Growing Your Supply Company With Medical Factoring

Medical supply companies in general are very profitable enterprises. However, most medical supply companies operate on a very tight cash flow. Unfortunately, the challenging billing procedures and slow payment cycles of insurance companies, HMOs and Medicare/Medicaid create a situation where many companies wait 30 to 60 days before getting paid.

Cash flow can get even tighter if the company?s sales grow, or if the owners decide to open new locations. When this happens, most company owners try to obtain bank financing through a loan or line of credit. However, qualifying for bank financing is incredibly challenging as they will only lend money to a business that shows profits for three straight years and can provide audited financials.

There is a financing alternative in the healthcare industry that has been used with success with medical supply companies. This solution provides you with quick financing based exclusively on your sales. Furthermore, since financing is tied to sales, the line of financing grows as your sales grow. The solution is to factor your medical insurance claims using medical receivables factoring.

Medical factoring provides you with immediate financing based on your slow paying insurance and Medicare/Medicaid claims. Rather than waiting 30 to 60 days to get paid, with medical factoring you can get paid in a few days. This frees up significant cash, allowing you to finance operations, and more importantly, to buy supplies and fuel new sales.

As opposed to bank financing, where the bank lends you money, the factoring company buys your invoices and pays you immediately for them. The process is fairly straightforward. But more importantly, this also means that you are free from the traditional bank lending requirements. Medical receivables factoring is easier to qualify for, and often, the owners? personal credit is not a consideration.

Factoring your medical receivables can be an ideal solution for your medical supply company if your main challenge is that you cannot afford to wait up to 60 days to get paid by insurance companies. If that is the case, medical factoring should provide you with the working capital you need to operate and grow your business.

About Invoice Factoring Group - http://factoring.qlfs.com We can provide you with a free medical factoring, medical receivables factoring or invoice factoring quote for your healthcare company. Marco Terry, the president, can be reached at 1 866 730 1922 or at http://factoring.qlfs.com/html/medical_offices.htmlCommercial Capital LLC.

Growing Your Trucking Company With Freight Factoring

Trucking companies are one of the most cash hungry businesses in the transportation industry. There are driver expenses, equipment expenses and fuel expenses. However, trucking companies can also be very profitable, if cash flow is managed properly.

One of the main challenges that trucking company owners face is that freight bills can take as long as 60 days to get paid. This puts them in a tough spot, because unless the company has a significant amount of cash in the bank, it usually cannot afford to wait to get paid.

Usually, the owner will try to go to the bank to obtain financing hoping that a loan or line of credit might solve the problem. Unfortunately, banks will seldom finance businesses that have less than three years of audited financials that show consistent profits. Of course, if the trucking company could provide three years of financials that show profits, it would not need financing.

A better solution is to use freight factoring. Freight bill factoring enables you to convert your slow paying freight bills into cash by selling them to a factoring company. This provides you with immediate financing and allows you to cover all your ongoing business expenses. Also, as opposed to bank lines of finance, freight bill factoring automatically grows as your sales grow, providing you with flexible financing.

The process is simple. The factoring company buys your invoices and pays for them up front. The transaction is typically done in two installments. The first installment is called the advance and the invoice factoring company provides you with up to 90% of the invoiced amount. The remaining 10% is held as a reserve to cover disputes or charge backs. The remaining 10% (less a fee) is rebated as a second installment, once the invoice is actually paid.

The factoring fee is based on how long the invoice is factored for and the monthly volume of factored invoices. Discount rates average between 1.8% and 4% per month based on these parameters.

Most factoring companies buy invoices using a non-recourse factoring. Under a non-recourse agreement, the factoring company bears the risk of non-payment if your client becomes insolvent or goes out of business. This is a nice benefit of factoring and increases the peace of mind of business owners.

Freight bill factoring is an ideal solution for a new and emerging trucking company, and provides you with the necessary financing to operate and grow your business.

About Invoice Factoring Group - http://factoring.qlfs.com We are a factoring company that can provide you with a freight factoring, freight bill factoring and accounts receivable factoring quote at no cost. Marco Terry, the president, can be reached at (866) 730 1922 or at http://factoring.qlfs.com/html/freight_bill_factoring_for_tru.html Commercial Capital LLC.

Growing Your Business With Accounts Receivable Factoring

Having to wait up to 60 days for commercial customers to pay their invoices can be one of the biggest challenges that owners of small to mid size companies have to face. Waiting to get paid is not usually an issue for well-established companies that have a significant cash cushion in the bank. However, it can seriously affect smaller companies or companies that are going through a significant growth phase.

Most owners react to this cash flow problem by going to the bank, hoping to obtain a loan or a line of credit. However, banks have strict lending guidelines and seldom lend money to businesses that cannot demonstrate three years of profitable operations and cannot provide audited financial statements. Furthermore, most bank financing products tend to have arbitrary limits, which are based on your existing financial capacity, rather than your projected growth.

What growing businesses need is a form of financing that is tied to sales, allowing you to get more working capital, as your company grows. Furthermore, the solution should work for small and mid size businesses that may not have established credit histories, but that have great paying customers. Is there such a solution?

If you are in a situation where your business is growing and selling products or services to great credit worthy customers, you should consider factoring your invoices as a possible solution. Accounts receivable factoring allows you to convert your slow paying receivables into cash, by financing them through an accounts receivable factoring company. Accounts receivable factoring is a flexible line of financing that is directly tied to your sales. Basically, the more you sell to good customers the more financing you can obtain.

