invoice — would go to the factor and then that would activate the 20 percent. The factor would advance the $80,000, the $100,000 payment would come in and the factor would send the 20 percent minus the fees. So for example, if the fee was a total of 3 percent, they would receive $17,000.
Q: What's the range in fees?
A: It depends on the volume of the company and how much they're doing a month. The rates can be as aggressive as prime plus 2 [percent] up to what's called block funding. Instead of having a daily rate, a factor may choose to say it's going to be 2.5 percent for 30 days. The longer the invoice is outstanding, the higher the fee will be. There will be a zero-to-30-day fee and then a 31-to-40-day fee. So it depends on if it's a daily rate or a block schedule.
Q: What are the types of industries that most use factoring?
A: Any business-to-business product or service is a candidate. However, factoring is one of the oldest forms of commercial finance that exists. It used to be very popular in the manufacturing and textiles industries. It's very popular for service-based industries — trucking heavily utilizes factoring.
Construction is a niche area for factoring. Medical receivables are another niche for companies that invoice Medicare and Medicaid. But truly, any business-to-business product or service — that's why I'm able to help start-up companies.
Let's say that you're not bankable at this time, because you haven't been in business long enough or don't have the financials or the track record. As long as [you're] invoicing a creditworthy company, that invoice is the asset, so that's what's taken into consideration. So that's why start-ups are able to qualify for factoring, because the asset is a creditworthy receivable.
Q: And they can't get traditional bridge loans or business loans factored against whatever income or capital they might have from month to month?
A: A lot of times it's both sides of that coin. Some companies can't qualify for traditional financing or they don't qualify for an adequate [credit] facility. They can't get enough to meet their cash flow needs. Or, it's a company that has outgrown their [credit] facility and a lot of their growth is receivables-based and the banks are not as comfortable with it being strictly receivables-based. There's no other assets to sink their teeth into. It's just as popular for start-ups as well as rapidly growing mature companies.
Q: So why haven't banks established factoring companies separated from their main banking operations?
A: Some do. One of the primary reasons that drove me into this is, I grew up in a family-owned business. I did not know factoring existed. There's so many business owners that desperately need this that do not know it's available. If you start comparing costs, it's two totally different products. I have clients that I have watched that go from start-up — from $10,000 a month — to invoicing $1 million a month. And they grew their company with factoring. This provides not only jobs but it provides a valuable service.
Q: If you have a lot of requests for factoring, is that a sign the economy is growing?
A: Oh, definitely. It is a good indicator. We've all heard the saying that 'cash flow is the lifeblood of business.' It's true, regardless of how large or small a company is. There are companies that ... go out of business because of their growth. Because they don't have the capital to fuel that. Factoring is an unlimited access to capital that does not create debt. So they're able to take on a new customer, sell that receivable, still offer the terms and get the capital they need to keep growing and expanding.
So, it's a very good sign of strength.

Here is a Link to the article

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Questions 888-603-0055

Thanks for reading.

Friday, June 30, 2006

Seven Tips to Improve Your Cash Flow!

I keep sharing these links to other articles on Factoring so you can become comfortable with the topic. Having this information coming just from my knowledge of the industry may not allow you to obtain the global impact Factoring has on providing cash flow for businesses of all sizes.

Factoring is growing in popularity and many companies are missing out on the solution they are looking for because they do not understand how Factoring works or they are unable to get used to the hands on approach needed to make the transaction work!

So without further delay here is the link to the article "Seven Tips to Improve Your Cash Flow! Click this Link

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Questions: 888-603-0055!

Thanks for reading!

Monday, June 26, 2006

In The Headlines Again!

Another Factoring article for you to read. Here is a snippet from the MSNBC article:

"Factoring is an old financing tool, and corporate venture capital is a new one, but both are currently popular and potentially powerful ways to finance growth in entrepreneurial companies. Dennis Hauser Jr. needed working capital to help meet payroll and other short-term cash-flow needs for Tampa, Florida-based DCH Roofing Inc., the 70-person company he founded in 2001. "The banks didn't want to talk to us," says Hauser, 42. His accountant suggested factoring"

That is a smart accountant!

