Grow your Small Business with financing help

How to grow your small business. Small to Mid-Sized Businesses are always looking for strategic ways to grow and become more profitable.

A good rule of thumb, make sure you have your capital contribution locked down as one of your very first preparation steps.

Funding can come from a variety of sources, including personal funds, a bank, outside investors and your accounts receivables.

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The First 3 Funding Options You’re Most Likely Already Familiar With:

  1. Personal Funds – Reach into your savings to fund your business growth, hire employees, cover day-to-day expenses and so on.
  2. A Bank – Drive down to your local bank, fill out paperwork and wait to see if you qualify for small business financing.
  3. Investors – Work up a business plan, executive summary, proforma, 5 – year profit and loss projections and start shopping your idea around to potential incubators and/or angel investors.

But number 4 you may not be as familiar with. Using your accounts receivables (money your customers already owe you) to finance your business growth. Get paid faster by reinvesting your earnings sooner with invoice financing.

Invoice financing has been around forever it seem, and small startups to huge companies like Snapple use invoice financing to increase their daily working capital and grow their businesses more quickly.

How Does Invoice Financing Work?

It’s pretty simple really. You invoice your customers for payment, and typically they send you a check within 30-45 days. What if you could instead invoice customers and get paid within hours! With invoice financing you can!

Invoice financing uses assets from your business (your accounts receivable invoices) to get your business immediate cash flow to hire additional employees, afford business expenditures, cover payroll, service new accounts and keep your business competitive in your industry.

If you’re not utilizing your invoice receivables as assets and your competitors are, they may be getting a leg up on you by affording them an opportunity to service new larger customer contracts and extend terms to those larger customers.

Don’t be forced to use your own profits to fund your customers business growth when offering net-30 to net-45 terms, instead use an invoice financing company and their money to fund your terms and strengthen your customer business relationships.

An invoice finance company will buy your invoices for immediate cash, so you get your money immediately and can reinvest in growing your business faster instead of waiting for payments while your customers use your profits to grow.

If you’re comfortable with the idea of selling your accounts receivable invoices for a small discount, in order to get paid immediately, then you should explore the benefits of invoice financing.

Get A Few Offers To Buy Your Accounts Receivable Invoices For Cash!

It’s recommended that you get a few offers when deciding which invoice financing company is right for you. You can visit www.factorbid.com and within a few minutes, you’ll have a few competitive offers from invoice finance companies to purchase your accounts receivable invoices for immediate cash. Factor Bid is free online business resource that you can use to get competitive offers from finance companies. You’re under no obligation to use any of the companies competing for your business. Factor Bid is completely free.

Get the knowledge and leverage you need to negotiate the best financing deal for your growing business at Factor Bid.

On The Go – Grab Factor App For Fast Invoice Financing Offers!

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

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

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

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

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

SLOW-PAY RECEIVABLE ACCOUNTS ECONOMIC SUPPLY CHAIN KILLER

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When asked –

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

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

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

On-time cash flow, the difference between growing business or going out of business

Working capital in today’s fast paced business world is proving to be a necessity. You gotta have cash today or face the consequences tomorrow.

Use to be that money on the books meant you really had nothing to worry about, right? Customers owe you money, you invoice those customers for payment and eventually when they get around to it, you get paid. They promise you payment, you promise others payment and so on and so forth.

So businesses start running accounts payables based on outstanding receivables, anticipating payments from extending terms to their customers and then budgeting their financial responsibilities accordingly. Until this happens.., your customers slow-pay or worse- don’t pay altogether. Now what? You’ve got bills due, promises to keep and you’re expecting that check; but now your customer is telling you you’ll have to wait.

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Waiting on accounts receivable payments can add a huge amount of stress to a business, not to mention the business owners. Many businesses run on razor thin margins in order to stay competitive, and don’t have the funds in reserve to finance slow-paying customers or cover payments for customers that don’t pay.

Take a look at your business operations today. If even one of your top 3 customers didn’t pay, could you continue to operate at the highest level of business operation or would it send your business in a downward tailspin of financial distress?

REDUCE, REDUCE, REDUCE and REPEAT

Reduce your liability in open accounts receivables. Reduce the amount of time spent collecting money owed to your business for goods and services that you’ve already delivered. Reduce bad-debt by unlocking capital trapped in your open accounts receivable invoices.

