Five Myths About SMB Invoice Financing, Debunked!

5 myths about invoice financing debunked:

cash flow,factor bid,invoice finance offers,factor app,invoice financing,accounts receivable finance,SMB finance,alternative lending for small businesses,business financing,working capital,receivables finance

 

Myth: 1 – Expensive – “A rate of 1.2% per month equates to 18% annually. That’s a very high interest rate compared to what my bank will give me.”
Debunked – True, rates are around 1.2% per month. However, receivables financing can offer no origination fees, no prepayment fees or un-used line fees often seen with a traditional line of credit. There is also no commitment; you can finance as needed. While rates on a traditional loan may be lower, the terms and conditions of the loan may cost you more in the long run, including the waiting and time to get funds.
Invoice Financing is based on the creditworthiness of your customers, instead of your business’s credit. This means if you’re working with larger clients that are more established, factoring will enable you to extend terms to remain competitive amount your competitors.

Myth: 2 – Appearance – “A company that sells invoices is in trouble with traditional sources of credit, and needs alternatives lending to keep the doors open. This may show my customers that we have very slim margins and are not making a ton of profit off of the business relationship.”
Debunked – Invoice Financing grows with your business. Traditional lenders like banks tend to look at the past and have stringent requirements and paperwork to qualify for a commercial loan. Financing your receivables actually keeps up with growing sales volume by extending you larger amounts of upfront capital as your accounts receivables increase. Invoice factoring is fast and makes your company more flexible to meet the demands of larger customers.

Myth: 3  Customers Relations – “I have been doing business with customer-ABC for the past 4 years and don’t want to jeopardize our relationship by adding a 3rd party payment collector. A financing company will pester my customers for payment, which will damage the client relationship.”
Debunked – As business professionals your clients understand that when you’re factoring it’s because you’re extending terms so they can pay you at a later date. They’re essentially using your money to grow their business faster, so you may as well use the factor finance company’s money to grow your business faster.  Some factors will also stay out of the transaction all together, this type of option is very popular among transportation freight brokers.

Myth: 4 – Too Early for Credit – “Our new SMB business has little to no credit history, and as a result we can’t get financing from our local bank. We heard that Invoice Financing companies have the same credit requirements!”
Debunked – Invoice Financing companies base their decision using your customers payment and credit history, not yours. Your customer (the debtor) is the one responsible for pays the invoice, so factor finance companies are mostly interested in their creditworthiness overall.  Larger, Fortune 1000 companies and government entities are the best customers for a small business to factor finance their receivables from because there is plenty of information publicly available to check their payment and credit history, allowing a vendor to piggyback on their credit rating, while increasing their own business credit history more quickly.

Myth: 5 – Loss of Control – “All payments coming to my business are routed through a 3rd party. I lose control of my accounts with a factor finance company. Plus I get stuck in contracts that restrict business rather than helping.”
Debunked – True, payments need to be made by your customers directly to the financier’s account. This is done for security purposes; the invoice is collateral for the advanced funding, and your factor finance company collects from the customer when they pay. At the same time, not all Invoice Financing companies are created equal.
When factoring, only customers that you want to finance must make accounts payable to your factor finance company. Receivables from customers that you choose not to finance can still pay you directly in the agreed upon time frame, usually net-30 or longer. All factor finance companies are a little different. With some there is not long term contracts and you can sell the receivables you want, when you want, which works great for seasonal business and oversize orders. Having to deal with a delayed payment cycle can strain existing resources and add unnecessary stress to your business. Debunking the myths of invoice financing can bring working capital to your business quickly and open new opportunities for many B2B and B2G small businesses.

Ready To Start: – Make sure that you’re getting a few offers from competing factor finance companies before you begin. Visit www.factorbid.com and within an hour you’ll have competitive offers to earn your business an buy your accounts receivable invoices for immediate cash. Factor bid is fast and easy and only takes about 2 minutes to start. You’ll be contacted by a few of the top factor finance companies that specialize in your specific industry within the hour of completing your customer application. You’re under no obligation to factor. Check out factor bid and get the knowledge and leverage you need to get the best deal when factoring your accounts receivables for immediate cash flow!

On The Go – Download Factor App – for fast and easy invoice financing!

download factor app,finance,factoring,receivables,debtor finance,factorbid

Factor App for Apple iPhones

Factor App for Google Android Smartphones

Online Business Finance Marketplace – Increase your Business-Cash-Flow today!