You can read the entire article by Clicking this Link

I always mention that factoring is a very powerful form of commercial finance that you may need to look into for your working capital.

Get a free- Factoring quote by Clicking this Link

Questions 888-603-0055!

Thanks for reading!

Thursday, June 22, 2006

Is Factoring Expensive?

Factoring is more expensive than bank financing but cheaper than equity financing.

A factoring relationship generally lasts 1 to 3 years during the most dramatic growth period. However I have set up some clients that have been utilizing factoring for over 6 years straight. A factoring client usually graduates to conventional bank financing when growth levels off and balance sheet ratios fall into a more conservative range.

A good factoring company will become an outsource of credit, collections, and accounts receivable management. These services such as generating monthly statements to all your customers can save you money in two ways. First, clients feel they can get by with less administrative staff if the factor is doing the above services. And secondly, the typical growth company wants to concentrate on its products and sales and looks to outsource other needs. An astute factoring client quickly learns how to pass through factoring costs to his or her suppliers by negotiating larger trade discounts.

Factoring offers numerous benefits and is worth looking into for your cash flow solution.

Get a free Factoring quote by Clicking this Link

Questions: 888-603-0055

Thanks for reading!

Monday, June 19, 2006

Factoring Continues to Grow Around the World!

What does the news about Factoring around the world have to do with you?

I share these articles to help everyone see that Factoring is a powerful form of finance and is embraced globally. Factoring may be the solution you have been looking for!

Go read the latest article about Poland forming a Factoring association Click this Link

Want a free Factoring quote Click this Link

Questions 888-603-0055!

Thank for reading!

Friday, June 16, 2006

Factoring is for Growing Companies!

Factoring is for both small and mature companies in distress because of losses and new companies running out of money because of profitable growth. In both cases, conventional bank financing is not always available or not adequate. Because of today's economy, bank financing, especially for leveraged or young companies, can be tough to obtain.

You may be asking, how do you run out of money with profitable growth?

Easy, let's assume you are a manufacturer that needs to pay its suppliers within 30 days but your customers pay on average in 55 days. Worse yet, take a service company such as a temp-staffing agency that needs to pay its employees every 7 days and still averages 50 days on accounts receivable turn. Even with good margins, cash runs out quickly with any meaningful growth.

This may help explain why domestic factoring continues to grow every year. It could be the solution you have been searching for!

Get free factoring quotes by Clicking this Link

Have questions? 888-603-0055!

Thanks for reading.

Friday, June 09, 2006

Change is Coming are you ready?

It has been a little easier lately to get money from the banks. They have been providing access to funds for over a year now that would have been declined in earlier times.

As the saying goes, the tide is always changing. So is true with this current!

When more businesses start being told no, the tried and true will be here to provide your solution. That is right, Factoring has been here for ages and will be here waiting to save the day.

You may find that time is now. Click this Link for a free factoring quote

Have questions 888-603-0055!

Thanks for reading.

Monday, June 05, 2006

Factoring around the World

Factoring continues to become a popular choice of finance for companies around the world.

It is a powerful form of commercial finance that is being embraced globally Read this Article

How is your Cash Flow?

Want a free factoring quote? Click this Link

Have questions 888-603-0055

Thanks for reading!

Tuesday, May 30, 2006

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

Want a free Factoring quote Click this Link

Have questions? Call 888-603-0055!

Monday, May 22, 2006

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!.

Want a free Factoring quote Click this Link

Have questions? Call 888-603-0055!

Thursday, May 18, 2006

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!.

Want a free Factoring quote Click this Link

Have questions? Call 888-603-0055!

Monday, May 15, 2006

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!.

Want a free Factoring quote Click this Link

Have questions? Call 888-603-0055!

Friday, May 12, 2006

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!

Questions 888-603-0055

Wednesday, May 10, 2006

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!.

Want a free Factoring quote Click this Link

Have questions? Call 888-603-0055!