The process is fairly simple. Once an accounts receivable factoring agreement has been established, you send copies of your invoices to the factoring company, who in turn advances you a significant portion of their value. A small percentage is usually not advanced and kept as a reserve to cover disputes/etc. You obtain immediate funding to pay for company expenses and grow the business, while the factoring company waits to be paid by your customers. Once they get paid, they will rebate the funds that were kept in reserve and charge a small fee for the service.

Accounts receivable factoring is an ideal product for companies that are growing quickly and cannot afford to wait 30 to 60 days to receive payment from their customers. It provides you with the necessary financing to operate and grow your business, and as opposed to bank products; it?s easy to qualify for this service.

Invoice Factoring Group - http://factoring.qlfs.com - is a factoring company that can provide you with a free accounts receivable factoring or receivables factoring quote. Marco Terry, the president, can be reached at (866) 730 1922 or at http://factoring.qlfs.com/html/accounts_receivable_financing.html

Achieving Cash Flow Management Through Accounts Receivable Factoring

Accounts receivable factoring is another mode of receivables management and working capital funding to eventually increase the cash flow. Accounts receivable factoring involves buying and selling of accounts receivables in order to obtain immediate cash or working capital.

Accounts receivable factoring helps in acquiring cash for the product or the services rendered. It results in immediate cash inflow without creating any debt or transferring the business ownership. Accounts receivables are the most values assets for any company. It is one of the mode for increasing sales and expanding business. The payment is done of the 80% of the invoice value. The 20% of the value is kept as reserved and is paid after deducting the fee once the amount on the invoice is due.

This practice if accounts receivable factoring is most suitable for small and medium business owners. Due to accounts receivable factoring small and medium business owners are able to generate cash and avoid the debt trap. It also helps in representing string financial status and avoids interest on any loans if otherwise taken.

Accounts receivable factoring also results in increased working capital as receivables are conditional on customer's creditworthiness and not the business owners. It helps to avoid loan repayment, transferring business equity, engaging the assets, and also avoid yearly loan review process. For a small business owner accounts receivable factoring represents gaining working capital without overtaking any debt or loan. It is also a mode to increase sales without any repayment tensions for any loans etc. Thus business is able to meet demands and the circle keeps on auto-rotating as accounts receivable factoring increases sales and increased sales asks for more money to complete more orders.

Accounts receivable factoring also provides relief from non-paying clients or slow paying clients. It generates more sales due to increased orders. It also offers flexible funding program to help heighten the sales graph and take vendor discounts due to availability of cash.

This practice of accounts receivable factoring generates cash to fund the payrolls and taxes due. The funds thus generated also help to increase the inventory or buy new equipments, tools, etc to flourish the business.

The availability of cash helps small business owners to negotiate for discounts from their vendors and suppliers. It also helps to reduce book keeping, depositing checks, monitoring collection process, and preparing reports for collections. Brokers or agencies also provide their services for accounts receivable factoring. They help the business owners to manage their collections, payments, generating more cash and managing their cash inflow process.

Henry Byers, Business Factoring advisor - focusing on Factoring Services and Accounts Receivable Factoring

Financing your Business with Accounts Receivable Factoring

Having to wait up to 60 days for commercial customers to pay their invoices can be one of the biggest challenges that owners of small to mid size companies have to face. Waiting to get paid is not usually an issue for well-established companies that have a significant cash cushion in the bank. However, it can seriously affect smaller companies or companies that are going through a significant growth phase.

Most owners react to this cash flow problem by going to the bank, hoping to obtain a loan or a line of credit. However, banks have strict lending guidelines and seldom lend money to businesses that cannot demonstrate three years of profitable operations and cannot provide audited financial statements. Furthermore, most bank financing products tend to have arbitrary limits, which are based on your existing financial capacity, rather than your projected growth.

What growing businesses need is a form of financing that is tied to sales, allowing you to get more working capital, as your company grows. Furthermore, the solution should work for small and mid size businesses that may not have established credit histories, but that have great paying customers. Is there such a solution?

If you are in a situation where your business is growing and selling products or services to great credit worthy customers, you should consider factoring your invoices as a possible solution. Accounts receivable factoring allows you to convert your slow paying receivables into cash, by financing them through an accounts receivable factoring company. Accounts receivable factoring is a flexible line of financing that is directly tied to your sales. Basically, the more you sell to good customers the more financing you can obtain.

The process is fairly simple. Once an accounts receivable factoring agreement has been established, you send copies of your invoices to the factoring company, who in turn advances you a significant portion of their value. A small percentage is usually not advanced and kept as a reserve to cover disputes/etc. You obtain immediate funding to pay for company expenses and grow the business, while the factoring company waits to be paid by your customers. Once they get paid, they will rebate the funds that were kept in reserve and charge a small fee for the service.

Accounts receivable factoring is an ideal product for companies that are growing quickly and cannot afford to wait 30 to 60 days to receive payment from their customers. It provides you with the necessary financing to operate and grow your business, and as opposed to bank products; it's easy to qualify for this service.

Medical Factoring Financing - A Tool for Medical Supply Companies

Medical supply companies in general are very profitable enterprises. However, most medical supply companies operate on a very tight cash flow. Unfortunately, the challenging billing procedures and slow payment cycles of insurance companies, HMOs and Medicare/Medicaid create a situation where many companies wait 30 to 60 days before getting paid.