Are you facing cash flow gaps in your small to mid-sized business? Turn your business assets (invoices) into immediate working capital. Get Cash for your invoices by factoring.

Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount.  A business will sometimes factor its receivable assets to meet its present and immediate cash needs.

factoring,finance,working capital,cash flow,capital,cash flow,factor financing,accounts receivables,offers to buy your invoices,invoice financing

Don’t wait 30+ days to receive payment, unlock cash that’s trapped in your accounts receivable invoices. Start factoring and get paid within 24 hours for invoices.

Get Started:

Go to Factor Bid – click the Get Started button and within the hour you’ll have factor finance companies competing for the opportunity to earn you business and provide you immediate working capital for your invoices!

On the Go:

Download Factor App for your Android and Apple Smartphones!

Paypal invoicing, tap unpaid invoices for immediate business cash

Did you know you can invoice customers using Paypal? Based on popular articles and groups we’ve discovered, Paypal has become a simple and great tool for invoicing.

The SBA has some helpful tips for small business owners, when invoicing customers for payment. According to a 2012 Wall Street Journal survey, 64 percent of small businesses had unpaid invoices more than 60 days old while 20 percent say the problem is worsening.

The overall effects of unpaid invoices is particularly troubling for small business owners – impacting;

  • business growth
  • hiring
  • updates to equipment
  • expansion
  • product development
  • not to mention your ability to pay bills on time

trade credit,accounts receivable financing,PO Finance,factor finance,factor bid,factor app,finance.asset based lending,no new debt

Paypal has done a good job of making it easy to invoice clients. They remind you to add in details that your customers may need to process your invoices more efficiently.

The Standard information includes your billing address, date and other necessary line items, but don’t forget that some clients may require additional details. Details like a contract number, purchase order, tax ID or account number to help expedite payments. Check with new clients before invoicing them to make sure you are giving them the details they need.

It’s also a good idea to attach your work order, statement of work, contract, or other document that outlines exactly what you agreed to deliver. Make sure the documents are signed. This will help your client’s accounts payable department get the invoice approved and paid.

Avoid the lag:

Help your customers process payments with ease by offering online payment options. Amazon Payments, PayPal and Intuit all offer online payment services that can help you invoice customers faster.

Invoicing Stats:

Up to 64% of 850 small businesses surveyed last year – had less than $5 million in annual gross sales, reported having invoices that went unpaid for at least 60 days, and 20% said delinquencies were getting worse.

Over the past four years, big companies such as Apple Inc., Wal-Mart Stores Inc. and Ford Motor Co. have generally increased the number of days they take to pay vendors, according to Charles Mulford, the director of the Georgia Institute of Technology’s financial reporting and analysis lab.

“If you’re working with one of these large companies as your only customer, they have the power. They can go to somebody else, but you can’t go anywhere,” says William Dunkelberg, chief economist of the National Federation of Independent Business, a small-business lobby.

A Ford spokesman responded that 80% of the company’s $75 billion in annual purchases are paid within 40 to 45 days, a period that hasn’t changed in several years, and the rest are paid based on standard industry practices.

Some business owners say there’s often a trickle-down effect from slow- pay customers. “We have to go back to our suppliers and say we need to extend our terms,” says Chris Shult, president of Bevco Engineering Co., a 60-employee company in Sussex, Wis., that builds control systems for conveyors, MRI machines and other systems.

Mr. Shult says at least one of his Fortune 500 customers, whose name he declined to disclose, is pushing for a 120-day payment term. “The choice they give you is take it or leave it,” he says, adding that the company has invoices outstanding ranging from $50,000 to well over $100,000 apiece.

Since over 60% of small business have unpaid invoices, regardless of how you deliver the invoices, and how detailed and complete your invoices are, you may still be a victim of slow-paying customers. As big companies continue to hoard their cash to stockpile their own working capital, you can circumvent your dependency on slow-pay customers by factoring your invoices.

Tap Unpaid Invoices For Immediate CASH:

Factoring and “Purchase order financing” “trade credit” and “accounts receivable financing “ have emerged as important tools in helping small businesses, importers, suppliers, wholesalers, and distributors to take advantage of profitable deals.

Factor Finance Companies buy your unpaid invoices for immediate cash. You can get paid within hours of invoicing a customer for payment.