Factor finance companies have lots of money. They want to share their money with you and get you paid immediately for your invoices, usually within hours of invoicing your customers. Factors don’t mind waiting 30, 60 or even 90 days for your customers to pay up. They make a little bit of money by assuming responsibility of collecting the owed money and keeping your cash flush and on-time so you can keep running your business at the highest and best level.

Factoring your invoices enables you to get paid immediately. Think what you could do with more working capital right now.

  • Pay off higher interest loans
  • Purchase new equipment to increase productivity
  • Hire additional employees to help bring in new customers
  • Pay suppliers in advance to receive discounts on your purchased orders
  • Invest the money to expand your business model and generate additional income

However you decide to use your money, accessing it within hours of invoicing your customers will give you the leverage you need to stay competitive and grow your business brand much faster.

Choosing the Best Factor Finance Company in 3 Simple Steps

  1. Go to www.Factorbid.com
  2. Click “Get Started” button
  3. Choose the best available finance offer available today

Factor Bid gets you competitive offers from the top finance companies in that specialize in your industry. You’ll quickly be matched with the best rate, terms and offers today. Factor Bid is real-time and when finance companies now they’re competing for your business, they’re going to give you their most competitive offer right away or face loosing your business to one of their competitors.

Get the knowledge and leverage you need to negotiate the best financing deal for your growing business. Don’t risk not getting paid or the stress that comes with financing your customers while their businesses flourish and yours waits to be paid. Trade in those outstanding invoices for immediate cash flow and focus your time on gathering new customer accounts, not collecting money from completed work.

Factor Bid is a free online business resource for small to mid-sized business. You’re under no obligation to finance. Try it today to find out how much working capital your business can access!

We’re brand new to factoring (invoice finance) what do we need to know on day 1?

We’re new to factoring (invoice financing) our business is growing quickly and we need more capital to hire more employees and pay our weekly expenditures. What do we need to know, day 1?

-First

How Do I Find The Best Factor?

That’s an easy one. Companies that want the best deal use Factor bid. At Factor bid, factors compete to buy your accounts receivable invoices, so you get the best deal when factoring.

-Second

What Do You Ask

Scenario:  You have an open accounts receivable invoice on your desk.  You want to get cash for that invoice now instead of waiting the 30, 60, or even 90 days.  You heard about factoring, but know you are not informed enough to make sure you are getting the best deal.  Maybe you ARE informed enough, tried to factor, and did not get the best deal.  Ta-Da:  THAT IS WHY FACTOR BID WAS CREATED!

In this blog, let’s go over some key terms you will hear and what questions you should ask when choosing a factor that is right for your company.

Keep in mind that factoring your open accounts receivable invoices for immediate cash is much different that going to a bank for a loan.  Factoring is NOT a loan, you won’t be dealing with a bank.  As there are many different types of business financing, so there are many different factors financiers that serve a wide variety of needs with a wide variety of terms.  Not to worry, factor bid has you covered. We make it easy to find the best factor for your business needs. Our database of factor finance companies is the best in the world. Our software matches your business with the top factor finance companies in your specific industry, so you get the best offers and the factors with the most experience and knowledge in servicing your industry.

Let’s Start

Key Terms To Watch For

  • Accounts Receivable Invoice (A/R):  An invoice provided to a client stating that goods and/or services have been provided and payment is to be made in a particular time frame.  In the case of factoring, the accounts receivable invoice is also an asset that can be leveraged/sold for money.  A/R is found on the balance sheet and is an asset because it is to be paid within 90 days or less.
  • Advance:  The money that your company receives when your invoice is purchased by a factor.  The amount advanced is usually a percentage of the face value of the accounts receivable invoice.
  • Advance rate:  The percentage or amount of the accounts receivable invoice that will be advanced/paid.
  • Concentration:  The percentage in which a factor will fund a single customer you have.  
  • Confidential factoring:  Your customer is not informed that you are factoring their account / invoices.
  • Credit limit:  This financial limit is placed on your customers and is based on their credit rating.
  • Debtor:  The person or entity that owes payment on the open accounts receivable invoice, usually referred to as (your customer).
  • Factoring:  A Business that sells their accounts receivable invoices to a third party (called a factor) at a discount of the gross amount of the invoice face value; for immediate cash.
  • Factoring charge:  A charge for taking over the administration, collection, and processing of the accounts receivable invoices, usually by your factor finance partner.  
  • Factor fee:  The fee a factor charges in order to finance your accounts receivable invoices.
  • Factor financier:  The financial entity who purchases accounts receivable invoices at a discounted rate.
  • Funding limit:  The maximum amount of funding a factor finance company will pay you.
  • Funding period:  This is the period in time where the factor purchased the invoice and when your customer pays in full.
  • Non-recourse:  This is the sale of the asset (outstanding accounts receivable invoice).  The factor assumes ownership of the receivable and the risk of collecting the debt.
  • Notice of Assignment:  A notice that your customer (the debtor) receives stating that their invoice has been factored.  This notice also provides the customer with the new payment address and/or process. “Chances are, if your customers pays slow, their already being factored by their other vendors, thus eliminating any fuss over you wanting to factor their slow-paying invoices.” 
  • Reserve:  A certain amount of funds that is set aside by the factor to cover bad debt expenses and payment shortages. (ie., kind of like an escrow account)
  • Seller (Transferor):  The one who owns the open accounts receivable invoice, but relinquishes ownership by selling it to a Factor.
  • With recourse:  The factor has the right to collect unpaid payments from the seller, in the event the debtor (your customers) does not make good on the payment / invoice.