Cash flow can get even tighter if the company's sales grow, or if the owners decide to open new locations. When this happens, most company owners try to obtain bank financing through a loan or line of credit. However, qualifying for bank financing is incredibly challenging as they will only lend money to a business that shows profits for three straight years and can provide audited financials.

There is a financing alternative in the healthcare industry that has been used with success with medical supply companies. This solution provides you with quick financing based exclusively on your sales. Furthermore, since financing is tied to sales, the line of financing grows as your sales grow. The solution is to factor your medical insurance claims using medical receivables factoring.

Medical factoring provides you with immediate financing based on your slow paying insurance and Medicare/Medicaid claims. Rather than waiting 30 to 60 days to get paid, with medical factoring you can get paid in a few days. This frees up significant cash, allowing you to finance operations, and more importantly, to buy supplies and fuel new sales.

As opposed to bank financing, where the bank lends you money, the factoring company buys your invoices and pays you immediately for them. The process is fairly straightforward. But more importantly, this also means that you are free from the traditional bank lending requirements. Medical receivables factoring is easier to qualify for, and often, the owners' personal credit is not a consideration.

Factoring your medical receivables can be an ideal solution for you medical supply companiy if your main challenge is that you cannot afford to wait up to 60 days to get paid by insurance companies. If that is the case, medical factoring should provide you with the working capital you need to operate and grow your business.

Copyright (c) 2006 - Commercial Capital LLC. Article may only be reprinted if it is not modified and all links are kept live.

We can provide you with a free medical factoring, medical receivables factoring or invoice factoring quote for your healthcare company. Marco Terry, the president, can be reached at 1 866 730 1922.

Learn How To Finance Your Healthcare Business With Medical Factoring

There are few bigger pains for healthcare industry professionals than having to wait 30, 60 or even 120 days to collect payments from insurance companies, HMOs and Medicare/Medicaid. The healthcare industry is riddled with complex billing, coding and processing rules that create very long payment cycles. This can be very difficult for medical offices, testing and diagnostic centers, medical supply companies, or any healthcare related business, for that matter. There are always many ongoing expenses that can?t wait. There is rent that needs to be paid, offices expenses that need to be covered, and payroll that must be met.

This situation creates a problem for most healthcare businesses. On paper, the business may look very profitable and seem to be doing well. But in reality, most of the money is tied up in slow paying invoices (also known as accounts receivable) with little cash to show for it in the bank.

When faced with tight cash flow, most healthcare professionals turn to their bankers. Medical doctors can usually qualify for signature loans or lines of credit. Other business professionals are not so lucky. In reality, a loan or line of credit may help you in the short term, but will not solve the main problem. Why? Well, loans are good for buying equipment or large capital expenditures, but not for covering recurring and ongoing expenses. A line of credit is a better solution, but they usually have fixed limits. What happens if the business grows past the limits of the line of credit? Many healthcare professionals usually find out, the hard way, that the bankers that were quite happy to extend the first loan or line of credit will not be so helpful at increasing it. Unfortunately, bankers absolutely hate it when businesses came back to the well for more money.

If you look at the problem at hand, you will soon realize that the perfect solution should have the following characteristics. First, it should be able to accelerate your insurance payments so that you can get them quickly rather than slowly. Second, the solution should be able to grow with your business. So, if your business grows its billings, the solution should be able to adapt the financing it delivers, seamlessly. Third, the solution should allow you to finance significant growth. Maybe three to five times your current revenues ? or more.

There is a solution that meets these criteria and is available to the healthcare industry. The solution is to factor your medical receivables using a financing tool called medical factoring. Medical factoring allows you to accelerate your payments from insurance companies, HMO?s or Medicare/Medicaid. It enables you to receive a substantial amount of your net collectables within days of billing, streamlining your cash flow dramatically.

Medical factoring, a specialty form of general factoring, allows you to sell your claims and receivables to a factoring financing company. The factoring company buys them ? at a small discount ? and pays you with immediate funds. The factoring company waits to be paid while you get to use the funds to meet business expenses. As opposed to traditional banking financial products, medical factoring has no arbitrary limits. You can factor or sell as much revenue as you can generate, making it the ideal financing tool for growth.

However, factoring is not the best solution for every situation. It works best in instances where your main challenge is that you cannot afford to wait to get paid in 60 to 120 days. It helps you meet ongoing and recurring expenses such as rent, payroll and lease payments. Medical factoring is an ideal solution for medical offices, rehabilitation centers, medical testing and diagnostic centers, medical supply companies and small to mid sized hospitals.

Invoice factoring Group can provide you with a medical factoring and medical receivables factoring quote for free at http://factoring.qlfs.com/html/medical_offices.html . Marco Terry, the president, can be reached at (866) 730 1922

Can Medical Factoring Help Boost You Healthcare Business Finances?

There are few bigger pains for healthcare industry professionals than having to wait 30, 60 or even 120 days to collect payments from insurance companies, HMOs and Medicare/Medicaid. The healthcare industry is riddled with complex billing, coding and processing rules that create very long payment cycles. This can be very difficult for medical offices, testing and diagnostic centers, medical supply companies, or any healthcare related business, for that matter. There are always many ongoing expenses that can't wait. There is rent that needs to be paid, offices expenses that need to be covered, and payroll that must be met.

This situation creates a problem for most healthcare businesses. On paper, the business may look very profitable and seem to be doing well. But in reality, most of the money is tied up in slow paying invoices (also known as accounts receivable) with little cash to show for it in the bank.

