Is my business a good candidate for factor financing (invoice finance)

How do you know if your business is a good fit for factor financing?

Visit www.factor.bid

  1. Submit an outstanding invoice
  2. Get competitive offers from factors to buy your invoices
  3. Get paid as soon as today for your open invoices

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YES YES YES!!!  You are a great candidate for factoring if:

  • Upon providing a product or service, your client has an extended amount of time to send you payment (30, 60, 90+ days).
  • You have slow or late pay clients.
  • You cannot carry the financial liability of a non-paying client.
  • You require money down for a product/service that will take an extended time to complete before final sameday payment.
  • You have multiple open accounts receivable invoices each month.
  • You have open accounts receivable invoices and need to unlock that cash NOW.
  • Your office is waterlogged by all the time involved in administering/collecting your open accounts receivable invoices.
  • You have no recourse in place for non-paying customers. (like collections assistance, lawyers on retainer and/or a ton of free time with nothing better to do)
  • You have open accounts receivable invoices, but your credit is less than perfect.

MAYBE LATER?  Factoring might not meet your needs if:

  • You have a billion dollars in cash just sitting on your office floor begging to be used.
  • You do not have any open accounts receivable invoices at this time, but hope some new customers call today.  Bookmark Factor Bid on your Internet for when they do!
  • You get paid COD (cash on delivery) for your product/service.

Once you begin to factor, you will find you can:

  • Cover day-to-day business expenses
  • Cover payroll
  • Cover emergency expenses
  • Hire more employees to help your business grow faster
  • Purchase additional supplies and equipment (in bulk, at a discount)
  • Secure new customers
  • Grow your company
  • Lessen your liability

As you can see, factoring is the fastest and easiest way to unlock cash that’s trapped within your accounts receivable invoices. Stop financing your customers, while their businesses grow faster and you’re stuck holding the bill, literally!  Simply go to our website https://factor.bid to upload your invoice.  Within a few minutes, you’ll get competing offers from factor finance companies eager to earn your business and buy your receivables for immediate cash. 

On the run – Grab Factor app for your smartphone from the apple app store or google play store!

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Factor App finance mobile app for Google Android Smartphones

Factor App finance mobile app for Apple App Store Smartphones

Simply put, The History of Factoring (invoice finance)

The History of Factoring

Factoring has existed for thousands of years;

What does ancient Mesopotamia and the Roman Empire have in common?  How about the East India Trading Company, Hudson Bay Trading Company, and the Massachusetts Bay Colony?  Each of these civilizations and businesses use factoring as a way to grow their economy and/or fund their business endeavors.

In ancient Mesopotamia (1754 B.C.), there is a well preserved babylonian law code titled the, “Code of Hammurabi.”  The sixth babylonian king, Hammurabi, enacted the code and it covered such things as trading, punishments, and other laws meant to govern with justice.  This is one of the first preserved written records that mentions factoring type transactions.  The Roman Empire also has evidence that they sold their promissory notes at a discounted rate.

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Factoring was a way of life in England well before the 1400’s, and the pilgrims brought this form of financing with them to the Americas.  Even the Mayflower and the expedition to Plymouth were funded by factor financiers out of London.  Once the early American colonies were established, factoring remained an integral facet to the health of the economy.  Goods like fur and timber were shipped back to London to be sold.  Factor financiers were able to provide the funding the colonist needed while the goods were being shipped, but also collect the debt for the goods from European buyers in London when they arrived.

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There are three distinct qualities of factoring:

  1. It is not a loan.  It is the purchase of an asset.  In this case, the asset is the outstanding, or open, accounts receivable invoice.
  2. The credit is based on the receivables and not on the businesses itself.  Factors review the creditworthiness of the debtor.  Again, the debtor is not the one receiving the money for the accounts receivable invoice at the discounted rate.  The debtor is the one whom the product/service has been provided and owes the business money (the debt).  That is the person or entity the factor is most concerned with.  Is the person who owes their monies credit worthy and will they pay?  
  3. There are three parties directly involved: the factor who purchases the receivable, the one who sells the receivable, and the debtor who has a financial liability that requires him or her to make a payment to the owner of the invoice. In the case of a loan, there are two parties;  the lender and the debtor.  In factor finance; the seller, the factor finance company, and the debtor all play an intricate roll in the factoring relationship.  In fact, if the debtor is not making payment, the factor will give notice to both the debtor and the seller and if need, take further action to retrieve those funds.

Great civilizations, amazing historical advances, and economic stability are all proof of factor financing at it’s richest and most profitable. Until now, a small to medium size business, looking to factor finance their receivables / assets has been at the mercy of traditional discovery; searching through mountains of information, assessing risk with little or no real comparison and overwhelmingly  trying to find the best deal to help their company succeed.