*It’s recommended that you get a few offers when choosing a factor finance company that best fits your working capital needs.

Factor Bid – gets your company a few competitive offers to purchase your accounts receivable invoices (unpaid invoices) for immediate cash. Get the best deal when factoring and the most money for your invoices, fast!

Working Capital when you need it…Cash Flow as soon as today for unpaid invoices. Give it a try, it’s FREE! You’re under no obligation to factor.

Visit www.FactorBid.com and select the ‘Get Started’ button.

 

Cash Flow Planning Today’s Smart Business Parachute

Cash flow planning today, your smart business parachute. Nice to have before you need it! Why do some business owners wait until the last minute to fix cash flow gaps that their business is experiencing?

For example; You extend terms to a good trustworthy customer, expecting to get paid in 30 days from the date of delivery. At first the customer is amazing, everything is going great and running smoothly between your two companies, until one day when all of a sudden their payment doesn’t arrive as promised. You figure, ahh it must be a slight oversight on their end. So you make a note to give ’em a call.

A week passes and still no check. So you call and email again and this goes on for about 20 more days. Your note reminding them to pay you now feels more like a ransom letter than a friendly reminder.

So what happen? Well no one really knows at this point. Yes you called and emailed Accounts Payable and they promised the check was in the mail, but still no check. Their slow-pay is now really starting to affect your payroll and business operations. I mean this is a big customer and their invoice amount due is enough to cover a whole month worth of payroll.

There are two ways this usually plays out:

1.) Your customer finally sends the check, 28 days late and you continue with business as usual, however now each time you invoice them after delivery, you have this gut-wrenching feeling in the pit of your stomach, wondering when and if they’re even going to pay. Will you need to borrow money off your personal credit card again to cover payroll if their check is late again or worse yet, never arrives?

2.) The relationship was already fragile and this was the straw that broke the camel’s back.  Your customer is offended that you called and emailed so many times, almost implying that they weren’t good for the monies owed or something.

cash flow,accounts receivable invoices,working capital,factor financing,factoring,asset based lending,invoice finance,finance,best factoring company

In any event, either of the two above scenarios adds stress to a business relationship and can usually be avoided altogether. Yes of course it can, if customers would just pay on time, however it’s a proven fact that some customers just slow-pay and that is how it’s going to be. So knowing that some customers just have it in their business DNA to slow-pay, how can your business protect itself from the negative side affects of unpredictable cash flow in your business?

The answer, prepare your cash flow parachute just encase this ever happens to you. Don’t be caught by surprise and interrupt a good thing you have going at your business. You shouldn’t be punished for working hard because one or more of your customers had slow-pay DNA.

You can unlock cash tied up in your accounts receivable invoices by factoring. Factor finance companies buy your invoices for immediate cash so you get paid within hours of invoicing customers. You won’t have to worry about slow-paying customers, you can continue working hard and growing your business as usual.

Factoring enables you to cover;

  • payroll
  • expenses
  • and invest your earnings faster to help secure more new customers and grow your business faster.

Factor financing grows with your business. The larger your business gets the more immediate capital you can access from your invoices. You don’t need to create friction between you and slow-paying customers, all you need to do is focus on what you do best, running your business and creating new customers relationships.

It’s recommended that you get a few offers when choosing a factor finance company that specializes in your industry. Visit www.factorbid.com and select the ‘Get Started’ button to quickly and easily get competitive offers to buy your invoices for immediate cash. When Factors compete, You Win!

Source of funds and your business growth

Once you know your needs, you need to determine where the money will come from (source of funds). Don’t overlook this important piece of your business planning. Of course the idea is for your business to generate enough cash flow to pay for business expenditures plus your personal living expenses and more.

Assets:

To start – list any assets and cash that you are contributing to start-up or for expansion. Show the full amount of any lease, loans, investments by partners or other investors, etc.

Personal Requirements:

List funds you need to meet your personal living expenses. This will help in determining your projected cash flow each month or quarterly.

working capital,business capital,cash flow,financing,cash flow gaps,factoring,best factors,accounts receivable invoices

Cash Flow Projections:

One of the things to remember in preparing your business cash flow projections is you’re not trying to determine profit or loss yet, but instead the timing of money coming in and going out of your bank account.