 

Questions To Ask When Choosing A Factor That Best Fits Your Business

  1. Do you provide non-recourse factoring?  If so, what is the difference in the rate?
  2. What is the length of the contract?  Factors will typically want to partner with you for 12-24 months to have the opportunity to purchase more open accounts receivable invoices. This will also help them understand how your business operates so they can help you increase your profits and become more successful. 
  3. How fast can I expect to receive payment?
  4. Can my payments be deposited into my checking account, same or next day?
  5. What is your discount rate?
  6. What is your fee for late charges?
  7. Do you help us collect payment from late/no pay debtors?  How?
  8. Can I stop factoring any time I want?
  9. Is there a penalty to stop factoring?
  10. What if I want to factor with another company?  Is that OK?
  11. If I refer a friend’s business, do I receive a referral reward?

-Finally

We’re sure you’ll have other important questions that specifically affect your business. Here is a good tip, write down all your questions (preferably in an email) and send them to each factor that provides you a competitive offers; after submitting your invoices using factor bid on your desktop or download Factor App for your smartphone.

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Myth Busters in Factor Financing ‘invoice financing’ your account receivables.

Myths Busters in Factor Financing:

Myth 1:  My credit is horrible.  I am going to get charged the max at the worst possible rate!

CHECK:  When you finance your open accounts receivable invoices, factors consider the creditworthiness of your client – not you.  Factors want to know the likelihood that YOUR CUSTOMER is going to pay you on time.

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Myth 2:  I do not want another loan.  I have enough payments I have to make!

CHECK:  Factoring is not a loan.  In fact, you cannot walk to your local bank and factor. Factors pay you for your open accounts receivable invoices at a discounted rate.  They are paying you upfront for work you have already completed.  Think of it like a cash advance on your paycheck, but even better!

Myth 3:  I am losing money if I sell my open accounts receivable invoices at a discount!

CHECK:  You are losing money when you have to wait 30, 60, or 90 days to get paid.  We have all heard the expression, “Time is Money,” and “Money on time is better than money late.”  In fact, you can build in “The Hard Cost of Factoring”, by simply adding an administrative charge to your service or product offering when invoicing your customers.

Your customer chose you because you’re the best at what you do and after partnering with a factor, that has an excess of resources such as; Credit checking, back office support, administrative assistance and years of experience and advice from your account manager, your customers will easily realize the benefits of a professionally run back office business relationship – from factor financing your receivables.

Myth 4:  If I use Factor Bid, I am going to have to pay a fee.

CHECK:  Factor Bid is a FREE resource for small-medium sized businesses. You’re under NO OBLIGATION TO FACTOR. Factor bid gets you a few competitive offers from factor finance companies that want to buy your outstanding receivables for immediate cash!

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Myth 5:  Factor Bid is going to obligate me into choosing a factor, even if I don’t like them.

CHECK:  Factor Bis simply matches your business invoices with the top factor finance companies who finance open accounts receivable invoices within your industry.  You will receive a few offers to buy your outstanding receivables for immediate cash. When factors know they’re competing for your business at the exact same time, you’re going to get the very best offers available, in order to earn your business and trust today! 

Myth 6:  No one factors their invoices!

