Alternative finance programs to allow for the financing of invoices for goods and services that have not been performed (Pre-Billing)

Finding a factor finance company that allows for the financing of invoices for goods and services that have not been preformed (Pre-Billed)

Factorbid.com can help! We get you a few offers from the top factoring companies in any industry. Locating a few factors that specialize in any specific industry is difficult. Fortunately we’ve been in the small business financing industry for years, even before we designed and deployed our online mobile enabled matching service called factor bid.

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Take advantage of years of experience that we have in working with the top factor finance companies in every industry. Factor bid quickly and securely matches your business industry financing needs with factor finance companies that specialize in your industry, so you get the most competitive offers right away.

Challenges of Invoice Financing:

Pre-Billed Invoice financing – If your trying to factor an invoice for work that has not yet been completed or the product has not yet been fully delivered, most factoring companies will determine this type of invoice as UN-FACTORABLE until the work is completed or the product is delivered.

SOLUTION:

Factor bid works with all the top factor finance companies that offer hybrid factor financing programs that can factor PRE-BILLED invoices under certain conditions.

For Example;

  • Advance of the full invoice amount up to 80-85%
  • Rates in as short of 10 day increments, 15 days on average
  • 50% of the advance to be made day 1, the balance on day 16
  • Verification to be made on a case-by-case basis
  • Most industries accepted
  • First security position is required
  • Can work with other forms of financing in place with proper subordination and subject to credit approval

Total processing time for these type of hybrid financing models can take a few days longer than standard 24 hour processing. To get a few offers from competing factors and see which hybrid program fits your business financing needs, visit factor bid website and select the “Let’s Get Started” button.

 

Quick Guide to Invoice Factoring – Factoring enables you to turn the money customers owe you into working capital

Working Capital | Business Cash Flow

What is Invoice Factoring – Invoice factoring (also called accounts receivables financing and invoice discounting) is a smart business fiance tool that gives your business immediate access to monies your customers owe you, on the same day an invoice is generated, so that you don’t have to wait 15, 30, 60, 90 – days or longer -for customers payments.

Access to cash that’s tied up in your accounts receivable invoices enables you to reinvest working capital into your business more quickly.

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Benefits of Factoring Invoices:

  • Take on more new customers
  • Expand your business operations
  • Cover payroll and hire more new employees
  • Pay suppliers to receive a volume purchase discount
  • Pay off higher interest loans and equipment financing
  • Take on bigger orders more quickly
  • Cover day-to-day operating expenses

Having the ability to access immediate cash and increase working capital will help your business grow more quickly, keeping you competitive and relevant in your industry.

How The Factoring Process Works:

  1. Your business generates a customer invoice. Instead of waiting weeks or months for the customer to pay-
  2. Factor the invoice with your factor finance partner and get same day funding up to 98% of the total amount of the invoice, for a small fee – which could be as low as 1% of the amount of the invoice.
  3. Once your customer pays the full amount of the invoice, the amount held in reserve is also returned to you, minus the factoring fee.

Why Use Factor Financing For Your Growing Business?

Factoring enables you to turn the money customers owe you into working capital, that you can use for your business today. There is not need to wait weeks – months for the chance of customers to pay, instead free up working capital immediately.

More Working Capital Enables Your Business To:

  • Offer generous credit terms to your clients as a competitive advantage
  • Leverage purchasing power to negotiate discounts with suppliers and vendors
  • Improve your ability to meet day to day expenses
  • Take on new customers or fulfill larger orders
  • Reduce accounting -related costs
  • Reduce your companies financial risk from bad debt with non-recourse factoring

A factor (in a non-recourse factoring agreement with your company) assumes the credit risk for the factored invoices. If a customer is unable to pay for credit reasons, the factor will absorb the loss, not your business!

There is also recourse factoring agreement, which is less expensive, because your company assumes more risk. With recourse invoice factoring You may also be required to repurchase invoices that remain unpaid by your customers and cover your own legal or collection costs in collecting payment from non-paying customers.