So what sets factoring apart today, from 1000’s of year ago? Technology! Smart business owners looking for leverage to negotiate the very best financial deal for their company will find a better alternative to traditional factoring called Factor Bid.

Factorbid.com matches business owners looking to sell their account receivables with competing factor finance companies, eager to buy those receivables for immediate cash. When you submit your accounts receivable invoice using factor bid, factor finance companies compete for the opportunity to earn your business and buy your outstanding A/R Invoices. You get the leverage and knowledge you need to negotiate the best deal with the least amount of effort and work.

Factor bid is easy to use and only takes about 2 minutes to get set up. Within the hour competing factor finance companies will be fighting for the opportunity to service your receivables and get you immediate capital to run your business.

You seriously have to wonder what the history of factoring would have looked like with a competitive system in place like factor bid. What type of voyages could have been even more successful, providing more supplies, with less liability and more available capital to leverage and stockpile goods, enhance trade commodities and increase supply chains.

Factor bid is a FREE RESOURCE for business owners. It’s recommended that you get a few offers from competing factor finance companies before deciding which factor finance partner is right for your business needs. visit factor bid now to get started and get paid as soon as today!

Go mobile – with Factor App

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Happy Factoring!

Factor bid gives you a few offers to buy your open invoices. Get competitive offers from the top factor finance companies and get paid as soon as today!

Factor.bid gives you a few offers to buy your open invoices. Get competitive offers from the top factor finance companies that specialize in your industry and get paid as soon as today!

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Turn Invoices Into CASH

Description

Factor bid gives you a few offers from factor finance companies competing to buy your outstanding invoices, freeing up your cash to purchase supplies, cover payroll, or expand your business. “A great option for small businesses that need cash.”

Eliminate the wait, get paid now

Factor bid eliminates the stress of slow paying customers. Waiting for payment on Net 30/60/90 terms is painful when you have a business to run.

A debt-free solution

Invoices represent revenue you’ve already earned. Why take a loan when you can unlock existing capital to get paid faster? Factor bid matches you with a few factor finance companies looking to buy your invoices for immediate cash, so you don’t have to wait.

Get paid in a snap

Snap a picture or upload a copy of your open invoice to begin. Within minutes you’ll have competitive offers to buy your A/R Invoices from a few of the top factor finance companies that specialize in factoring invoices in your industry.

Approvals as fast as 24 hours for your first advance

Once you choose the right factor finance company to partner with, you’ll be able to receive your first payment within 24 hours. Ongoing funding requests can be approved and released to your account in as fast as an hour.

Receive the funds directly to your bank account

Choose ACH as your payment option for 1-2 day delivery or choose wire for same day availability. Use the funds to manage and grow your business.

Thinking about factoring on the go?

Download Factor App for your Smartphone

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Factor App for Google Android Smartphones

Factor App for Apple iOS Smartphones

 

Taking advantage of opportunities for your small business with invoice finance.

Small Business Opportunity

In order to talk about small business opportunities, we need to explore those areas we are not taking advantage of.  For most companies, discovering the power of financing your outstanding/open accounts receivable invoices might be a foreign concept.  How is a piece of paper reminding me that a client has not paid me for work completed going to ever benefit me?  That is a very good question, and we have a very important answer!

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How do outstanding accounts receivable invoices benefit me?

Here is how it works.  You have billed your client for the service/product you have already provided them.  The work completed involved time, money, and resources.  You need paid for that job.  There is now an open accounts receivable invoice sitting on your desk that you need money for.  

You have a few actions you can take to get that money:

  • Do nothing. You always wanted to become a short term lender while your customer’s business grows bigger and more profitable every 30 days your business covers their money owned to you.
  • Call the mafia…what’s that guy’s name again (just kidding!)
  • Call the customer with a friendly reminder that you are closing your books for the month and need them to send in payment – you understand they are just busy!
  • This is ridiculous.  This customer is never going to pay you and you know it.  Call a collections company and have them strong arm the client.
  • Use the Factor App and snap a picture of your outstanding accounts receivable invoice, or upload a pdf copy of the invoice.  Within minutes you will be contacted by  a few of the top factor financiers who want to get you PAID in less than 24 hours!

Why do factor finance companies want to relieve your business of stressful liability, get you immediate cash for open invoices, help your business create an organized and efficient accounts receivable process and provide your business with predictable cash flow so you can grow faster and be more profitable? Because “what’s good for the goose is good for the gander!” Which simply means, the better your business does, the better your finance partner does (the factor).

Having access to immediate cash flow is a powerful business resource today. Remove fear and/or hesitation when bidding for new contracts. Hire good employees that you need to complete jobs faster. Stockpile supplies at a discount. Financing your outstanding invoices is a smart business move and will help increase marketshare. The more of the market your business services, the greater your return on investment will be, ultimately yielding more profit for your business at the end of the year.