CHECK:  Smart business owners factor all the time.  They know the value of a dollar and the benefits of getting paid right away.  From industries such as freight transportation factoring, construction factoring, healthcare factoring, technology factoring, manufacturing factoring, staffing factoring and more. Millions of businesses factor their open accounts receivable invoices every day and because of it enjoy very profitable businesses. Did you know that Snapple factored it’s receivables for years to grow one of the most successful distribution models still in use today?

Myth 7:  I have never heard of factoring!  This is a scam and a new way people are trying to get my money.

CHECK:  Factoring has been around for thousands of year.  Have you ever heard of the Mayflower or the settlement at Plymouth?  That’s right!  The whole expedition was funded by factoring.  Factoring is even documented during the Roman Empire.  Check out your Balance Sheet.  Do you see Accounts Receivable under the Assets column?  An Asset can be tangible or intangible, owned or controlled, and has positive economic worth.  You are sitting on an asset that can (and is still being today) leveraged for immediate cash.

Myth 8:  Factors don’t care whether I grow my company.  They are only in it for themselves.

CHECK:  It is in the best interest of the factor that you grow your company.  When you grow, you produce more invoices, which means MORE invoices for factors to finance and ultimately MORE CASH in bank at the end of the year. If you do well, they will do well. It’s a win-win for both your growing company and the factor financiers company.

Myth 9:  I can factor with the banking institution I have banked with my entire life.

CHECK:  You cannot walk into your bank and expect them to factor.  Banks are set up to deal with loans, not purchase your assets at a discounted rate.  Remember, you are selling your open accounts receivable invoices.  Banks do not purchase anything because their purpose is money lending/investing.  Factor financier’s exist to PURCHASE your business assets (invoices) for increased capital for your business. Yes they do charge a fee, but they also assume risk in advancing you a large part of your invoice within 24 hours so you don’t have to wait 30-45 days for your customers to send the check.

Myth 10:  It is a hassle to factor and will take up a huge amount of my time.

CHECK:  With Factor Bid, you are now quickly matched with factor financiers within your industry who are competing for your business.  In exchange for two minutes of your time, Factor Bid will save you hours of research, thousands of dollars in missed opportunity and the knowledge and leverage you get from receiving a few offers to buy your receivables. We even offer terminology you need to know and questions you need to ask when each factor finance company competes to win your ongoing business.  I know, I know, we are truly awesome, and FREE!

Myth 11: There is no Factoring App for invoice financing.

CHECK: Go Mobile – Download Factor App for Apple and Google Smartphones and start factoring from anywhere.

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The Accounting of Factor Financing (invoice finance)

The Accounting of Factoring

I understand the challenges of starting your own business and opening the doors for the first time.  I also understand the challenges of being in business 1 year, then 2 years, 5 years, etc.  Each subsequent year brings its own successes and challenges.  At Factor Bid, our staff have experience in start-up companies, customer service, and all the business management pieces necessary to running a successful business.  We are here to help you and be that FREE RESOURCE when you want to receive offers for your open accounts receivable invoices.

With that in mind, this article will focus on some basic accounting knowledge to help you understand how your accounts receivable invoice is able to be leveraged as cash.  Let’s dive into the world of the BALANCE SHEET!

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What is a balance sheet?  A balance sheet verifies that a business’s financial records are, well,  “balanced.”  It tracks Assets, Liabilities, and Owner’s Equity.  How does the balance sheet balance?  That’s simple.

Assets = Liabilities + Owner’s Equity

The amount in the Assets column will always equal the amount in the Liabilities and Owner’s Equity column.  If it doesn’t, there’s a mistake somewhere.  Essentially, the balance sheet provides a quick snapshot of how your business is doing financially on any given day.  It is usually calculated quarterly or at the end of the year.  This is an important document when applying for grants, loans, submitting taxes, or looking for potential investors.

O.K., but what is an asset?  This is an important question to ask, especially when considering to factor.  An asset is anything tangible or intangible that can be owned or controlled to produce value and is held to have positive economic value.  So, if your open accounts receivable invoice is considered an asset, it fits these three criteria.

Your open accounts receivable invoice:

  • Can be owned or controlled
  • Produces value
  • Has positive economic worth

 

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Look at the balance sheet above on the third line down, column 1.  Do you see Accounts Receivable?  This is also referred to as A/R.  That $6,200 reported next to Accounts Receivable represents the amount of money this company has billed to someone for a product/service delivered but they are now awaiting payment from the customer.  As Accounts Receivable Invoices are due within a short amount of time, usually within 30 days but no more than a year, it is considered an asset (as reflected by the column header).  

