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

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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 Plan B – business finance awareness

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

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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!

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.

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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

It’s Friday, “direct deposit day” (payday)

If you’re a business owner, you’re familiar with the excitement that comes with Fridays around the office. Employees are getting ready for the weekend and are exited for their paycheck! Some employees even get their check as “direct deposit” early Friday morning before work even begins.

What’s this mean for business owners – Payroll expenditures! See for business owners payday isn’t always as consistent and predictable as Friday employee pay is. Business owners have to wait for payment from customers and often times end up covering payroll and other daily business expenses right out of their own pockets.

Wouldn’t it be nice if your business could get paid on outstanding receivables before the work day even begins? 

What if you could have the same great feeling every Friday that your employees feel. Well you can! If your company is feeling the cash flow ‘squeeze’ from slow-paying customers and you want to get back on that good vibe kind of feeling when it comes to getting paid, then take a look at factor financing your receivables.

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Cash Flow “Squeeze”

What is Factor Financing and how do I get paid in 24 hours?

Companies sell their invoices or accounts receivables to specialized companies called factors. The factor advances most of the invoice amount upfront by simple direct deposit. You can get paid within 24 hours of invoicing your customers. Factoring will continue to provide your business with predictable cash flow everyday of the week, even Fridays so you’re able to cover payroll and other expenses without digging into your own pocket.

Be excited for Fridays, meeting payroll with confidence shows your business is a success. They always say “people sell people”, so if your employees are instrumental in helping drive new customers and maintain existing accounts then paying them is a good sign that your business is growing and on it’s way to becoming a great success.

Is your business Mobile? Check out Factor App – for invoice financing on the Go!

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Factor App for iPhone

Factor App for Android

Absolute quickest easiest access to more money today by leveraging your invoices!

Absolute quickest and easiest access to more capital for your growing business.

Factor financing (using your accounts receivable invoices) to get immediate cash for your business. Factors buy your business receivable invoices and you get paid within 24 hours of invoicing your customer.

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Can your business use more cash on hand;

  1. to cover payroll
  2. buy supplies
  3. pay day-to-day expenses
  4.  buy new equipment, fuel, repairs and more

Your accounts receivable invoices are an asset and you can use them to increase your daily/weekly/monthly cash flow! If you wonder how competitors and other business affiliates are growing so quickly, you may want to take a deeper look into factor financing.

Below are some case studies of companies that are utilizing factor financing to grow and reinvent their businesses to keep up with demand from today’s ever-changing and evolving customer demographic.

Case Studies of business that are benefiting from factor financing today:

 

Example 1 – Great Customers that pay on time with excellent credit

A solar panel design and manufacturing company has low capital to cover day-to-day expense, but has strong customers with well established credit ratings and payment history. Although the company is profitable on paper, the company’s owner was tired of always having to bank roll short term expenses. Keeping track of all the advances the owner was personally making to the company, and then getting paid back was messy.

The business owner discovered factor bid and was able to get a few offers from the top factor finance companies to buy his accounts receivable invoices for immediate cash. Now the owner is relaxed and his business is more secure with the professional help of the factor for collecting receivables. He now spends most of his time focused on new business accounts and his sales team’s performance and return on investment.

Example 2 – Supplier of Computer Components runs into a cash flow pinch:

A supplier of mobile phone components imports and resells their product to a variety of U.S. based customers. Their forward thinking in bulk purchasing and niche product in an evolving market has lead to significant growth.

As a growing company with a lot of overhead, restricted access to capital and/or line of credit was making it difficult to take advantage of volume order discounts. A flexible invoice factoring arrangement provided a much needed solution that significantly increased the company’s ability to operate, resulting in a jump in quarterly and annual profits.

After factoring for 24 months the company realized it had enough capital to cover purchases but didn’t necessarily want to end their relationship with the factor finance company.  The predictable cash flow they’re able to have by partnering with a factor enables them to be more aggressive and focused on strategic alliances and new growth. They figure, if they fee they are paying the factor to get their money 65 days sooner is costing them less than the profit they’re making from having their money 64 days sooner then why would they stop using the factors money to make money.

This scenario doesn’t work for every business, but it will for most. If your business is making more money than it’s costing you and your profits are climbing, then you’re doing something right and your most likely on your way to increasing your market share and beating our some of your competitors competing for the same business and customers.

Example 3 – A Company is downsizing with the need for finance alternatives

A manufacturing company needs to change it’s business model to keep up with the modernization of delivered products in their industry. Customers promise to keep buying and support the change to ultimately increase sales by reaching new customer demographics while updating their existing customer buyers with more modern products.