Use Factor App on your Smartphones to start factor financing now. Get paid as soon as today!

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The best way to collect on your open accounts receivable invoices

Collecting on unpaid invoices can be one of the most tedious tasks in running a business. If you’ve got open accounts receivable invoices and slow-paying customers, you’re probably faced with a cash crunch within your organization.

There is a sense of accomplishment and pride when you invoice a customer. The feeling that you’ve done your job and delivered on what you promised. But how do you add a sense of urgency to your invoice collection process, and get customers to pay on-time or even a little early?

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Collections should be seen as one of the most important functions in your business, second only to client services. Spending time in collecting open invoices brings in much needed cash your business uses to pay bills, cover payroll, hire more employees and stay competitive in your industry. Without a good collection plan in place, outstanding invoices will pile up and may even force your company out of business.

factor app,factor finance,factor bid,invoice finance,invoice factoring,accounts receivable finance,receivable finance,asset lendingSo what’s the best way to collect on those slow pay or open invoices? First off we need to start with a collection system. A system that helps with vetting potential new customers and even existing customers you’re working with today!

DESIGN & IMPLEMENT A SMART COLLECTION SYSTEM

Step 1  -Avoid bad paying clients by checking their credit and payment history. Before agreeing to offer a net 30 payment plan to a client, check their recent and previous payment activity.

Commercial credit reports are inexpensive and can be purchased quickly from companies such as Experian, Dun & Bradstreet and Ansonia. These reporting companies offer assistance and can even help with establishing a suggested credit line.

Once you’ve established they are credit worthy, establish a good follow-up process to make sure you’re always in front of any potential future issues.

Step 2 -Use the correct contracts for your business. Every sale you make should be governed by contract.  Contracts should be designed by an attorney and should outline deliverables, time frames, how any dispute may be handled and payment terms and expectations.

You need to have it writing! The contract must outline when payment is due and what expectations are required to earn such payment. If you’re offering terms and you don’t have your agreement in writing, you’ll have little recourse if legal action is required.

Step 3 -Use a delivery acceptance letter for services rendered. The letter should state the work has been completed and/or products have been delivered to the client’s satisfaction! The client should sign the acceptance letter to verify their satisfied with your work.

An acceptance letter will help you identify any potential issues between you and you client at time of delivery. If your clients does not want to sign the acceptance letter, then you have a big problem. It’s better to know there is a problem immediately, in hopes that you can fix the problem right away and get back to business as usual in the days ahead.

The acceptance letter may also come in handy at a later date, in the event you have to send your customer to collections for non-payment. Remember the objective to having an acceptance letter, is to prevent collection problems from happening in the first place.

Step 4 -Send the Invoice and job paperwork promptly. As soon as the work is completed, send an invoice and any related paperwork that is needed to supports the invoice. For example the acceptance letter would be a smart supporting document that you could include when sending the invoice for payment.

Follow the payment proceedings outlined in the agreed contract. If your client requires open invoices to be sent to their accounts payable department, with a copy to the owner or project manager (or someone else), do so. Not following the payment clause listed in the contract my cause payment delays.

Step 5 -Follow up! It’s always a good idea to follow up with clients on a regular basis. On the same day you’ve sent the invoice out for payment, follow up to make sure the client has received your request along with all of the necessary documentation they need to close and pay the invoice.

fast cash, immediate cash flow,invoice finance,debtor finance,accounts receivables,factor app,factor bid,get best deal when factoring,invoice factoringLATE PAY OR PAST DUE INVOICES -Once an invoice is 5 days past due, pick up the telephone and call the client to see what the issue is. Follow up the call with an email about what you and the client talked about on the phone and ask for their confirmation in the email. Make sure you’re both on the same page and have come to a conclusion, so you can get paid.

If there was no issue and the client is simply behind, make sure and secure a new payment date. Lock it in and send that new payment date in the follow up email as well.

If the payment date is missed for a second time, wait a few days and repeat the above process. If the client misses multiple payment dates, then you may need to submit to collections.

It’s important that you always remain professional and treat your clients with respect. You will have better luck collecting slow-paying invoices by remaining professional and keeping your composure throughout.

KNOW WHEN TO USE OUTSIDE HELP -There is always a chance some clients will not pay. In this case you may need to hire an attorney or start working with a collections agency. These methods can be expensive and take time away from running your current business operations. Dealing with past due and unpaid invoices as well as collection issues distract you from focusing on business growth. You may need a professional third party to help handle it with you and their best interests in mind.

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Factor App – Invoice Factor Finance

PROFESSIONAL THIRD PARTY -Factor finance companies can help in designing and implementing a smart collection system. In some cases a Factor can become an intricate part of your back office. Why would they do this you may wonder? Because when a Factor is providing you up-front cash flow for your open invoices, they want to make sure the invoice is paid on time and no additional collections are needed.