When faced with tight cash flow, most healthcare professionals turn to their bankers. Medical doctors can usually qualify for signature loans or lines of credit. Other business professionals are not so lucky. In reality, a loan or line of credit may help you in the short term, but will not solve the main problem. Why? Well, loans are good for buying equipment or large capital expenditures, but not for covering recurring and ongoing expenses. A line of credit is a better solution, but they usually have fixed limits. What happens if the business grows past the limits of the line of credit? Many healthcare professionals usually find out, the hard way, that the bankers that were quite happy to extend the first loan or line of credit will not be so helpful at increasing it. Unfortunately, bankers absolutely hate it when businesses came back to the well for more money.

If you look at the problem at hand, you will soon realize that the perfect solution should have the following characteristics. First, it should be able to accelerate your insurance payments so that you can get them quickly rather than slowly. Second, the solution should be able to grow with your business. So, if your business grows its billings, the solution should be able to adapt the financing it delivers, seamlessly. Third, the solution should allow you to finance significant growth. Maybe three to five times your current revenues - or more.

There is a solution that meets these criteria and is available to the healthcare industry. The solution is to factor your medical receivables using a financing tool called medical factoring. Medical factoring allows you to accelerate your payments from insurance companies, HMO's or Medicare/Medicaid. It enables you to receive a substantial amount of your net collectables within days of billing, streamlining your cash flow dramatically.

Medical factoring, a specialty form of general factoring, allows you to sell your claims and receivables to a factoring financing company. The factoring company buys them - at a small discount - and pays you with immediate funds. The factoring company waits to be paid while you get to use the funds to meet business expenses. As opposed to traditional banking financial products, medical factoring has no arbitrary limits. You can factor or sell as much revenue as you can generate, making it the ideal financing tool for growth.

However, factoring is not the best solution for every situation. It works best in instances where your main challenge is that you cannot afford to wait to get paid in 60 to 120 days. It helps you meet ongoing and recurring expenses such as rent, payroll and lease payments. Medical factoring is an ideal solution for medical offices, rehabilitation centers, medical testing and diagnostic centers, medical supply companies and small to mid sized hospitals.

Invoice Factoring Group

Invoice Factoring Group can provide you with a medical factoring and medical receivables factoring quote for free. Marco Terry, the president, can be reached at (866) 730 1922

Can Medical Factoring Help Finance Your Fast Growing Office?

Regardless of what industry pundits say, opening a medical practice can be both very rewarding and very lucrative. Of course, as with any business, medical offices have their own specific financial challenges. One of the biggest challenges for medical practices of all sizes is adjusting to the long payment cycles of private insurance providers and Medicare/Medicaid. It is not uncommon for bills to insurance companies to take up to 120 days to pay. This slow payment cycle wreaks havoc in the office?s cash flow, forcing the medical office to carry the costs of doing business ? paying rent, equipment leases and office staff ? while waiting to get paid. This can be prohibitively expensive and prevent the office from growing and hiring additional staff. At its worst, it can threaten the very existence of the medical practice.

However, there is a light at the end of the tunnel. There is a financing tool that lets you capitalize on your slow paying insurance companies and turn their slow payments into immediate payments. The solution is to factor your medical receivables.

How does medical receivables factoring work?

Medical receivables factoring (or medical factoring for short) is a financing tool that allows you to turn slow paying invoices into actual cash, by selling them to a medical factoring company. The medical factoring company pays you for them and waits to be paid by the insurance companies. It eliminates the slow payment cycle, reducing the payment time from 90 days to two days. This provides the medical office with the necessary funds to meet expenses, such as paying rent and staff. It also frees up capital to grow the business into new areas.

The medical factoring process is fairly simple. Once a factoring arrangement is established, your office sends its weekly receivables to the factoring company for immediate financing. The factoring company will calculate the actual amount paid by insurance companies (called the net collectibles) and advance you up to 80% of that amount. The remaining 20% is called the reserve, and is used to settle billing discrepancies. Once the insurance company pays the medical bill, the remaining 20% is rebated, less the financing fee. The financing fee varies based on how long the invoices were financed.

Although qualifying for factoring is relatively simple, most financing companies will only work with medical offices that have net collectibles of at least $50,000. Terms usually get better as the practice grows. Medical practices, testing centers and medical supply companies that have over $200,000 a month in net collectibles are in the best position to get the best terms. This is because insurance payment processing can be very complex and there are a number of efficiencies that can be realized with high volumes.

Advantages of medical office factoring

Medical office factoring has some advantages over other financial products. The most important is that the financing is recurring and happens every time you invoice an insurance company. This makes it a cash on demand product. As opposed to loans and lines of credit, the factoring line has flexible limits. As a matter of fact, the limits are based on your ability to invoice, making it an ideal growth tool. Lastly, doctor office factoring is easy to qualify for and the personal credit of the practice owners is usually not involved in the financing decision.

Invoice Factoring Group can provide you with a medical factoring or medical receivables factoring quote for free at http://factoring.qlfs.com/html/medical_offices.html Marco Terry, the president, can be reached at 1-866-730-1922. Copyright? 2006 ? All rights reserved. Article may be reprinted provided it isn't modified

How to use freight bill factoring to finance your trucking company

There are few businesses that are as cash flow intensive as a trucking company. The list of ongoing expenses can be endless and can easily overwhelm small and medium size trucking companies. There are fuel expenses, truck repairs, rentals and salaries. Although most trucking companies are very profitable, few can afford to wait the usual 30 to 60 days it takes to get paid for their freight bills.