As an Accounts Receivable Invoice is an asset, factor finance companies will pay cash for that invoice  because it, 1.)  Can be owned or controlled, 2.)  Produces value, and 3.)  Has positive economic growth.  It is an asset.  Just like a bank holding the title of your car (asset) until it is paid off, a factor financier will take ownership of an open Accounts Receivable Invoice (asset) until it is paid-off in full.

Who is willing to pay cash for my outstanding accounts receivable invoices?  Factor financiers eagerly want to partner with businesses who produce accounts receivable invoices so they can purchase that asset at a discounted rate.

What if I am less than creditworthy?  It does not matter.  The credit ranking of interest to the factor financier is not you, but the person/business you are awaiting payment from.  You see, the factor financier is only interested in the likelihood that your customer is going to pay, not you.

But what happens if a customer does NOT pay?  Where does that amount go on the Balance Sheet?  I am so glad you asked!

This, my friend, is called a bad debt expense.  A bad debt expense is the amount of an outstanding accounts receivable invoice that has gone uncollected.  Unfortunately, it also reflects the credit choices a business made when extending credit to their customers.  In accounting, you can report this loss in one of two ways:

  • Direct write off – The amount of the unpaid invoice is charged directly to bad debt expense.  In order to maintain balance to the Balance Sheet, you debt the bad expense account and credit your accounts receivable account.  It does not show a reduction in sales, but increases your expense.
  • Allowance Method – A business estimates the amount of invoices they think will remain unpaid.  So, if a business knows that, historically, 4% of their accounts receivable invoices go uncollected, they would subtract 4% from the Accounts Receivable amount and record the difference.

What does that have to do with my business, you may think to ask?  Everything!  Having a lot of bad debt expense can prohibit you from growing as a company, meeting your business needs, and even securing a loan or prospective investors.

When you factor finance your outstanding accounts receivable invoices, you are doing a few REALLY SMART things for your business:

  • Limiting liability
  • Keeping debt off the books
  • Freeing up cash to grow
  • Gaining a partner to help manage those invoices

How much does it cost you, really, to manage all those open accounts receivable invoices? When you partner with a factor financier, they own the invoice and manage it for you. What does that mean when you have 10, 20, 30, or more invoices you process a month: HUGE ADMINISTRATIVE SAVINGS while having ACCESS TO HUGE AMOUNTS OF CASH!

To learn more, click on the YouTube channel on the Factor Bid website.  You can also submit an invoice and receive a few competitive offers from factor financiers who eagerly want your business and who work within your industry.  Life is good with Factor Bid.

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We’re a new business and needed cash flow to fund new opportunities. Can we afford to grow.., Can we afford not to grow!

Visit www.factor.bid to get immediate cash for your open accounts receivable invoices!

factor finance,construction factoring,invoice finance,accounts receivable finance,factor bid,factor app,receivables finance,finance,asset based lendingAre you like us; have you ever been in the situation where your business needs money to cover day to day expenses, pay employees, buy supplies and/or compete for new business contracts?

In 1998, Ron and I decided to start our own business, R & J Construction.  We borrowed money from the bank to build our office and purchase supplies and equipment.  Although I would like to say our business was thriving, healthy, and self sustaining overnight, that was far from the truth.  We had smaller clients here and there, but not enough consistent workflow to allow Ron to quit his full-time job.  With the additional business expenses stacking on top of our personal ones, we spent our days living paycheck to paycheck and working 80 hours a week just to meet our minimum bills.

At the time, our kids were not old enough to be in school.  While I was at home with the children, I began to make phone calls in order to reach new customers.  When Ron came home from work, he visited client sites and worked on proposals and took jobs that could be completed on the weekends or through subcontractors.

Within a year, Ron was able to quit his 9 to 5 job and devote all his time and energy into making R & J Construction a success.  One of the challenges we faced was growth that we could not financially handle.  Our business was too young to have any real established credit, but old enough to begin handling some pretty big money projects.  Two big questions had to be answered:

  • Can we afford to grow?
  • Can we afford not to?

Obviously growth was in our best interest, we just weren’t getting our best “interest” from the bank!  We had tons of jobs but only received 20% down, enough to cover some of the material costs involved but definitely not the labor or other necessary business expenses. With quite a few outstanding accounts receivable invoices piling up each month, we had plenty of trips to make but no gas to get there.