Sales Forecasts:

The sales forecasts you’ve done are formulated to carry forward to your ‘Cash in’ – providing an estimate of cash in your business. This helps demonstrate any terms you may provide to your customers for payment.

example; If you agree to accept payment in 30 days, a sale in February will show up as cash to your business in March under line item “Accounts Receivable”

Cash Flow Gaps:

If at the end of your lists, you see cash flow gaps, places where you may be short on funds during a specific time of the month / year, you may need to consider alternative financing (factoring) to help cover those gaps.

Remember sales may vary during peak sales season vs low activities that can occur during slower times of your business cycle or even when vacationing takes place.

Accounts Receivable:

Accounts receivable is a legally enforceable claim for payment held by a business against its customer/clients for goods supplied and/or services delivered in completion of the customer’s order. These receivables are generally in the form of invoices raised by a business and delivered to the customer for payment within an agreed time frame. Accounts receivable is shown in the business balance sheet as an asset.

Factor Financing Receivables:

Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. A business will sometimes factor its receivable assets to meet its present and immediate cash needs.

Compare Invoice Financing Offers.. Free:

It’s recommended that you get a few competitive offers when deciding which factor finance company best fits your business financing needs. Factoring your receivables will help your business access immediate source of funds and cover any problematic cash flow gaps.

Factor Bid:

Factor Bid is a free online resource for small to mid-sized businesses. Visit www.FactorBid.com to get started comparing offers from competing finance companies to buy your accounts receivable invoices for immediate cash. No more waiting Net30 or Net45, get paid for your accounts receivables within 24-48 hours.

Factoring and your Canadian Accounts Receivables and U.S. Factors

Factoring your Canadian receivables. When dealing with a Canadian client a U.S. based factor must ask themselves what do I need to be concerned about when when buying Canadian receivables?

  • Taxes
  • Acceptable forms and form type
  • Additional licencing needed

DOCUMENTATION:

Material changes are rarely required when adapting a U.S. Factors documents to purchase Canadian receivables or take security on Canadian collateral.

Some adjustments are desirable to reflect differences in Canadian legislation and procedures, for example; Provisions that deal with the consequences of the seller becoming subject to the Bankruptcy Code should refer to the relevant Canadian bankruptcy and insolvency legislation and, since Canada has not adopted the ACH system, the factor should be given the ability to debit its client’s bank accounts by way of electronic transfers. Clauses should also be added to the factor’s standard forms to take into account the various issues described in the balance of this paper. All in all, neither the factor nor its seller should find that any of these changes raise significant business issues.

LICENSING:

It is important to appreciate the difference between – carrying on business in Canada on the one hand and – doing business with Canadians on the other. As long as a U.S. factor finance companies and its employees and agents do not carry on business on Canadian, but instead only deal with Canadian sellers and account debtors on a cross-border basis, through channels like phone and email.

BANKS:

This is of particularly import to U.S. banks since they are prohibited from carrying on business in Canada without complying with the licensing requirements of the Canadian Bank Act.

REGULATORY AUTHORITIES:

Canadian regulatory authorities have acknowledged that non-Canadian companies can purchase Canadian receivables, lend to Canadian borrowers and take security over Canadian assets without becoming subject to Canadian licensing requirements – unless they “cross over the state line” and carry out business in Canada.

TAXATION:

A U.S. factor will generally not become subject to Canadian
taxation on the income it earns from purchasing Canadian receivables so long as it does not; “carry out business in Canada” – NOTE: Simply purchasing Canadian receivables, or opening a Canadian bank account, should not in and of itself result in carrying out business in Canada.

With respect to licensing, the factor should not negotiate or sign business agreements in Canada. It is also generally important for the factor to avoid engaging Canadian based employees or agents, since their activities will be attributed to the factor. For this reason, if a factor engages a Canadian to provide leads to possible clients, the underlying agreement should reflect that the Canadian is an independent contractor who has no ability to bind or contract for the U.S. factor, and that the parties have neither a principal/agent nor an employer/employee relationship.

Additional flexibility regarding Canadian employees and agents is available to a factor that can take advantage of the Canada-U.S. Tax Treaty.

WITHHOLDING TAX:

Canada has almost eliminated withholding tax on most cross-border payments of interest between unrelated parties that act at arm’s length. U.S. factors can therefore purchase most interest and finance charge components of Canadian receivables.