Common Reasons Business Owners Use Factoring:

  • Slow-paying customers that are creating a cash flow crunch
  • Customer accounts with extended terms, stretching out payment due date
  • To offer longer payment terms for customers, to attract new customers and/or match what competitors are already doing
  • Need access to immediate working capital to take advantage of emerging business opportunities – like taking on bigger clients or fulfilling larger orders
  • Speed up cash flow to meet operating expenses
  • Expedite cash flow to take advantage of supplier vendor quick-pay discounts
  • Reinvest money tied up in receivables more quickly
  • Grow their business faster in order to increase their market share within their industry
  • Make a larger return on investment each year
  • Utilize the experience of the factor finance company to help organize and deploy a more efficient bookkeeping and collection cycle

If you’re ready to see how much more money your business can access every month by factoring your accounts receivable invoices, then simple click the Get Started button at our www.Factorbid.com website.

Factor bid quickly matches your business with factor finance companies that specialize in your industry and are eager to earn your business and buy your accounts receivable invoices for immediate cash.

At factor bid -you’ll receive a few competitive offers from factor finance companies. Review each offer and decide which offer is the best fit for your business.

Factor bid is fast, easy to use and secure. Spend a fraction of the time (locating the top factors) and receive the knowledge and leverage you need to negotiate the best financing deal for your company.

Factor bid is free for business owners and you’re under no obligation to factor. Find out what your financing options are within a few minutes at Factor Bid.

On The Go! – Download Factor App – to get started comparing offers!

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Get a few competitive offers to get the best business financing deal

A few competitive offers means a lot for your business. Financing is competitive, if you know where to look.

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How do competitive offers help?

  1. Leverage – You get to listen to what each finance company has to offer to find out what your business options are. Use the information provided by different finance companies to negotiate the best rate, terms and most money for your accounts receivable invoices.
  2. Knowledge – Each finance company is different. The amount of money you can access within 24 hours depends on several different business variables. Most factors – one on one will not take the time to explain what all these key variables are, so getting a few offers from different finance companies teaches you a little more each time. When you know the variables in the funding equation, you can negotiate a good deal for your business financing.
  3. Best deal – When finance companies know they’re competing against each other, you’re going to get their best deal today! For example, when you’re using factor.bid to get a few competitive offers from the top companies, they know they have to be competitive, helpful and transparent or they won’t have a chance to win your business.

The goal is to provide a place (www.factorbid.com) where business owners like yourself can get a fair opportunity and a good deal when financing. If you’re trying to call, email or contact every finance company out there, it’s going to be a daunting and tedious task of sharing your business information over and over, answering the same questions hundreds of times and worst of all not knowing the finance companies you’re even talking to are dependable, secure and good businesses.

With factor bid, your experience is fast, easy and secure. We’ve done all the heavy lifting already. Once you submit your invoice or fill out your custom application form; you’re going to get a few offers from the top factor finance companies that are the best and specialize in your industry specifically. They know they’re competing for your business, so they’re offers have to be straight forward with the best funding available today or they won’t have a chance in winning your business.

If you want the most money and best deal when financing your accounts receivable invoices for immediate cash, then click the Factor.bid link at the top of the blog and visit our home page. From their you can click the “Let’s Get Started” button. Within the hour, you’ll have competitive offers to buy your invoices for fast cash.

On the Go! Grab the one and only factor financing app FACTOR APP

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Factor Finance 101, obtain cash flow in an orderly fashion

Businesses can factor their outstanding accounts receivable invoices as a way to obtain capital in order to cover business expenses while experiencing growth.

Cash is king and immediate access to ‘cash flow’ is sitting right on top of your desk, tied up in accounts receivable invoices.

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Factor Finance 101

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.