Monday, May 08, 2006

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.

Want a free factoring quote Click this Link

Questions: 888-603-0055

Thanks for reading!

Friday, May 05, 2006

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!

Wednesday, May 03, 2006

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!.

Want a free Factoring quote Click this Link

Have questions? Call 888-603-0055!

Monday, May 01, 2006

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.

Want a free factoring quote, get one by Clicking this Link

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

Thanks for reading!

Friday, April 28, 2006

The factoring industry continues to enjoy a double-digit yearly growth!

The stats are in on the total volume for factoring in 2005. Go and read the

Press Release here

Factoring is a powerful form of commercial finance. As business owners learn more about factoring, they will start to understand it is not frowned upon but embraced. The growth speaks for itself. Many companies would not be around if it were not for factoring.

Want a free Factoring quote Click this Link

Have questions? Call 888-603-0055!

Wednesday, April 26, 2006

Do you offer early pay discounts?

Do you provide an early pay discount option to your customers? A lot of companies do offer 2% net 10 or more.

The problem is that many times your customer will take the 2% and not pay in 10 days. It is obvious that increasing your cash flow is the objective; however your customers probably need to watch the cash flow also.

If you are offering an early pay discount you should look into factoring. You may find out that your discount is not much different than what you offer already. Plus the terms do not change for your customers and you are guaranteed the cash within 24hrs with a factoring account.

You can also use the constant cash flow to take early pay and volume discounts from your vendors which may wipe out all of your fees!

Want a free Factoring quote Click this Link

Have questions? Call 888-603-0055!

Monday, April 24, 2006

How did your cash flow this month?

How did your company do this month when it comes to cash flow? Why not let the question go; how has your cash flow been this year?

Did you sweat it out worrying you might not make payroll, get that vendor off your back, pay that tax bill that was due and it was a lot more than you expected?

For those of you that have a line of credit, did you get close to maxing out your line and have concerns that your line of credit is no longer an adequate facility.

For those of you that use your personal money or credit cards to fund your cash flow, did you have moments you thought about getting a loan or a line of credit from the bank because the pressure is mounting, but you are still unable to get the banks to lend you the money.

For those of you that have been sailing on smooth waters lately but you can see the approaching storm on the horizon, but you dread approaching your bank “again” for an increase because they complained the last time because your growth is heavily centered around accounts receivable and they are getting uncomfortable.

Well, you may say that the checks seem to always come in the mail just in time to get you over the hump. I say, just keep throwing the dice, the numbers will not come up one day if you keep pushing your luck!

I could obviously continue with the examples but you get the point. The fact of the matter is that Factoring could be your solution for these and most scenarios when it comes to inadequate cash flow. Get informed about this form of finance and spread the word to your business associates. It could be what they are looking for also!

Want a free Factoring quote Click this Link

Have questions? Call 888-603-0055!

Friday, April 21, 2006

Some Benefits of Factoring!

Did you know that Factoring is one of the oldest forms of financing there is. It enables companies to maximize their cash flow by receiving funds early for their receivables to be used for expansion, payroll, bill paying, or whatever the capital is needed for.

The Factoring process is very simple. You sell your accounts receivables for an immediate injection of cash, so factoring is not a loan. You generally get an 80% advance from your invoice immediately (higher advances are available for qualifying industries).

The remaining 20% (reserve) is paid to your company (minus your fees) when the invoices are paid. It's that simple.

In essence, you are out sourcing your credit and collection department. In doing so, you not only get your money more quickly but you will realize many other benefits as well:

1) Credit Investigation: Provides a safety net minimizing risk of doing business with slow-pay or no-pay customers. Through risk management your losses are minimized

2) Invoice Ledgering & Accounting: The Factoring company provides your company with full accounting of all activities done on your behalf with a simple ledgers, some Factoring companies have online access that allows this information to be downloaded from your on secured web site directly into your company booking software, thus reducing accounting cost.
3) Immediate Funding: Usually 80% of the invoice is funded within 24 hours.