PERFECTION, PRIORITY & ENFORCEMENT:

Other than Quebec, every province and territory of Canada has personal property security legislation that is modeled by Article 9 of the U.S. Uniform Commercial Code. The rules relating to perfection, priority and enforcement of purchases and security interests are therefore very similar to those found in the United States. While the rules are not perfectly identical – such as the need in Canada to search and file based on the location of the collateral or of the seller’s/debtor’s chief executive office, rather on the nature of the seller/debtor entity – these differences generally do not raise practical problems. And even the differences that do exist are starting to fade as various Canadian jurisdictions adopt additional aspects of the Article 9 regime.

The Canadian Federal government has a super-priority lien over the entirety of a tax payer’s property for – certain amounts the taxpayer withholds from its employees’ income but fails to remit to taxing authorities and certain types of unremitting sales tax. This lien type is not required to be registered. Factors should monitor compliance with these tax obligations – either with the client or the tax authorities – since the lien will generally rank ahead of a factor’s security interest on its client’s assets. Fortunately, this lien should not defeat the factor’s interest in receivables it purchases by way of a “true sale” without notice of the lien.

It is generally easier in Canada to obtain an enforceable guarantee from an obligatory corporate affiliate – the guarantor’s incorporating statute and articles should be reviewed but will rarely raise an issue. With respect to individual guarantors who reside in Alberta, their guarantees will be valid only if they complete a statutory form in the presence of a lawyer.

WHAT ABOUT QUEBEC:

Quebec’s laws are modeled on by Civil Code of France, and differ significantly from those of the U.S. and the rest of Canada. Perhaps the four most important distinctions for a U.S. factor are: (1) the purchase of a single receivable is perfected by giving notice to the account debtor (rather than by registration), (2) security over the seller’s other assets is created by “a mortgage or security held by a creditor on the property of a debtor without possession of it” under special language that should be added to the factoring agreement, (3) a standard form agreement with a Quebec counter party must be in French unless it contains a provision (which should be in both languages) in which the parties agree that the agreement must be in English only and (4) contracts with Quebec account debtors should be reviewed for provisions that prohibit their assignment, since Quebec legislation does not override anti-assignment clauses.

USURY:

Canada’s federal usury legislation is set at the relatively high rate of 60 percent – calculated in accordance with generally accepted actuarial practices and principles. In determining whether a contract rate is usurious, all related charges and expenses relating to an extension of credit will be taken into account, including interest, penalties, fees, commissions, costs and various administrative payments. A properly drafted agreement should provide that any contravention is unintended and that excess payments will be reimbursed or applied to other outstanding obligations.

INTEREST:

Canadian legislation requires interest to be at an “annual” rate (i.e., 12-percent yearly rather than 1-percent per month). If the provisions of a factoring agreement calculates interest on different basis – such as using a 360 day / year – a formula is commonly added to permit calculation of the equivalent annual rate.

CURRENCY:

U.S. factors purchasing Canadian receivables should consider how to manage currency risk inherent in using U.S. dollars to acquire the Canadian funds needed to purchase ‘Canadian dollar receivables’ – since it’s likely that the exchange rate prevailing when the factor obtains the Canadian funds will change by the time it receives Canadian dollars from the account debtor.

TIPS –  Among the options factors use: (1) entering into a currency hedge, (2) passing exchange risk to the seller through a clause in the factoring agreement and (3) funding a Canadian dollar bank account in a Canadian or U.S. bank, then using the account to purchase receivables and receive payments (so that exchange losses and gains don’t arise every time a receivable is collected on – but instead only when funds are eventually converted to U.S. currency)

COURT CURRENCY:

Canadian courts must render and award judgments in Canadian dollar. This may result in a currency exchange loss if a factor sues for amounts owing in another currency, such as U.S. dollars, the factor obtains a judgment for the equivalent Canadian dollar amount and/or the Canadian dollar weakens between the date of the judgment and the time of payment. The factoring agreement should therefore contain a provision that requires the seller to indemnify the factor for such losses.

CREDITOR-FRIENDLY:

A U.S. factor is able to bring legal proceedings in Canada. It will find Canadian courts relatively creditor-friendly for a number of reasons: (1) court costs are determined on the English “loser-pay” model, under which the unsuccessful party pays a portion of the prevailing party’s legal costs, (2) commercial matters are almost always decided by a judge without a jury (with or without a jury waiver in the factoring agreement), (3) punitive damages are unusual, and in any event generally much lower than in the U.S. (4) U.S. judgments are generally enforceable in a Canadian court so long as the defendant received proper notice of the action and an opportunity to defend.