Factors can help with quick credit checks, providing payment history and a good risk assessment of the customer. A Factors recommendations may even prevent you from having bad customers, and allow you to focus on growing your business as quickly as possible. It’s always nice to have a reserve of cash you can tap at a moments notice.

Factors have been collecting payment on invoices for years and know what to look for in customers that pay slow or have some type of issue in making payment. There experience may lend some solutions that you may not have thought of.

So if you’re looking for some back end office assistance in collecting your accounts receivable invoices and need more cash flow to grow your business, cover expenditures and make payroll; use Factor.bid to match your business with the right factoring company today.

Factor.bid -enables you to shop your open invoices. Factors compete for the opportunity to earn your business and buy your accounts receivable invoices for immediate cash.

Factor.bid is free to use and is an essential part of deciding which Factor is right for your business. Which factor can provide the correct financing for the industry that your business services. Not all Factors are the same. Make sure you’re getting competitive bids to buy your invoices.

Check out www.Factor.bid for back end office support when designing and implementing your accounts receivable collection system and get paid for your open invoices as soon as today.

What is Accounts Receivable A/R discount finance and how can it help your business outperform your competition?

Outstanding and/or ‘open invoices’ represent invoices that have been sent out to a client for payment, but have not yet been satisfied/paid by the client. These invoices can be financed or A/R discounted for less than the face value to quickly raise capital and increase cash flow.

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The buyer of the A/R Invoices also know as the (factor) purchases the financial obligation at a discounted rate providing the selling firm (that’s you) with immediate cash. The factor now assumes responsibility in collecting the money owned by the original debtor (or the company you originally provided your product or services for.)

The invoice is sold at a discount, which is typically 85-90 percent of face value. The Factor requires a percentage of the invoice remains in reserve in order to reduce their total risk, in assuming responsibility for collecting the outstanding debt. Once the debt is collected by the Factor, you’ll receive the reserve amount of the invoice or the percent that was held back -minus any service fees.

Here is just one example of the fee scale from one small factoring company. Every Factor is different and you should use Factor.bid to shop your open invoices for the best deal when factoring.

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If this fee structure seems high, what is the costs of not factoring?

The Costs of not Factoring:

  1. Time value of money
  2. Benefit of improved cash flow
  3. Cash within 24 hours
  4. Pay Suppliers faster
  5. Receive discounts from suppliers
  6. Make payroll without using personal finances
  7. Offer longer terms to larger customers
  8. Attract more business
  9. Business growth without incurring more debt at your bank
  10. Lowers your business liability / risk in collecting payments

Will the financial benefit of improved cash flow to your business offset the fees associated with Factoring, And then some? In many cases Factoring is a smart business decision and can aid your company in growth and new found business opportunity.

 

Who is the best Factoring company for financing my accounts receivable invoices?

Who is the best Factoring company for factor finance? I bet it changes daily! We’re going to tell you the easiest and most stress free way to find the best factor finance company that best fits your individual business needs.

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There are many variables that go into making the best Factor Finance Companies.

For example:

  • Their Finance Rate (how much you’re gunna pay, in discounted fees)
  • Their Finance Terms (how long you’re gunna stay)
  • Their Fee Structure (what kind of fee charges)
  • Their back office support (Do they help out with Fax, Phone Calls, Emails, Mail, etc.)
  • Their customer assistance help (can you reach them easily, when you have questions)
  • Their days to pay (number of days you have to wait for money)

..and many other details you should consider when selecting a Factor.

To make it easy for your business to connect with the best factors that match your industry, we created Factor.bid and Factor App – “yes factoring in an App, Amazing!”

See we feel like, why limit yourself to just one offer, when you can get multiple competitive offers from the top factors! Factor.bid is vetting factors and checking their business practices with our existing customers daily to make sure their not only claiming to be the best and top rated factor but also following through with those claims.

Once you use Factor.bid to connect with the best Factor finance companies, you’ll understand why business that want the best deal and most money when factoring use Factor App!

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Mobile Growth Summit 2016 San Francisco California Feb 17 & 18

Are you focused on mobile tech? Check out the Mobile Growth Summit, February 17 – 18 in San Francisco, CA.

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Watch – Youtube (Mobile Growth Summit) video

Say hi, Factor App is attending!

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2016 TOPICS INCLUDE:

Running A Successful App Business
Growth Hacking
App Store Optimization (ASO)
Paid Mobile User Acquisition in 2016
25 Mobile SEO Hacks
Leveraging Mobile Web
Building Better Customer Relationships
Trends in Influencer Marketing
Messaging Apps & Growth Opportunities
3 Ways to Drive Down Your Uninstall Rates
Monetization
Expert Mobile Predictions for 2016
Special Ad Mediation Hot Seat!

VENUE

Mission Bay Conference Center
1675 Owens St, #251
San Francisco, CA 94158