4) Follow-up & Collections: The Factoring company follows up on the invoices to affect timely payments, which reduces your personnel and factoring cost. (time is money)

5) Aging & Other Reporting: Some Factoring companies have a State of the art reporting service available on a customized web site that you can access 24/7 .

Want a free Factoring quote Click this Link

Have questions? Call 888-603-0055!

Thanks for reading and have a great weekend!

Wednesday, April 19, 2006

What kind of Companies Factor?

Companies factor their invoices for many of reasons. It has been a major source of revenue for start up and rapid growing mature companies because it helps them manage their receivables and use the cash flow it produces to fund growth. But there are additional reasons.

A company that is not yet or no longer Bankable: It might be new, have credit or tax problems, or it might be "too thin" for consideration by conventional bankers. Factors routinely work through all of these issues to a satisfactory and economical solution for our companies of all sizes.

A company might be in or have been in Bankruptcy: Frequently a viable business, for legitimate reasons, has had to file bankruptcy. While conventional bank lenders will not consider them, factors may.

To Get Larger Contracts: By factoring their receivables, a company can purchase materials and labor necessary to perform where they might not have otherwise been able to.

To Qualify for Discounts: By purchasing in larger quantities, a company can often save enough by purchasing bulk to more than pay for the factoring cost. Include early pay options and this can wipe out all factoring cost.

To Reduce Clerical Overhead: Very simply stated, companies frequently cannot perform all the services that a factor can provide.

Direct Focus: Clients can focus on looking ahead while a factoring company manages collection.

Factoring is a simple and cost effective solution to all the above scenarios and more.

Why, then do all companies not factor? Because not all are structurally able.

Remember, Factoring is not a loan; it is actual purchasing of the client’s credit worthy invoices.

If a factoring company cannot take title to them, they will not purchase them.

Examples include UCC Filings by banks, IRS, or others which take actual title to receivables. Other examples include liens on invoices, guaranteed sales and government invoices where they reserve the "right not to pay". However UCC filings by banks and the IRS can sometimes be subordinated.

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

Get a free Factoring quote By Clicking this Link

Thanks for reading!

Monday, April 17, 2006

Know your Factoring Company!

Last month I posted a blog titled "Factoring Warning Before you Sign" you may want to read this post By clicking here

If you are thinking the post was to try and get you to use one of my recommended factoring companies, you are absolutely correct, however it is with reason.

I get paid by my factoring companies, so it is important that I deal with highly qualified factoring companies with a strong financial backbone which is managed by solid individuals. I know who they are and how they are financed. I hope you find value in this fact.

It is hard these days to trust people, and I can't force you to trust me. I can however try to give examples to back up the things I write about in hopes you will see my motives are to educate you about the Factoring Industry and in return, deserve a chance at your business.

So, I want to give you access to an article to help back up my Factoring Warning post. It is titled Who's to Blame?

Want a free Factoring quote Click this Link


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

Thanks for reading!

Friday, April 14, 2006

Can Factoring Make You Money?


Simply put, factoring helps businesses meet their cash flow needs by providing accounts receivable financing and management services. Many people view factoring as a short-term stopgap to plug the working capital hole that inevitably presents itself in almost every growing business. Although factoring can many times help a business refresh its working capital in the midst of a ‘cash crunch’, it can actually be a highly profitable long-term strategy. With adequate cash flow, a business has the ability to not only avoid stoppages in business, but to increase customers and sales. Cash flow is the lifeblood of any business and with out it, regardless of profitability, a business can cease to exist.

Factoring is one of the few forms of financing that can support rapid growth in a business. As the receivables increase, so in turn does the funding. Therefore, it stands to reason that by reducing working capital requirements, a company can more rapidly reach their long-term growth plans. The net effect is increased sales, increased production, and decreased stress.

Factoring is typically more expensive than traditional financing, however, the cost of factoring is usually significantly less than the loss of net profits that would have otherwise been generated by the substantial growth that it supports.

Next week I will talk about ways you may be able to use factoring with almost no cost at all.

Want a free factoring quote Click this Link

Thanks for reading and Happy Easter!