Around this time, I had an acquaintance tell me that all those invoices we were waiting to receive payment for could be leveraged for immediate cash.  This was not a loan.  This was good news to us as we had already tapped out our bank.  I began doing some research and discovered that the factor finance companies were less interested in our credit, and more interested in the credit and financial stability of businesses who owed us money.

I spent a considerable amount of time doing my homework, asking the right questions, and finding a factor that was a good match for what we needed.  However, once I partnered with them, I significantly decreased the amount of time spent on processing all those accounts receivable invoices and calling late paying customers.

With Factor Bid, I can now get a few competitive offers from factors who specifically finance invoices within my industry.  It’s fast, easy, and provides the information and leverage necessary to make a quality decision and get the best deal when factor financing our accounts receivable invoices.

Not all factors are alike. Some only factor in niche industries and not all of them deal with smaller businesses like ours. Factor bid is great. All you have to do is submit an invoice using your Smartphone or computer and within minutes you’ll get competitive offers from factors that are eager to buy your accounts receivable invoices for immediate cash!

We love it! Try factor.bid -you’ll be glad you did!

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Accounts Receivable Invoice Finance for Service Providers. Service Provider Invoice Finance!

Service Provider Invoice Finance! Accounts Receivable Invoice Finance for Service Providers. Get a few offers from top factor finance companies when deciding on the best factor finance partner for your Service Provider Business. www.factor.bid

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Business Owner:

With 25 plus years of experience within the contractor community, specializing in Storm Region Rain Water Runoff infrastructure design, maintenance, and repairs, Jim Hinkley decided to venture out on his own. “I had many solid relationships with corporate and city engineers as well as project managers that is made sense that it was time to get out on my own. I used my 401k savings to purchase vehicles and specialized equipment that we needed to start.”

Like many new businesses, David relied on the most readily available funds he had access to. “We grew rapidly over our first few years and many of my customers helped support our much needed cash flow by paying us in a shorter amount of time than usual (provided I gave them a discount off our services for paying before the net 45 due date). This became stressful for us and our profit model started to suffer from discounting our services. Even when our customers would agree to pay early for the discount, it always seemed their receivables payment would reach us a day or so earlier than 45 days, it was nothing like a month early like we hoped. As our reputation grew and we expanded, the close relationships that were helping to support our cash flow were simply not there, plus we were tired of discounting our in-demand services. I wanted the business and had to find a solution to support my growing payroll.”

Jim’s banker recommended factor.bid website. “I was surprised how easy, accessible and cost effective factor financing was.” Factor bid got us a few offers on our outstanding accounts receivables, and we selected the factor financier that best fit our growing needs. It’s really been great, had I of know about factoring 2 and a half years ago, we could of quit discounting our services and made a lot more profit! In addition to the immediate funds we got for our open invoices to cover payroll on time, I also benefited from comprehensive professional reporting; credit monitoring and best of all peace of mind.”

A SMART BUSINESS FINANCE TOOL CALLED FACTORING

It’s easy for any small business service provider to get in over their head in todays economy. In the service provider industry, a company can grow very quickly by word of mouth. Solid business relationships build up when you’re starting up help drive new customers and referrals. However, after some time, those relationships tend to cool as customers get into the habit of regarding you as just another service provider.

You go from being everyones best friend, when you’re a new business to eventually being that company doing a professional job in a professional manner. Customers that use to make sure they paid you before the invoice date or even weekly, soon start to roll you into their accounts payable cycle of net 30, 45 or 60. Waiting to be paid for that amount of time can create a financial strain on your day-to-day business operations.

You can’t be upset with your customers, for following traditional accounts payable methods. What you can do is simply take advantage of invoice financing within your business. To be able to access immediate cash for your outstanding invoices, plus relieve your company’s liability in collecting the funds on-time or before the agreed upon due date.

Your new factor finance partner is going to become part of your back office for accounts receivable. They have the proven experience and team of business professionals in house that will help your business operate more professionally and become more profitable quickly. It’s in the best interest of the factor finance company for your company to be more profitable, they’re going to do everything they can to help you check on prospective new customer deals, collect efficiently from good standing long-time customers and make sure you have the cash on hand you need to increase your foot print within your industry.