The move by management requires the financing for new equipment, additional employees, training and materials that will ultimately squeeze the company’s cash reserves.

The answer is to unlock cash that’s tied up in their accounts receivables for 90 days or more. Once they put the right arrangement in place with their new factor finance partner, they were able to quickly unlock cash that’s been sitting around in their receivables. The company is now highly profitable and attracting new customers on a global scale.

Example 4 – Technology Company

A technology company redirected their team of engineers and developed a new, easier version of their existing product. They also updated their business plan and brought in some new employee talent.

After 16 months of losses and the recall of a bank loan, the company was short on cash and unable to secure another bank loan or source of lending capital. However, orders were climbing and the product’s sales cycle was shrinking which pointed to an increase in positive growth.

The company discovered factor financing, and were able to increase cash flow, allowing the company to strengthen vendor relationships and concentrate on sales instead of collections. After 30 months of factoring invoices for immediate cash, the company is now profitable and attracting large bids of private money for a new growth cycle.

Example 5 – Call center business growing “too fast”

A call center that specialized in handling calls for a rapidly growing computer software company who’s software sales and database was growing exponentially. The call center was able to generate a 40% return per employee after 3-5 months but needed additional working capital to hire more senior staff for training, management and facilitation of all the new customer accounts. The company also had substantial contract in place for additional call services, that would require them to double their staff and working space in the next 3 months. This would result in a huge payroll increase and cash flow requirement right away.

This is a classic example of the need for immediate working capital to grow your business quickly. After reading a blog they found online the company wanted to try factoring their receivables to help liquidate cash tied up in invoicing current customers. They then googled how to find the best factoring company and discovered factor bid.

Factor bid got them a few offers from aggressive factors that were eager to earn their business and take part in their rapid company expansion and growth. Today the company has over 150 call center representatives and services some of the top software companies in the western United States.

If you’re business needs help unlocking some or all of the money tied up in your accounts receivables, then visit www.factorbid.com to get a few competitive offers from competing factor finance companies. Don’t wait 30,45 or even 90 days to be paid, get paid as soon as today!

Is your business on the Go! Download Factor App for your Smartphones

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Factor App for your Apple Smartphone

Factor App for your Google Android Smartphone

Two ways to factor your open invoices; recourse and non-recourse.

Two ways to Factor Finance your outstanding accounts receivable invoices for cash! Get an injection of cash for your business that trapped in your accounts receivables. Funding in as little as 24 hours! www.factorbid.com

*Recourse Factoring Agreement

*Non-Recourse Factoring Agreement

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Ask questions about your factoring agreement!

Factoring benefits your business by providing immediate cash flow on your accounts receivable invoices. You’ll have the cash on hand to grow your business, cover daily expenses and even invest in additional supplies, employees and opportunities that present themselves.

Factors also add their assistance with back office bookkeeping help. Factor finance companies collect payments on your outstanding receivables from your customers. Having more cash on hand plus a factor that handles collections provides you the time and money to do what you do best, work hard for your business!

Let’s discuss your two types of factoring; recourse and non-recourse factor financing.

Non-Recourse Factoring

Pro:

Non-recourse factoring is appealing from a risk management perspective. It lowers your company liability.

With non-recourse agreements, the factor accepts more of the risk of non-payment by your customers that don’t pay.

Con:

Non-recourse factoring is usually more expensive than recourse factoring. Non-recourse factoring is also limited to debtors (your customers) invoices that are most likely to pay. If a debtor has poor payment history and credit rating, a factor will usually not assume the risk of non-recourse factoring.

Non-recourse factoring doesn’t always protect your company from all risk involved from non-payment by a debtor. Some factor finance companies only offer non-recourse in the event your debtor declares bankruptcy. But if a debtor decides to simply close their doors and disappear  one day without paying, the factoring client will have to buy back that invoice from the factor finance company.

Recourse Factoring

Recourse factoring is the default for most factoring agreement today. Recourse is an understanding between you and your factor finance company, that you must buy back receivables that the factor is not able to collect on.

Pro:

Recourse factoring is typically less expensive. Less risk for the factor finance company means a lower rate for your business when selling your invoices for immediate cash.

Con:

As the client, you’ll have to cover the cost of any invoices (bad debt) of your customer that decided not to pay.

Whichever type of factoring you decide to obtain through your factor finance company, make sure you’re getting a few offers from different factors so you get the best deal. Every factor is different and every business has different types of customers. You may work with big companies that have long business standing in the community and are seen as low risk, which means your rate and terms may be different from a business working with a newer more high risk company with less long-standing business history to examine.