Wednesday, April 12, 2006

Questions about Factoring?

It seems to be human nature that once we do something over a period of time it starts to come natural to us. We tend to forget that the things we understand so well is understood by all.

Well that is obviously not the case.

I have been guilty of doing that in my field of Factoring, so that is why I am posting this topic. I want to make it very clear that if you have any questions at all about Factoring, please do not hesitate to call and ask me. No question is a dumb question, this form of finance is far to powerful for you not to explore it to the fullest and find out if it can benefit your company. It may be the solution you have needed all along.

If you already understand Factoring and are ready to get an account opened and just need to find the right Factoring company to partner up with, why not let us help. Get a free quote by Clicking this Link

If you are currently with a Factoring company and want to explore your options you may want a free quote by Clicking this Link We will get you access of up to 3 free quotes from a list of our highly recommended Factoring companies.

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

Thanks for reading!

Monday, April 10, 2006

Factoring in the Gulf

Factoring services are being launched in the Gulf, check out this article

Factoring is a powerful form of commercial finance that can put immediate cash in your hands by using your accounts receivable.

Want a free Factoring quote Click this Link

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

Thanks for reading.

Friday, April 07, 2006

Do not forget about the Previous post and Archives!

The goal and purpose of doing this blog about the Factoring industry is to help my readers get a better understanding about this powerful form of commercial finance. I also hope to get a chance to earn your business if the information helps you determine you may be a candidate for opening a Factoring account. I can't stress enough how much I recommend the Factoring companies I do business with and Free quotes are always available.

I also do not want the content of this blog to lack in information, tips and good ideas. That is why I am suggesting you make sure you look back at all of the past articles in previous post and archives. You may find that one blog that provides you with valuable information.

Factoring is unknown to many business owners and many need to know it is available. So please share the fact that this blog exist with your colleagues.

I hope you have a wonderful weekend.

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

Thanks for reading!

Wednesday, April 05, 2006

What's A Growing Business To DO?

On this post I am sharing an article written by Mr. Larry Stephenson. He is with one of my highly recommended factoring companies. It is a worthy read, enjoy:

Consolidation in the banking and commercial finance industry has made it even harder for the small to medium size business to be successful. Let’s put aside for our purposes here all the other challenges this group of entrepreneurs’ face.

The big banks have no interest in the small manufacturer, distributor or service provider because lending to him or her is just too risky in their eyes. Wall Street would punish them severely for not posting ever increasing earnings as well as operating efficiencies. The big banks must stay in their comfortable environment of lending only to the nearly risk free companies or to the consumer where fees and costs can be readily passed on to the user.

Well then, would it not make sense that if the big banks don’t want the small to medium enterprise then surely the ever growing population of small community banks would embrace their needs. Today these new community banks are popping up seemingly on every busy corner near large shopping areas. Unfortunately, I’m afraid you can’t look for help here unless all you’re looking for is a fully collateralized real estate loan. Safeguarding deposits and making real estate loans are their stock and trade. Loans to actually support the success of these smaller enterprises we’re discussing are not made here. The doctors, lawyers and real estate people who form their board of directors are the original bank investors and they are looking for steady conservative growth. Growth, safe growth, which will someday in the future provide the owners with a payday when they sell to a larger bank who will then sell to the "Big" bank.

It’s nearly impossible to sustain or find a business opportunity, other than at the retail level, where the entrepreneur can provide all of the cash needed to run and grow the company. The small to medium business enterprise needs working capital financing in almost every case. Success in this size business is its own worst enemy as far as working capital needs is concerned. Growth in sales requires increases in inventory levels to support this very growth. And, success in growing sales directly multiplies the investment needed in accounts receivable as well. Success in business, as you can see, is directly related to the accompanying growth in accounts receivable and inventory and the inherent need for outside working capital borrowing. Does it not then make sense to find a way to margin the realistic values of these receivables and possibly inventory in such a way as to support this growth?