GOVERNMENT OBLIGATION:

The obligations of certain Canadian governments – such as the Province of Ontario – are freely assignable (subject to the terms of the underlying agreement). However, receivables owing by certain other provinces or by the federal government may not be assigned without obtaining consent and following statutory procedures.
CANADIAN – U.S. FACTORING:
Factors in the U.S. have found that the Canadian legal, tax and regulatory rules are relatively favorable, not unfavorable and generally do not impede cross-border factoring of Canadian receivables.
BEST IS BEST:
It’s recommended that you get a few competitive offers from factors to buy your accounts receivable invoices. If you’re a Canadian Small to Mid-Sized Business looking to factor your accounts receivable invoices; visit www.FactorBid.com to get started finding the best U.S. Factor eager to earn your business today! If you’re not shopping your Canadian receivables you may not be getting the best deal available!
Grab our Mobile Factor Financing App for Busy Companies on the Go!
download factor app,finance,factoring,receivables,debtor finance,factorbid
Download Factor App for your Apple Smartphone
Download Factor App for your Google Smartphone

 

 

Cash Flow Plan B – business finance awareness

What is your company’s Plan-B and does it cover cash flow gaps caused by slow-paying customers?

capital,cash flow,business line,loan,finance,factor bid,factor finance,invoice financing,asset lending,plan b financing,receivables factoring,best factoring company

What would happen to your business if;

  • A vendor demanded you pay COD (cash on delivery) and won’t extend terms
  • Your Bank decides to reduces your credit line
  • A client changes its policies from paying Net-10 to Net-45

If your company’s cash flow relies on everything happening perfectly, you have a disaster waiting to happen!

When the unexpected comes knocking you won’t have time to maneuver or look for other options. It’s a good idea to have a Plan-B, that way you won’t be caught off guard by events you can not control.

*Remember – you can’t make payroll or pay vendors with an IOU. So when the unexpected happens you need the ability to keep moving forward. Convert money owed to you from customers to immediate working capital, so you don’t have to worry about cash flow gaps and unexpected annoyances.

With Factoring you won’t need to chase customers each week for payments. The factoring company assists in collecting on-time receivables and increasing cash flow so you can focus on bringing in new customer accounts and the day-to-day business operations.

Factoring gives you access to professional credit checking tools so you can know if a potential new customer is a good candidate for extending terms to.

No more worrying about sudden interruptions, because your plan B provides you access to fast cash when you need it most!

It’s recommended that when choosing the best factoring company, you get a few offers. Factor Bid is a free small business resource that enables your business to Compare Invoice Finance Offers.. Free! Get the knowledge you need to get the best deal when factoring your accounts receivable invoices for immediate cash!

Do your customer slow-pay on purpose, you may be surprised at who’s admitting to it.

Is the long tail of your suppliers killing you? The growth of your company may be suffering due to the actions of slow-pay customers. This is not acceptable and we know a simple and easy way to fix slow-pay accounts.

Over half (57%) of international businesses surveyed by Basware and MasterCard admit to having actively delayed paying their suppliers in the past 12 months.

This can be solved with by enabling working capital optimization also know as Factor financing (receivable invoices) which allows buyers to better manager their cash flow and for suppliers to get paid sooner.

“When three quarters of businesses have more than 50 suppliers and about two thirds send and receive more than 100 invoices a month, a culture of late payments impacts individual organisations as well as the economy as a whole,” said Esa Tihilä, CEO at Basware.

SLOW-PAY RECEIVABLE ACCOUNTS ECONOMIC SUPPLY CHAIN KILLER

business working capital,supply chain,slow-pay,invoice finance,factoring,receivable invoice finance,debtor finance,factor bid,factor app,finance,working capital,asset lending,best factoring company

When asked –

  • Three quarters (70+ per cent) of decision makers think late payment is a fact of business and will always happen, despite 90 per cent acknowledging that payment delays have wider repercussions for businesses, such as the ability to pay staff or reduce investment.
  • Only about 1 in 4 businesses today have automated processes to manage payments efficiently
  • Two thirds (67 per cent) acknowledged that they have used payment terms as a strategic tool to help manage cash flow

If your business is tired of slow-pay accounts and strenuous cash flow gaps then click here to compare invoice finance offers..FREE! Unlock cash when you need it, as soon as you need it! More working capital at your fingertips in a matter of a few hours.