Quick Terminology to Know:

  • Account Creditor – Usually that means you, or the Business and provider of goods and services
  • Advance Rate – The amount of money fronted to the company factoring accounts receivable invoices – as a percentage of the total invoice amount (not the full invoice amount).
  • Customer – Referring to ‘your customer’ responsible for paying the outstanding invoice.
  • Debt Finance – Capital secured in exchange for a commitment agreement to pay interest in addition to the principal amount borrowed.
  • Discount Fee – A fee assessed by the factor finance company that you have an agreement with to purchase your accounts receivable invoices for cash. The discount fee is calculated by the amount of the invoice, the length of time it takes to collect the owed funds and the creditworthiness of your customer.
  • Equity Financing – Capital secured in exchange for an ownership percentage interest in a company.
  • Factor Finance Company – A company that provides operating capital to business owners by purchasing their open accounts receivable invoices
  • Factoring – The purchase and collection of accounts receivables
  • Non-Recourse Factoring – A period in which accounts purchased by a factor remain the factor’s accounts and do not revert to the account creditor if unpaid; due to an insolvency event. A factor accepts full credit risk for any and all accounts purchased during this period.
  • Recourse Factoring – A period in which accounts purchased by a factor are able to revert to the account creditor if unpaid due to an insolvency event.
  • Rebate – Percentage paid back to you, minus the factors fee, once the debtor (your customer) has paid the invoice in full.
  • Reserve – Money that is held back as security by the factor to reduce their total liability in collecting the total and full invoices amount from the debtor. [ie., the advance rate + the reserve = 100 percent of the total invoice amount]

Turn your receivable invoices into immediate cash flow by factoring. Factoring is the conversion of accounts receivable invoices into cash by selling those outstanding invoices to a third part (called a factor). Factoring is especially important for companies in early stage development, during rapid growth or even financial hardship.

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Factoring will help to fill in the gaps created when your company delivers goods and/or services and when customers finally pay. The time in between is a gap, in which you’ve delivered but not yet been paid.

Many business owners worry that they don’t qualify for factor financing due to; not enough years in business or lack of adequate business credit. Well good news, factors actually base their decision on your customer’s credit history, not yours. If your customers are good creditworthy customers, then your business is most likely a very good candidate for accounts receivable invoice factoring.

Factoring is a simple and fast way to obtain business capital. Your outstanding invoices are considered an asset and you won’t add any new debt on the books by factoring. You can access a portion of your total invoice amount, usually up to 95% of the face value of the invoices. You’ll receive the other 5% of the invoice value, minus the factoring fees when the debtor (your customer) pays the outstanding invoice in full.

With factor financing you’ll be able to obtain cash to help your business without needing personal collateral or increasing interest expenses from other lines of credit you may be using. Remember, invoice factoring is not a loan and will not add debt to your balance sheet. You won’t accrue interest or penalties, like with traditional loans and the factoring fee is clear and agreed to by you and the factor before your first invoice is funded.

Factoring fees can be a flat fee or can fluctuate – so it’s important that you use factor bid when looking for the best factor finance company to finance your invoices, you’ll get a few competitive offers from factor finance companies eager to buy your invoices. Factor bid is free and gives the knowledge and leverage you need to make the best decision for your growing business, and ultimately get the best deal when factoring receivable invoices.

Build your business credit fast with factoring. With predictable cash flow on hand, your business will have access to money to payoff debt, pay overhead, salaries and accounts payables. This will help reduce your  business debt, increase on-time payment history and ultimately improve your credit history so you have more options from vendors and other financial institutions moving forward.

Mange your business operations more efficiently and hire employees to help maintain and acquire new customers. Let’s face it, you can’t do all the work! Let professionals help your business be a success today!

There is no reason your business should have to wait to be paid, while your customers use your money to grow their own business. Get paid within 24 hours of delivering goods and services by selling your accounts receivable invoices for immediate cash flow.

Factoring on the Go! Grab our free financing app called Factor App

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(Wondering about the terminology 101 and where it may have originated from? look no further – Somewhere along the line, “101” migrated out of academic institutional jargon and into popular mainstream slang.)

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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The fastest and most convenient way for small businesses to get funding.

Did you know you can access immediate capital from your accounts receivables? When you invoice a customer for payment, it’s because that customer owes you money for delivery of goods and/or services your business provided.

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Turn invoices into immediate CASH

Factor finance companies are in the business of buying your outstanding accounts receivable invoices for immediate cash. You can sell your open invoices to a factor finance company and get cash within 24 hours of invoicing customers.

Owning a business can be incredibly rewarding, but it can also be challenging when cash management is taking time away from running your business. This can make accessing capital for your business slow and difficult on a consistent basis.