Unless the trucking company has a significant cash cushion in the bank, waiting 30 to 60 days to get paid can cause serious problems. It can jeopardize existing operations and furthermore, it can prevent you from growing your business. The only way to get out of the cash flow rut is to find a way to capitalize on your slow paying invoices. The best tool to do this for a trucking company is called freight bill factoring.

Freight bill factoring enables the trucking company to get paid for their freight bills within a day of invoicing, eliminating the usual 30 to 60 day wait. With a factoring agreement in place, you can stabilize your company's cash flow and eliminate the stress of not knowing when you'll be paid. Since freight bill factoring eliminates the worries of waiting for your payment, you will be free to focus on what you do best: running your business.

Who qualifies for freight bill factoring?

Most small and mid size trucking and transportation companies should qualify for factoring. There are two main requirements to qualify. First, your company must do business with reputable clients or freight brokers. Second, your company must be free of tax problems. If you meet these two criteria, more often than not you will qualify. Most factoring companies are comfortable working with new businesses, so you should be able to qualify even if your company is a start up. Best of all, you can get a financing agreement in place within a few days.

What services does a factoring company provide?

The main benefit of working with a freight bill factor is that this will provide you with advanced funds on your freight bills. That means you can get paid very quickly after invoicing. However, most factors will also provide you with collections and credit protection as part of their services. This enables you to focus your energies and your staff on growing your company rather than on expensive and time consuming back office work.

Factoring for growth

Although many truck operators initially obtain factoring financing to avert the problems of dealing with slow payers, eventually most owners realize that factoring can help them grow their business. It eliminates their biggest worry by ensuring that invoices get paid immediately, freeing up cash and enabling the owner to grow the business.

About Invoice Factoring Group

Invoice Factoring Group (http://factoring.qlfs.com) can provide you with a free trucking company / freight bill factoring quote. Marco Terry, its president, can be reached at (866) 730 1922.

Invoice Factoring As A Short-Term Cash Flow Solution

Invoice factoring refers to the practice where smaller companies sell invoices in order to receive money today. IN this case they do not have to wait for a credit period of 30, 60, or 90 days. Thus by selling invoices smaller companies do not create debt. This practice of invoice factoring is basically used as a finance management tool.

This practice of invoice factoring is usually adopted to avoid any loans or giving any collateral against availing any loan. The fee for invoice factoring is paid in terms of discount. This discount can ranger anywhere between 2.5% to 7%. As a result of invoice factoring the smaller companies avoid exhibiting any loans on their balance sheets plus they also do not have to pay any interest for the money taken. This results in better profit figures.

Various agencies also help small companies in invoice factoring. These agencies set up the company with the right factor for a particular factoring situation. If someone has an invoice or any receivable to be factored then these agencies come out to help in the same.

These agencies help the manufacturers, distributors, importers, exporters, wholesalers, contractors, suppliers etc equivocally. They also help truckers in construction invoice factoring. These agencies help to locate best factor for a particular situation within the area or can also help to choose from nationwide factoring companies to avail the best rates. They usually customized solution as per the clients need. To avail the services of such companies firstly a form needs to be filled out stating the type of receivables and other details required for invoice factoring. Then these companies approach the probable paying parties that avail invoice factoring. Some of these agencies assume the risk in the deal for non-recourse factoring where the client is not required to pay back.

There are different types of companies with different types of rates for factoring. Any invoices or receivables to the amount of $100,000 can be factored immediately. The average rate payable for discount in such cases is 2-5%.

Some agencies specialize for a certain category of invoice factoring. For example, some agencies indulge only in invoice factoring for medical industry. Some agencies, which cater to small and medium businesses for invoice factoring, create invoices online and receive immediate funding. They usually give a 24 hours turnaround. Other types of agencies also give funds to small businesses for their day to day operations against collateral of their invoice or purchase order. These kinds of agencies also buy mortgage notes, structured settlement annuity or medical receivables.

Henry Byers, Receivable Factoring advisor - focusing on Invoice Discounting and Invoice Factoring

Why Try Factoring?

When you engage in factoring or selling your accounts receivable, you're accepting less money for an asset than you might expect to get for it. But there are great reasons for factoring and here are 10 of them:

1. The ready cash you'll get by factoring will help your company to grow. If you have $2000 ready cash in the bank, but you've invoiced for $100,000 down the line this will lead to $75,000. Think about it: the ability to hire more necessary staff, buy needed equipment, and have stock on hand could make a real difference to your business.

2. Ready cash can help you pay your suppliers sooner, helping you negotiate discounts and have a larger credit line than you had before.

3. Factoring your current invoices gives you the capital to take on large, deadline-oriented contracts and orders that you'd otherwise have to pass up because of slow cash flow.

4. Those large accounts are worth money. Having cash on hand now allows you to offer longer payment terms to the new large accounts.

5. Out of marketing comes business. With ready cash you can get from factoring, you can buy billboards, newspaper and radio ads, and even have direct mail campaigns for those timely marketing campaigns.

6. If you've invoiced too much and now are finding yourself in a cash crunch, factoring will help you to meet your current expenses right away, reducing the chance of not being able to pay your bills. Nothing is worse for your company than not meeting payroll; you lose your best employees, and the ones who stay are probably going to be seeking other employment.

7. You can improve your balance sheet with working capital without incurring debt.

8. Pay off limited lines of credit, or lines of credit that are costing you too much in interest and fees.

9. Factoring out slow debts allows you to skip the unpleasantness of making payment collection calls; instead, the factoring company does this for you.