To find the best factor finance company that services your industry, and get a few offers from those factor finance companies, make sure and do what other small-medium sized business owners have already discovered; Factor.bid -where factors compete for the opportunity to buy your outstanding accounts receivable invoices for immediate cash!

CASH FLOW SOLUTION YOUR BUSINESS CAN COUNT ON

Factor finance is more about your customers credit and payment history, not yours. Factor finance is based off of the assets your business in generating every week, called accounts receivable invoices.

As a service provider, your clients count on your services to make their lives better. In exchange, your customers will eventually pay their invoices. As a growing business, you also need a finance partner that makes your life better. An invoice finance provider (factor) provides you with predictable cash flow so you can cover business expenditures, payroll and new business opportunities.

Factors don’t run your business credit score and won’t make you wait days for an invoice finance decision / offer. Get the cash you need to make payroll, purchase additional equipment and expand your business to stay competitive in your local area and industry.

TO GET A FEW OFFERS FROM THE TOP FACTORS FINANCIERS IN YOUR INDUSTRY

Download Factor App -and within minutes you’ll have competitive offers to buy your invoices for immediate cash!

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Technology Invoice Finance

Technology Invoice Finance. Get the best results for your technology company by financing your accounts receivable invoices for immediate capital.

It’s recommended that you use Factor.bid when choosing the top factor finance company that best matches your small – medium size business. Get a few offers from industry specific Factor finance companies that specialize in financing internet technology receivables.

When Factors compete to buy your receivable invoices so you get the best deal when factoring. Watch the video to quickly learn more about Invoice Technology Finance!

Learn more…

What are some of the benefits of Non-Recourse Technology Factoring!

Factor finance companies will purchase your company’s outstanding Invoices, Credit Card Receivables, Accounts Receivables and more so your business gets between 85 – 95 percent of the invoices face value in as little as 24 hours.

Technology finance provides your internet technology company with predictable cash flow to more accurately cover things like payroll, eliminate cash flow problems, expand your products and services into new markets, augment your offering and best of all access fast cash that doesn’t live on your books as debt.

Your business accounts receivable invoices are assets, start treating them like so! 

Example of how Technology Invoice Factoring Works!

By using Factor bid (to get a few offers from the top factor finance companies) – You’re matched with the top factors that specialize and understand invoice technology financing. They understand your expenditures and revenue stream and can help design a better system to grow your business more efficiently.

Not all factor finance companies are created equal. It’s recommended that you use Factor.bid to get a few offers when selling your receivables at a discount in order to get the very best deal when financing your receivables.

Your company’s financial history and credit score do not determine if you’ll be approved for financing. In most cases the factor is looking at the credit worthiness of your customers, the ones that have agreed to pay in accordance with your open invoices.

The factor finance partner you choose will also help you decide if new customers you may start working with are a good choice; if they pay their bills, how much risk is involved with invoicing them for net future payment, etc.

The factors main objective is to help you increase deal flow. The more accounts receivables your company is producing, the more invoice inventory available for purchase. The factor wants your company to make more money! It’s in their best interest to see you succeed, unlike a traditional lender that requires personal collateral, that can be collected against  you, if you fail.

Factoring is a smart way to fund your growing business and leverage your accounts receivable invoices for access to immediate cash flow capital. Grow faster and increase your marketshare, your factor financier will be right there along the way to make sure your cash flow positive to get work done.

We think you’ll agree that once you start utilizing technology factoring, your business will grow faster and larger than ever before.  There is no obligation when using F

For technology factoring on the go, grab Factor App for iOS and Android Smartphones. Available now!

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What Factor Finance IS, and IS NOT.

What Factor Financing IS and IS NOT (accounts receivable invoice financing)

Factor Financing is a financial transaction where businesses sell open accounts receivable invoices to Factor Financiers at a discount.  Your open accounts receivable invoice is the asset which factor financing companies want to leverage to support your immediate cash needs.  This type of financing provides an easy and flexible way for business to get immediate cash to grow their companies, pay employees, purchase new materials, and cover operational costs.

There are three important players in this type of transaction.  Player 1:  The factor financier who purchases the open accounts receivable invoice.  Player 2:  The business who sells the open accounts receivable invoice.  Player 3:  The debtor who has the financial liability to fulfill and pay the invoice in full.

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Does Your Business Qualify as a Good Factor Finance Candidate?