The important job of providing working capital for these companies rests with the factors and finance companies who best understand these businesses and their borrowing needs. As touched on above the opportunity to provide this financing is the product of the banking industry abandoning these entrepreneurs for, in their mind, more fertile ground.

The factoring and finance company industry is made up of a few very large players and a large number of smaller niche players with individual areas of expertise. The large players, even in this financial sector, have become so large they too are ignoring the needs of the small to medium business. They now prefer to only do business with companies with revenues in excess of $10 to $15Million. They also steer a wide path around enterprises just starting up or facing financial difficulties whether these difficulties are determined to be short lived or more serious.

The real task or opportunity to finance these businesses with revenues under $15Million or experiencing short term financial stress rests with the medium to smaller national and regional factoring and finance companies; which would appear to be a good match of needs and similar sizing.

These sources of finance have the financial strength to support the growth and working capital needs of their borrowers. The primary reason they are able to do what the bigger institutions shy away from rests with the attitude of their senior management. These individuals are able to look at struggling companies and approve a borrowing facility that takes into consideration all of the pluses and minuses. The loan can be made if the borrowing company has good, honest management willing to continue to work hard to be successful. They are able to look deeply into the company and its management finding innovative ways to structure the loan even when the company is losing money or the IRS or other challenges stand in the way. With the proper structure they can work with companies having financial difficulties until they have overcome these difficulties or grown to such a size that they can now borrow from the larger institutions.

Companies finding themselves in such a situation need to seek out this caliber of financial support. Usually one of your trusted advisors can get you in touch with such a company. Your accountant or lawyer or even a friendly competitor should have knowledge of where to secure this financing. You may even be able to obtain this knowledge from the bank that has declined your most recent request for financing.

Don’t despair, there are lenders out there very much interested in the success of these manufacturers, distributors and service providers and willing to provide the working capital financing needed to grow the business.

If you would like a free factoring quote Click Here

Want to speak to me personally 888-603-0055

Thanks for reading!

Monday, April 03, 2006

April Fools Day and your UCC filing!



Every year I have this competition with my Mom on April fools day, she tries to get me and I try to get her.

Oh come on, no way can you fall for an April fools joke every year knowing it is coming. Well every year I think that, but some how she always seems to set the trap and I step right in the middle of it. I spend all day avoiding the snare and before you know it I am hanging upside down, dangling from the rope as we both howl in laughter at my annual defeat!

What does this have to do with my UCC filing you ask? Well let me tell you:

Just like my annual defeat at the hands of my Mom, several times a year we experience an April fools joke in the Factoring industry, and it is not always April.

To Factor your receivables, the Factoring company must have a UCC-1 on your Accounts Receivable. We will ask up front if any financing is currently in place. Many times the answer will be yes and we will ask if the Accounts Receivable are pledged as collateral (UCC-1) and the answer will be a no.

A search will be done for liens and APRIL FOOLS a UCC-1 will show that there is indeed a lien against the Accounts Receivable.

Now, I am not implying this was done intentionally. The applicant was not aware that the bank applied a blanket lien to cover the loan or loc.

If you currently have a loan or loc in place and still need additional working capital, Factoring can be the solution you need. Just double check your UCC filing to make sure your receivables are available, it can save you much hassle.

Please take note that a UCC-1 against your Accounts Receivable does not mean you will not be able to Factor. A subordination (release) or a buy out is done on a daily bases in the Factoring industry. Knowing this up front however will help the Factoring company better determine your chances of this.

Get a Free Factoring Quote today Click for free Quote

Want to speak to me personally 888-603-0055

Thanks for Reading!

Friday, March 31, 2006

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!

Wednesday, March 29, 2006

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!

Tuesday, March 28, 2006

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!

Friday, March 24, 2006

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!

Thursday, March 23, 2006

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!

Wednesday, March 22, 2006

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

Tuesday, March 21, 2006

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!

Friday, March 17, 2006

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!

Thursday, March 16, 2006

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.

Wednesday, March 15, 2006

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

Thursday, March 09, 2006

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

Tuesday, March 07, 2006

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

Monday, March 06, 2006

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