10. If you factor out part of your accounts receivable, the factoring company will give you a free analysis and comparison of what payment terms and credit amounts your customers really qualify for. This is invaluable information for conducting business in the future.

In addition to these ten great reasons to try factoring your accounts, there are a few reasons never to factor your accounts. If you're concerned about late and slow payments without a good reason such as; you've given a thirty-day due date to someone and they take forty days to pay, then factoring is not a good idea. Instead, you should change your business practices to give a shorter due date. If you think your customer won't pay, factoring their invoice out is dishonest, and will win you no points with a factoring company. Do you really want to ensure you have a bad reputation with people who trust you with a large amount of their capital?

If you're in a dispute with a customer and you decide factoring out your invoice is a way out, you're wrong. The customer could simply refuse to pay the factoring company and then sue you, or worse, tell everyone else what a horrible company you run. Face your disputes head on. If you are dissatisfied with the customer, don't do business with them again.

Factoring to sustain a non-profitable business without some hope of profitability in the future is a sure way to drive your self into bankruptcy. Instead, you should let your business die a dignified death. Factoring so that you can remove cash from your business is a bad idea, akin to taking out a dozen credit cards so you'll have money now. When you engage in factoring, you're essentially agreeing to a profit loss; you should only do this if you stand to make more money in the long run.Henry Byers, Factoring advisor - focusing on Receivable Factoring and Invoice Discounting

How factoring your invoices can help your business grow

Every day many business owners hit a wall. That wall prevents them from growing their business, or at least, severely limits the speed at which they can grow their companies. Sometimes, and especially for small and mid size businesses, the wall appears to be insurmountable. That wall is lack of working capital. Let's take a look at the most common source of working capital problems: extending payment terms to customers.

There are few things that small business owners hate to hear more than a customer utter the words, "We'll be happy to do business with you. However we pay net 45 days". As is well known, commercial clients like to pay their invoices in 30 to 45 days. As a business owner, you are expected to go through the trouble and expense of delivering your product or service on time... only to then wait 30 to 60 days to get paid.

It does not take a long time before the business has a lot of money tied up in their unpaid invoices - or accounts receivable. At this point the business may have more money in unpaid invoices than actual cash in the bank. When they reach the breaking point, they hit the wall. They can no longer supply new products until old invoices pay. Sometimes it's even worse. The business may stop operating until old invoices pay. Payroll is missed. Key suppliers are not paid. Unless this is fixed quickly, the business will certainly face major problems. If you hit the wall, there are two options. Either you step on the brake and stop growing your business, which means your competition gets the contracts, or you blast through the wall using some form of financing. Invoice factoring can help you do just that.

Your unpaid invoices are an asset - really!

Companies that hit the wall have a great asset that can be turned into immediate funds. They just don't know it. This asset is their unpaid invoices from credit worthy clients. Let me give you an example. Let's say that you have a $10,000 invoice from General Electric payable in 45 days. Do you think GE will pay? Isn't that invoice almost as good as money? Well, of course. GE is arguably one of the best and most financially stable companies on the planet. Most people would certainly consider that invoice to be "almost cash". Unfortunately, banks will seldom provide you any financing that relies on that "almost cash". However, there is a solution that relies solely on the power of your unpaid invoices. It is called factoring.

Invoice factoring. Financing your business without debt

Invoice factoring allows you to turn your slow paying invoices from good customers into immediate cash. It's a very simple transaction in which you trade an invoice - "almost cash" - for actual cash. Basically, the factoring company provides financing solely on the power of your soon to be paid invoices.

Provided that you have good customers, you can repeat this process for every invoice you have, almost indefinitely. If you sell products to good credit worthy customers, a factoring company will gladly buy your invoices. There are no limits, except how much you can sell.

One important thing to know about factoring is that it doesn't generate debt. The factor does not loan you money for your invoices. It buys them outright from you at a small discount. Since factoring is not a loan, qualifying for it is easy and your financial statements look cleaner. You just need a well-run business and great customers.

Who is a good candidate for factoring?

Factoring is a great resource for companies that have great paying - albeit slow paying - customers. To work well, the company should have profit margins of at least 15%. However, higher margins of 25% - 50% are more desirable.

Factoring works well for companies that have hit the wall and are turning away new business opportunities because of lack of money. In these instances, factoring will almost always allow you to grow your company immediately and will more than pay for itself.

Factoring works well for almost any industry. Some very successful staffing companies, trucking companies, IT consultancies, construction firms, manufacturers and service providers have used factoring to dramatically grow their businesses.

A sample factoring transaction

Let's take a look at a sample invoice factoring transaction. This will help you better understand how this financial tool works. Let's say that you have a company, called Super Services Inc. Super Services sells products to two clients. The clients are Company A and Company B. The factoring would look as follows:

1. Super Services delivers its products to Company A and Company B 2. Super Services sends Company A and Company B an invoice for its products. At the same time, it sends copies of the invoices to factor 3. The factoring company receives the invoices and advances funds to Super Services. Super Services can use the funds to grow the business 4. The factoring company waits to get paid. Once it gets paid, the transaction is settled

As you can see, invoice factoring is a fairly straightforward tool that allows business owners to capitalize on their most precious asset - their invoices.

Invoice Factoring Group

Invoice Factoring Group and its small business invoice factoring subsidiary can provide you with factoring quotes at no cost to you. Marco Terry, its president, can be reached at 866-730-1922.

