Understanding the Typical Types of Accounts Receivable Factoring Accounts receivable factoring, aka invoice factoring, is a financial tool used by small and medium-sized businesses to help them maintain steady cash flow. Businesses convert their outstanding company invoices to immediate cash flow through a third-party financial intermediary...
The federal government wants to do business with small businesses and prioritizes contracts to these types of entities. In Fiscal Year 2021 alone, the government awarded about 26% or $154.2 billion in federal contract dollars to small businesses. These vast sums will go for a wide...
Small and medium-sized businesses turn to invoice factoring as a way to manage their cash flow. The ability to obtain immediate cash, instead of waiting 60+ days for their customer to pay an invoice helps business owners fund operations, pay employees, purchase materials and supplies,...
Businesses, large and small, will face cash flow problems at one point or another within their supply chains. Sufficient financing options for these businesses are increasingly difficult to come by as supply chains continue to become increasingly complex and evolve in the wake of tighter...
Cash flow is the lifeblood for any business. It is needed to sustain operations, meet financial obligations, pay employees, maintain adequate inventory levels, and enable growth. Generally, revenues and profits will not coincide with cash inflows and outflows meaning that a business can be profitable;...
The uncertainties facing small and medium-sized businesses – difficulty in obtaining loans, rising interest rates, and high rates of inflation, to name a few – have created many situations where businesses need to consider alternative forms of business funding, such as invoice factoring, to fund...
Ensuring sufficient funding is in place to cover payroll and operating expenses is perhaps the most important task for a business owner. No matter the type of business or industry, payroll funding problems must be avoided, and the best way to do this is to...
Successful factoring brokers and ISOs who understand the importance of prequalification and the deal submission process for invoice factoring get more deals approved faster and with fewer problems. They develop a strong working relationship with the factoring companies they deal with and build a solid,...
When applying for business funding, you’ll need to provide supporting documentation as part of the application and due diligence process no matter the type of financing. One item lenders and alternative funding sources, such as factoring companies, will request is your company bank statements. Bank statements...
The recent bank failures, finance regulations, and an ever-changing economic climate are impacting lending practices all across the country. Lending from U.S. banks and other traditional financial institutions has contracted significantly indicating a tightening of lending standards. This has resulted in more bank turn-downs and...