By visiting www.factor.bid – you’ll get a few offers from competing factors that specialize in your specific industry. When factors know they’re competing for your business at the exact same time, you’ll get their very best deal!

Start your factoring experience the easy way, by using factor bid, where we match you with the top factor finance companies that are eager to earn your business and provide you with competitive offers to prove it!

www.factorbid.com 

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Your money – your business, run profits to the max, starting now!

Your money, your business! It makes sense to want to maximize your business’ profits. First review what you already have going on. For example your breakeven point. What are your cost vs. your profit? A good way to figure this out is to realize your breakeven point -where you quit loosing money or showing a negative return on investment.

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1.) Keep your breakeven point low:

This means watch your spending, both on a personal side and for your business expenses. Have you ever wondered why so many startups are launched by young entrepreneurs with little to no major financial obligations? It’s simple really-they tent to have no mortgage payment, no kids to support and are most likely to have a low monthly spend rate.

Your breakeven point is important because you really don’t know in which month/year you will in fact break even. So until this happens, spend as least as possible. Running your business in a lean manner by keeping overhead at a minimum will buy you more time to get your formula right, thus reaching your breakeven point much quicker.

2.) Maximize your ‘outside’ income:

Consider alternative sources of income. Tap friends and family to help out with some seed money to keep the lights on; a partnership agreement with an expert in a field that you may be lacking or not as familiar in. Remember 100% of a company that makes zero is much worse than owning 50% of a company that generates a profit every month / year. Think outside the box, use people in your network to help you grow your business. Every little bit helps define brand and guide you on the most efficient path to success.

3.) Seek other types of external funding:

If you still find your business is in need of additional cash flow to grow, consider grants, government loans and additional opportunity available from your local small business administration. For example in Arizona we have a platform called the Arizona Innovation Challenge, in which funds can be won by submitting your business plan / idea to a panel of advisors that will consider your company for capital investment, that does not need to be paid back and does not dilute your company stock or position.

If you’re managing all your resources correctly and see that your business is starting to have some success, and you’re adding new customers that want/need your products and/or services then you may want to consider leveraging your company assets to help grow your business faster. For example, selling your outstanding accounts receivable invoices at a discount of their face value (factoring) for immediate cash flow.

4.) Accounts Receivable Invoice Factoring: 

Did you know there are finance companies called (factors) that are willing to buy your open accounts receivable invoices for cash? You get paid for your invoices within 24-48 hours upon invoicing your customers. No need to wait 30,45 or even 60 days to be paid for work you’ve already completed and or products you’ve already sold.

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Image source: Google search keyword ‘invoice’

Why should you’re business struggle while your customers use your money / products / services to grow their business. With that being said, most companies do practice some form of invoicing and by doing so have to wait to be paid from their customers. A majority of business owners have discovered factoring and know that they are able to increase their business cash flow very quickly by partnering with a factor.

If your businesses is not in the position to become the financier of your customers, and waiting for payment just feels unproductive or unfair, then visit Factor bid to find the best factoring company to help finance your accounts receivable business asset invoices. Factor bid gets you a few offers from factor finance companies, so you get competitive offers and the best deal when selling your invoices at a discount. When factors know they’re competing to buy your invoices, there offers are going to be more aggressive in order to earn your new business.

When you practice smart business tactics like factoring your invoices, you’re able to utilize the factor financiers money to grow your business faster instead of your customers using your money to grow their business, while you sit and wait for payments.

Benefits of Partnering with a Factor Finance Company:

Factors help you steam-line your accounts receivable collection process and make sure your customers are paying as agreed. When selling your invoices and getting cash with 24 hours, you’ll have a good idea of what your predictable cash flow is every month. This is important in realizing your breakeven point as well as applying additional capital to key parts of your business that are generating revenue.

Factors also lend a hand with vetting new customers. Factors have tools that you can access that help you decide if a new potential customer is a good fit for your business – i.e., do the pay their bills on time, are they in good standing and ultimately making sure you get paid for your contribution.

Insure your money with non-recourse factoring, to help limit your businesses liability in collecting on open invoices,  like when a customer all of a sudden decides they don’t want to pay you.

As long as you’re bottom line increases, and your business profits continue to grow, the small fee a factor finance company charges is nominal in the grand scheme of things. The important thing is knowing you have that money and not worrying about customers failing to pay you.

Run your profits to the max – and grow your business efficiently by utilizing everything you have access to. If you ever wonder how your competitors are doing so well, there is a good chance they’re following most of the simple practices outlined in this post. Good luck and keep on working hard everyday and at the end of a month / year / 2 years, etc – you’ll have something you and your family will be proud of.