Businesses often have multiple outstanding accounts receivable invoices each month. Each invoice represents work that has been completed but payment has not yet been received.  Two scenarios present themselves that can hinder the operations and growth of any company:

  • Scenario 1:  Your business receives a down payment for work to commence.  This deposit usually covers some of the material cost and man hours involved, but not all of it.  Your company must take on the financial liability for the remaining material, labor hours, and operational costs incurred by your company during the duration of the project.  The job is completed and the client is provided with a bill for the outstanding balance.  This creates an open (or outstanding) accounts receivable invoice sitting on your desk waiting for the check to come in the mail.  The accounts receivable invoice remains in an open or outstanding status until the money is received.
  • Scenario 2:  Your company has a product or service that is provided same day. However, the customer has a certain amount of time to pay for the product or service AFTER they have received it.  Some customers have a great track record for paying right away.  Other clients, however, take 30, 60, or up to 90 days to pay.  Worse case scenario, they do not pay at all.  Your company now has to decide on the appropriate course of action for late or no payment clients.  This can be a daunting task and is not to be taken lightly.  You do not want to lose a steady client who pays — but always late.  However, you need to set the precedence, outlining that late payments are not favorable and any such type of activity should be met with late payment stipulations, like additional financial compensation for your business.  For clients who have not paid, it is easy to decide not to contract with them in the future.  At the end of the business day, there is still the issue of that open accounts receivable invoice sitting on your desk that needs paid!  Small claims court is costly and the time it takes for you to file a claim, pay the fee, provide the proof of service/terms, and take a day off of work to go to a courthouse–just might not be worth it. Even if you do win a judgement in small claims court, your not out of the woods yet, you still need to find a way to collect on the judgement, which usually cost you more money to hire a representative to try and set up some type of garnishment and ongoing fee collection from your winning judgement. 

If you can identify with either of these scenarios, whether on an ongoing basis or every so often, Factor Financing is a great solution, and can help protect your business from encountering these type of financial burdens, plus help in collecting money owed to your business is paid in a timely and consistent manner.

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SHOW ME THE MONEY!!!!

You have to love the simplicity and directness of Jerry Maguire, “SHOW ME THE MONEY!” As a business, you were created to provide an exceptional product or service that fills the needs and/or wants of your customers.  We know you would love to do it for free if you could, for the betterment of humanity, but the simple fact of the matter is:  you have kids to feed, bills to pay, and a roof you need over your head.  This is the same for your business.

You have employees that are counting on you for their paychecks.  They have bills to pay. Your staff wants you to be successful, healthy, and grow so they can reap the benefits of a steady job and income.  The last thing you want to happen is to run dry of funds to pay the electric bill; incur layoffs, and stagnate in the market.

When you have funds locked up in outstanding open accounts receivable invoices, that is untouchable money that you have already earned.  You provided the product/service and have not reaped the benefit from it yet.  If you were able to have all that CASH in hand, SAME DAY, what would that look like for your company?  WE KNOW YOU COULD COVER:

  • Day-to-day business expenses
  • Payroll
  • Hire new employees
  • Buy supplies and equipment
  • Reduce liability
  • Secure new customer contracts and more!

So now when we say “Show me the money” you know with the help of a factor finance company, this is entirely possible. Your invoices can get you paid today! It’s recommended that when choosing the top factor that is right for your company, you visit Factor.bid and submit an invoice to get the ball rolling. At Factor bid factor finance companies compete to buy your open accounts receivable invoices, so you get the best offers when factoring your receivables for immediate cash.

GO TO FACTOR BID TO GET A FEW ACCOUNTS RECEIVABLE INVOICE OFFERS

Go to http://factor.bid to upload an open accounts receivable invoice.  Within the hour, you will receive a few phone calls from factor finance companies with a few account receivable invoice offers.  Factor finance companies will compete for the opportunity to earn your business. And you better believe that when they know you’re using Factor.bid to sell your invoices, and they’re competing against other Top Factor Finance Companies right now – they’re going to give you the very best offer available today!  

We Made It Even EASIER To Get Accounts Receivable Invoice Offers

On the go, use your Smartphone to get Factor App – Download FactorApp for your google android and/or apple app store account; Snap a picture or upload a copy of your open accounts receivable invoice, and within no time at all you’ll have offers from the top factor finance companies – eager to help your business grow and become more successful.  It’s THAT EASY!

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Factor App for iOS Apple Smartphones

Factor App for Google Android Smartphones