What is Factoring and Invoice Discounting?

Factoring and invoice discounting (known as debtor finance) can dramatically improve your cash flow by releasing money as soon as you have completed an order and raised an invoice rather than having to wait for your customer to pay. This makes them ideal for funding growth. Because it's linked to sales, factoring or invoice discounting is ideal if your business does not have the financial track record or security available to negotiate sufficient overdraft facilities.

A key advantage is flexibility. The amount you can borrow grows in line with sales and it is often possible for you to repay bank facilities and release previously pledged security.

Typically, when factoring is set up you can borrow about 80% of the value of your approved invoices less than 90-120 days old. Thereafter, cash will be made available against invoices on a daily basis with the remaining 20%, less charges, once the value of the invoice has been collected. Once the system is established, the level of advance you receive against invoices depends on a number of issues, but can rise as high as 100%.

Once in place, there is no limit to the amount you can borrow as the finance is linked directly to sales. This is in sharp contrast to bank overdrafts, which require regular re-negotiation and arrangement fees.

The cost of such a facility is normally up to 3% over base rate for the money borrowed together with a service charge linked to gross turnover of at least 0.5% depending upon the level of annual sales, the number invoices raised and how many live accounts are on the sales ledger. Small addition charges are often made for extra services such as credit insurance.

John Courtney AIMC, MABS, MInstDis, is the managing director of Strategy Consulting Limited (http://www.strategyconsultinglimited.co.uk). Having trained at The Academy of Business Strategy, and is an associate of the Institute of Management Consultancy and a member of the Institute of Directors, he is also a visiting lecturer on the MBA course at Cranfield University School of Management and a Judge in The National Business Awards

What Is Invoice Factoring And Invoice Discounting

The Romans were the first civilization to sell promissory notes at a discount, beginning the industry of factoring. America was built largely on the possibilities of factoring, when colonial businesses were factored by Europeans willing to invest cash in exchange for the promise of large returns, and government bonds also use the same principles applied by businesses when they engage in invoice factoring.

Invoice factoring is, at its simplest, the sale of the right to collect cash owed on your outstanding invoices. Most businesses engage in invoice factoring when they need cash up front quickly, or when they have customers that are slow to pay and don't have the resources to build an accounts collections department. Though some companies are large and established enough to get accounts receivable financing through a regular bank, it can be handy to have access to invoice factoring companies as well.

Most businesses use invoice factoring to get fast cash. In the intense and fast paced business environment of today, ready cash can be invaluable. With the sale of your invoice futures, you can get the cash today you need to capture customers that will move your business forward.

Invoice factoring is not a loan; rather, it's an outright sale of an asset. Another way of looking at it is as a cash advance: you give up a certain portion of the money you expect to receive in the future in exchange for ready cash today. While some businesses purchase invoices outright, others give you a down payment toward the invoice, paying you the balance less their fee when they receive payment from the customer. One of the best things about invoice factoring is that your credit has no bearing on whether you are approved; instead, your customer's credit qualifies the invoice for factoring.

Many different industries take advantage of invoice factoring, including:

* Transportation
* Manufacturers
* Distributors
* Wholesalers
* Staffing and consulting firms
* Telecommunications companies
* Service providers

Because ready cash is so important in their business, industries that are heavily vested in human services and need to be able to meet payroll are among the best able to leverage invoice factoring. However, any business that generates at least ten thousand dollars in accounts receivable should be able to use invoice factoring, provided they've acquired creditworthy customers.

Other situations that might make invoice factoring a wise choice for you include:

* A young company with creditworthy customers, but not sufficient credit history for your own business to be considered creditworthy by banks
* A company with the necessity of taking advantage of new, time-limited sales and profit opportunities, but inadequate cash flow currently to do so
* Companies with income, credit, or tax problems
* Companies that have filed for bankruptcy, but that stand to turn a profit
* Companies that are growing too rapidly for ready capital to keep up with business needs
* Companies poised to grow very soon but do not want to incur debt
* Companies that are growing rapidly, but do not have good enough credit to take out bank loans.
* Start-up companies with no capital base currently
* Companies with seasonal sales patterns or uneven sales patternsHenry Byers, Invoice Factoring advisor - focusing on Accounts Receivable Factoring and Factoring Financial Services

Invoice Factoring - How To Finance Business Growth Without Debts

One of the biggest challenges that the owners of small and mid size businesses have is waiting 30 to 60 days to get paid on their invoices. Although large businesses can usually afford to wait, smaller businesses usually can?t. As a matter of fact, waiting to get paid on their invoices, usually affects the owners ability to meet payroll or pay the company?s bills. This problem can even be more frustrating if the business has a number of orders that it cannot fulfill because its cash is tied in unpaid invoices.

How can invoice factoring help you?

Invoice factoring, also known as accounts receivable factoring, is a financial tool that allows small business owners to capitalize on the power of their slow paying invoices. It allows you to turn your invoices into immediate cash, enabling you to fund your business operations. Although it is not a well-known fact, invoices from strong credit worthy commercial clients are excellent collateral, especially for factors. Although most banks won?t take it ? invoice factoring companies are more than willing to provide you with financing based on them. This makes factoring an ideal financing vehicle for small and mid size companies, as well as knowledge-based businesses and employee intensive businesses.

How does invoice factoring work?