NOTE: LOUDHOUSE surveyed 1,015 strategic decision makers with a view of both Accounts Receivable and Accounts Payable processes and issues across ten countries (Sweden, Finland Norway, Germany, UK, Denmark, Netherlands, Belgium, US and Australia) in mid-2014 to gather the above metrics.

Here is what you need to ask yourself when seeking more profit from your business

A businesses desire to scale shouldn’t be entirely based on demand for their product or service. Demand will certainly play a large roll in how or when a business will scale. To Scale your business effectively means anticipating demand, not reacting to it.

If a company acquires two or three new clients and then realizes it can not fulfill their demands, business growth efforts are likely to collapse. This kind of activity leaves room for competition to move in and service unhappy or under-serviced customers.

predictable cash flow, future cash flow,factor bid,invoice finance,factoring,receivables finance,finance,accounts receivable invoices, factor app

Predictable cash flow provides a business the flexibility it needs to stay competitive, grow quickly, fulfill new customer demands and generate more profit.  Do you know what your predictable cash flow is?

How Does A Business Realize Predictable Cash Flow:

Build in sustainability and scalability in order to make sure future cash flow is predictable. Examples;

  • Lock in customers – Offer incentives, sign contracts, improve customer experience to ensure customers are incline to work with you over the long haul.
  • Implement a consistent sales and marketing process – Design a process, train  your sales staff, put performance metrics in place and hold your team accountable.
  • Make delivery of your products and services scalable and repeatable – learn from your mistakes, identify cash flow gaps within your sales cycle and figure out how to eliminate existing problems.
  • Free up cash flow from slow paying customer accounts – Factor finance your accounts receivable invoices to get money your customers owe you today, instead of waiting 30 or more days.
  • Once future cash flow becomes more predictable, fulfilling new larger client accounts and efficiently servicing existing client accounts becomes much easier.

Don’t worry about the cost of doing business along the way. It takes money to make money and scaling a business successfully is challenging; mistakes will be made and you may even overspend occasionally. Learn from your previous business activity and implement a strategy to avoid similar mistakes the next time around. Hire people to help you strategize, attend local small business events to discover new ideas and most of all keep a positive frame of mind.

To get access to immediate working capital you may need to pay as you go so you can profit as your grow! Leverage assets within your business, like your accounts receivable invoices or promised payments, so you can increase cash flow and go after larger new customer accounts.

*Free Small Business Finance Resource:

When you’re ready to unlock money trapped in your accounts receivables, visit www.factorbid.com to compare invoice offers to buy your invoices. Factor bid is a free service for small businesses. Factors compete for the opportunity to earn your business and buy your invoices. You’ll get the knowledge and leverage you need to negotiate the best deal and most money when factor financing your accounts receivable invoices.

 

Quick and Easy Small Business Funding Offers – Get The Best Deal Today

Fast Small Business Loans:

Looking for working capital for your business today? Qualify for our fast small business loans quickly. Click here for business funding and you’ll get competitive offers from financing institutions to finance your growing business.

Traditional bank loans require specific collateral before they will lend to your small business. Get alternative small business loan ranging from $5,000-$250,000 with a general lien on business assets which is removed once you’ve satisfied/repaid the loan. Unlike a bank, the ‘value’ of your assets are not considered in the funding decision.

business capital,business line,factoring,business financing,factors,best factoring companies,fast business finance,easy business loans,working capital,cash flow,receivable finance,factor bid

Typically small business loans are from 3 to 24 months and the personal guarantee is only required for this time. Small business owners get the small business loans needed without securing hard assets. Use your loan for short term expense, to cover cash flow gaps and pay your loan back quickly to manage expenses.

Funding Amount: $2,000-$250,000+

Funding Term: 3-24 month*

Repayment: Automatic daily debits from your merchant account / small business account

Collateral: No business collateral required, pledge of only business assets for qualification

Eligible Business Type: From accountants, doctors, construction, Oil/Gas Industry, retail, manufacturing and over 200 others

Funds: Money in your account as soon as tomorrow. Fast and easy approval

Funds Usage: Can be used for most business purposes

See how much your business qualifies for today! Get Started