With factor financing, you’ll be able to realize your predictable cash flow each week/month and speed up receiving payments from outstanding invoices. No more waiting to be paid. When you started your business, you didn’t anticipate having to carry your customers by waiting weeks or even months to receive payment. Now that you know about factoring, take back your money and let someone else finance your customers on terms, while you get paid immediately for a job well done.

Factoring is a great way to leverage your business assets (invoices) to gain access to immediate cash. Cash that will help you cover day to day expenses, payroll, supplies, equipment costs, fuel, insurance, taxes and more.

That’s where we come in. We started Factor bid to help small business owners find the best deal when factoring. Factor bid matches your business with the top factor finance companies looking to buy your invoices today! It’s takes about 2 minutes to submit an invoice, and within the hour you’ll have competitive offers from factor finance companies that are eager to earn your business and buy your accounts receivable invoices for immediate cash. The factors don’t mind waiting to be paid, in fact that’s their business model. You on the other hand can do so much more with your money today.

Don’t wait 30,45 or even 60 days to be paid for work you’ve already completed. Visit www.factor.bid and get a few offers from competing factors to buy your outstanding invoices today!

Is your business mobile? Grab the #1 App for small business financing. Download FactorApp for your Smartphone now!

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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.

Get immediate quotes from experts in (invoice factoring) asset based accounts receivable financing.

So you’re in business and you have expenses, welcome to life, thanks for checking in. Did you know you can free-up money that’s been tied up in your accounts receivables? Yep, your receivables are considered an asset and factor finance companies are willing to buy them at a discount of their face value.

If you didn’t start your business to become the financial arm (Net 30-45 terms) of your customers, while their business’ thrive and grow quickly on your dime, then it’s time you discovered factoring your accounts receivable invoices for immediate cash.

[ To watch a quick YouTube video on how to get a few offers from competing factor finance companies to buy your open accounts receivable invoices Click Here ]

Low Risk Business Idea that is Applicable, even Thriving in 2016

Congratulations, you’re an entrepreneur. Now what!? You are passionate about your ideas and have created an amazing product and/or service to be proud of.  But the initial inspiration of going into business for yourself is quickly slowing, even being derailed by the challenges small businesses face managing their predictable finances.  Indeed, to be competitive and stand apart from the competition, having cash on hand to spend will allow you to keep your dream of owning your own business alive, but for how long? Positive cash flow during the critical initial phases of growth and exposure can be the difference between living your dream and/or dealing with a real-life nightmare!

*Fast, Simple  and Confidential – Business Financing (Factor Bid)

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Factor bid matches business owners with factor financiers looking to buy their open accounts receivable invoices. Take the hassle out of funding your business!

If you’ve ever thought about visiting your local bank to get a business loan.., borrower beware and continue reading…;

Simply put-

Many new business entrepreneurs are unable to secure a loan at their local bank due mainly to qualification criteria. Business loans are typically only available to established businesses with at least two years of banking history and substantial assets that are used as collateral against a new business loan.  Unfortunately most of us have to learn the hard way and after wasted efforts and time invested, many business owners will be denied the much needed funds to grow a healthy new business.

So the question now becomes: What can I do to acquire working capital (cash readily available for my business, today) without the hassle and lengthly amount of time invested that goes into taking out a traditional loan or even some other high risk option?

The answer to this question is Accounts Receivable Factoring.  To understand if your business is eligible for factoring, ask yourself this;

1.) For The Business Owner: What do we give away to our customer?

Whether it be specialty cupcakes or a consulting service- all businesses will sell either a product, service, or a combination of both to generate sales.   In layman’s terms “it takes money to make money!” 

2.) For The Business Owner: What did we get in return for our products/services from the customer?

Most of us are familiar with cash.  We like cash, because we can spend it how ever we need to in order to keep moving ahead in business. But there are other forms of payments a business may use to acquire payment in exchange for the sale of a product or service they provide.  One of these methods is called “invoicing” which offers you customers terms and enables them to pay for goods and/or services at a later date in time (typically called a Net30 or Net45, etc.  When invoicing occurs, the business owner creates an asset called an (accounts receivable) for the customer as a promissory note to pay at a later date. This form of payment is known as accounts receivables invoices and is categorized as an asset on the business balance sheet.