As opposed to most banks than lend you money against collateral, invoice factoring companies buy your invoices outright. The factoring company buys your invoices and provides you with funds immediately, while they wait to get paid by your customers. Let me describe the transaction with an example:

1. Let?s say that you sell services to Company A and Company B. As soon as you provide them with services, you issue invoices.
2. At the same time, you send copies of the invoices to the factoring company, who buys them and provides you with an advance payment for them.
3. The factoring company waits to get paid by your customers. Once paid, any remaining funds, are sent back to your company.

The invoice factoring process can be repeated for every invoice that you issue, providing you with a flexible line of financing that grows with your business.

How much will an invoice factor advance my business?

The factoring transaction is commonly done as a two-installment sale. The first installment is called the advance and is paid to you as soon as you submit the invoices. Advances can range anywhere from 60% on the low end up to 90% of the gross value of the invoices. The average advance is about 75% (for the industry) The remaining installment, called the rebate, is remitted to you once the invoices are paid.

The cost of invoice factoring

The actual cost of an invoice factoring tramsaction is determined by three criteria. First, the credit worthiness of your customers. Second, the length of time your invoices take to get paid. Third, the monthly factored volume. Your cost, actually called a discount in the industry, can be as low as 1.5% or as high as 12%, per transaction.

How can I determine if invoice factoring will help me?

Generally speaking, invoice factoring will help you if you have a business that has reasonable profit margins or is growing quickly. Mid size companies with 20% or more of profit margins or large companies with 15% profit margins can usually do well with accounts receivable factoring.

 Invoice Factoring Group - http://factoring.qlfs.com - can provide you with factoring quotes at no cost to you. Marco Terry, its president, can be reached at (786) 206 4722

"The Pros and Cons of Factoring" - Trade Receivables

Factoring is a quick and easy way to replenish your business with urgently needed cash in quickest possible time. However, this financing option is not all hassle free and has its disadvantages too.

The pros and cons of factoring

Advantages:
- It is among the quickest way to get advance cash. ( http://www.hjventures.com/factoring/accounts-receivables.html )

- Overhead charges get automatically reduced with the cut in invoice processing activities.
- The business owner becomes free of various other obligations connected with the invoice processing like depositing checks and entering payments.
- Getting cash with factoring helps in eliminating the risks of bad debts.
- By undertaking the task of debt collection it helps the company in concentrating over more value added activities.
- Without acting as hindrance to cash flow it gives an opportunity to offer credit terms to customers.
- Factoring brings no extra liability in balance sheet and hence does not result in creating hassles while obtaining other types of financing.
- Early payment discount is another benefit of factoring. Payment of bills before the scheduled time brings in many benefits in the form of discounts.
- It is an easy way to have an access to unlimited capital as with an increase in sale more money becomes immediately available to business owners.
( http://www.hjventures.com/factoring/factoring.html )

Some other benefits include building credit, quick and easy process, concentration on marketing and securing new accounts and no long-term obligation.

Disadvantages:

- The biggest disadvantage is it makes the process complicated as it acts as an extra link in the process.
- It is useful for companies with disputes and queries.
- The ambit for borrowing gets narrowed, as account receivables will not be available for security.
- Factors may want to get your customers examined and may have influence over your ways of doing business.
- In case the customers do not repay the money, you have to pay their amount entwined in factoring.

- It is costly than other sources of finance though it is competitively priced.
- Few customers don't want to deal with a third party and are not interested in factoring.

Learn more about factoring / business finance: http://www.hjventures.com/factoring/factoring-glossary.html

Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing Business Plans. For more information: http://www.hjventures.com/factoring/factoring-glossary.html

Business Finance Expert Series: "The History of Factoring"

In conventional times factoring ( http://www.hjventures.com/factoring/factoring-glossary.html ) is one of the most sought- after method to improve the cash flow ( http://www.hjventures.com/factoring/cash-flow.html ) of a company. When a firm decides to its account receivables to a financial institution then it is termed as factoring. The factor then bears the credit risk for the accounts and finally receives the sum from the customers. It is among one of the most effective and efficient form of financing used these days. Factoring has been in existence since the beginning of trade and commerce. It can be traced back to the period of a Mesopotamian king Hammurabi. However, an extensive use of the concept began in American colonies before the revolution started. During those times raw materials like timber, fur and cotton were shipped from the colonies and before they reached the destination merchant bankers in London and other parts of Europe used to advance funds for the raw material. The practice was very beneficial to the colonists, as they didn't have to wait for the money to begin their harvesting again. Basic work of factors of colonial times is similar to factors of conventional times. They have the same job of making advances against the account receivables ( http://www.hjventures.com/factoring/accounts-receivable-financing.html ) in order to help them in continuing with their job even before they are paid for their sale. With the Industrial Revolution the concept of factoring got narrowed down to credit. In the 60's and 70's with an escalation of interest rates there was a surge in private factors. The trend strengthened in 80's with further increase in interest rates and changes in the banking industry. With various expenses and inflexible rules involved with banking, factoring is a safe and easy method for financial expansion and growth. Working capital arranged through factoring is an easy means to cover purchasing, operating and other pay roll costs and provides the much-needed freedom from varied book keeping functions like credits and collections. All these attributes have made 'factoring' a buzzword in the financing market. Learn more about http://www.hjventures.com/factoring/factoring-glossary.html

Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing Business Plans for companies interested in raising capital from Venture Funds and Angel Investors. Howard's business plans have secured several million dollars in funding. For more information: http://www.hjventures.com/factoring/factoring-glossary.html