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 31, 2006
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!
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
Want a free factoring quote Click this Link
Thanks for reading!
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
Want a free factoring quote Click this Link
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!
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!
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
Want a free factoring quote, get one by Clicking this Link
Questions 888-603-0055
Thanks for reading.
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
Want a free factoring quote, get one by Clicking this Link
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
Want a Free Factoring quote? Get one by Clicking this Link
Questions: 888-603-0055!
Thanks for reading!
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
Want a Free Factoring quote? Get one by Clicking this Link
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:
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!
That is a smart accountant!"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"
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!
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!
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.
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.
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!
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!
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!
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!
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
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!
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!
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!
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