So now that we know we can unlock capital that’s being held hostage in our accounts receivable invoices, what’s the fastest and easiest way to find a factor finance company to buy my accounts receivable invoices for the best possible deal.

Glad you asked -Smart business owners trust Factor bid to get a few competitive offers from factor finance companies to buy their open accounts receivable invoices, for immediate cash! Factor bid is simple, easy to use and gets you the knowledge you need to negotiate the best deal when deciding which factor finance company is best for your company.

Factoring has so many benefits besides just lowering your risk in collecting on open and outstanding invoices.  For example; you’ll get years of experience when you partner with a factor finance company, to help streamline your accounts receivables process and even professional advice on how to grow your business more efficiently, while accessing tools that keep your business out of trouble and away from other high risk business partnerships. See a factoring company has your best interest in mind. Why you may ask. Well simple put, the more new customers you acquire, the more new invoices you sent and ultimately the more money you generate the better, both you and your factor finance partner do.

If a factor finance company can help you increase your bottom line, and the increase is greater than their small fee for accessing immediate cash flow for your business, then the relationship makes sense. For example, if you’re netting 10% a year in your business, and a factor ends up costing you 2-3% of your total sales annually, but the next year your business starts seeing a 14%-16% percent net, then you’re making more money than before you started factoring your invoices. Plus your business is becoming more efficient, and you’re getting more work done in less time thanks to some smart bookkeeping ideology your factor finance partner is helping to implement within your business practices.

The take-away from this helpful article is your accounts receivable invoices are considered an asset and should be recorded as an asset on your financial statements.  Why does this matter?  It matters because your accounts receivable invoices can be used as a tool to generate cash from third parties (factors) who are interested in purchasing the  open invoices.  

To get started learning more about invoice factoring (invoice finance) visit www.factor.bid and watch our 30 second video. If you’re not dead sure exactly how factor bid can help you get the best deal when financing your open invoices, then call us direct at (650) 924-3520 and one of our associates can help get you set up to receive competitive offers for your outstanding invoices. It takes about 2-3 minutes to submit an invoice and get the ball rolling on getting immediate cash for your receivables.

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Alternative financing, such as invoice financing on the rise as the economic downturn forces banks to tighten their lending options.

Alternative financing, such as invoice financing on the rise as the economic downturn forces banks to tighten the standard lending reigns.

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Business owners are looking for a more cost-effective substitute to merchant cash advance lines, which are coming under increased scrutiny from regulatory authorities within the U.S. and abroad.

Visit Factor bid to get a few offers to buy your Accounts Receivable Invoices from the top factor finance companies.

Top 5 reasons to think about invoice financing:

  1. Access to cash is fast. The speed and simplicity in which you can increase your business cash flow is unmatched by traditional lending options.
  2. The advance rate is flexible – which means you can get a lot of your cash upfront that is trapped in your accounts receivable invoices.
  3. No long term contract, fixed discount rate for each invoice, no hidden fees can all be negotiated when selecting the right factor finance partner for your business capital needs.
  4. Use as you need service. Factors can fund all your invoiced customers or only specific accounts you agree to. Their position is flexible, which makes it easy for your business to start a partnership and start benefiting from a factors bookkeeping experience, knowledge and consistencies.
  5. When you decide to factor finance your receivables, you’re dealing with the decision makers all the way through the experience. Factors tell you what they can do, depending on several variables like; your clients credit, your annual revenue, the cost of money lending today, etc.

As traditional financial institutions begin to “pull back” from actively lending new money, it’s important for your business to prepare a safety net to ensure predictable cash flow. Insure your receivable money by partnering with a factor finance company so you get paid within 24-48 hours of invoicing customers. Don’t wait 30,45 or even 90 days. Lower your company’s liability today, by factoring your receivables.

To get access to working capital financing and credit-risk protection, go to www.factorbid.com and you’ll get a few competitive offers to buy your accounts receivable invoices, from the top factor finance companies in your industry. Get factor bid and get the power and knowledge you need to negotiate the best deal when factoring your outstanding invoices for immediate cash!