Credit Card Processing - Credit Card Factoring Solutions

Credit card processing is frequently one of the most problematic and overlooked issues for a business owner. An effective credit card factoring program can reduce many credit card processing problems by implementing appropriate cost-reduction strategies. Credit card factoring improvements can produce dual business benefits by both eliminating credit card processing problems and providing improved cash flow by enhanced management of business cash advance programs.

CREDIT CARD PROCESSING AND CREDIT CARD FACTORING SOLUTIONS: Reduce Credit Card Processing Costs Via the Credit Card Factoring and Business Cash Advance Process

As I noted in an earlier business loan article, for any business that accepts credit cards as a method of payment, a business cash advance (obtained through credit card factoring) is a critical working capital financing tool that is often overlooked. Even thriving businesses frequently need more working capital than they can borrow from a bank. However, what is typically even more overlooked by many business owners is the opportunity to reduce their credit card processing costs at the same time that they obtain a business cash advance via credit card factoring.

CREDIT CARD PROCESSING AND CREDIT CARD FACTORING SOLUTIONS: Key Problems to Avoid with Credit Card Factoring and Credit Card Processing

Credit card factoring is an important option to consider when a business is seeking short-term commercial loans, unsecured business loans and improved approaches to credit card processing services. Unfortunately there are a number of problems to be avoided with credit card processing and credit card factoring programs. As with any successful business financing strategy, there will typically be only a small number of commercial lenders who are effective at implementing the joint tasks of credit card processing and credit card factoring strategies properly.

Because of this, the prudent choice of an appropriate provider of credit card processing and credit card factoring is extremely important to any business owner that accepts credit cards. To help demonstrate which providers of credit card processing and credit card factoring to avoid, I have written an article which identifies ten key problems which should be avoided with credit card factoring and credit card processing.

CREDIT CARD PROCESSING AND CREDIT CARD FACTORING SOLUTIONS: How to Obtain The Best and Lowest-Cost Credit Card Processing Services

For business owners either unhappy with their current credit card processing services or simply wondering if cost improvements are viable, a credit card factoring program which eliminates all of the ten key problems noted above should be considered. One of the primary reasons for evaluating credit card processing and credit card factoring in this coordinated fashion is that the low-cost producers of the best business cash advance programs will almost certainly be using the best and lowest-cost producers of credit card processing services. In many cases, the best and lowest-cost providers of credit card processing are simply not available to the average business owner other than as part of a working capital management plan encompassing both credit card factoring and credit card processing.

CREDIT CARD PROCESSING AND CREDIT CARD FACTORING SOLUTIONS: Cost Reduction and Improved Cash Flow for Successful Working Capital Management

Business owners should not lose sight of the substantial total benefits which might accrue to their business by effectively combining credit card processing and credit card factoring services. As noted above, cost reduction and improved cash flow are primary goals of successful working capital management, and the proper coordination of credit card factoring and credit card processing should accomplish both of these difficult goals simultaneously.

Stephen Bush is the CEO of AEX Commercial Financing Group, LLC. Steve provides working capital loan and church financing assistance throughout the United States. Information about free online Business Financing Reports and a free online Commercial Real Estate Financing Course is available at select AEX Commercial Financing Group, LLC websites.

Copyright 2005-2007 AEX Commercial Financing Group, LLC. All Rights Reserved.

How Cable Installers Can Benefit From Factoring Receivables

The cable installation business can be very profitable ? if managed properly. Most cable installers operate as subcontractors for large telecommunications or cable companies, such as AT&T, Adelphia or Comcast. This can be a great business model that makes a tidy profit for the cable installer. These companies make great customers and provide constant work and reliable payments.

Although working for large companies can be a great source of revenue, business owners need to get used to the fact that they pay their invoices 30 to 60 days after the work is completed. That means that as an owner, you must cover all payroll and all other business expenses while waiting to be paid. This can be tough, especially for new or growing businesses.

When faced with a cash flow challenge, most installers go to their bank hoping to get some business financing. However, they soon learn that getting a business loan is very hard. As a matter of fact, few loans are ever granted to cable installers. Fortunately, business loans are not always the best solution to this problem. In fact, there is a solution that works better than a loan. It is called factoring.

Factoring receivables can provide you with a reliable and predictable cash flow. It provides you with a substantial advance on your invoices, ensuring that you have funds to pay employees and suppliers. Receivables factoring works as follows:

1. You perform the work and send an invoice to the Cable or Telecommunications company

2. You send a copy of the invoice to the factoring company. The company provides you with an immediate advance. The advance will be between 75% and 85%

3. Once your client pays the invoice, the factoring company will give you with a second advance (the remaining 15% to 25%), less a small service fee

The fee will vary based on how much you invoice per month and can range from 1.5% to 3% per month.

One of the most attractive features of factoring invoices is that it is easy to obtain. Most cable installers will qualify provided that they do business with good customers (such as large cable companies) and are free of problems. Factoring invoices is an ideal solution for both established and new companies and can help propel your business to the next level.

About Invoice Factoring Group / Commercial Capital LLC

Searching for factoring companies? We are a leading factoring company and can provide you with a competitive accounts receivable factoring quote. For more information call (866) 730 1922.

Factoring & Account Receivables

All too often, small businesses that are just starting out experience cash flow issues that make it difficult for them to meet their financial obligations. Creditors are less lenient with new businesses than they are with businesses that have been established for an extended period of time.

Entrepreneurs that are just embarking into the business emporium are dependent on their account receivables for their business to thrive, it?s crucial to the life of their business. Most creditors or vendors, offer very short payment terms to new businesses, others work strictly on a C.O.D. basis. When account receivables don?t get paid in a timely manner, these small businesses suffer cash flow issues that result in their inability to meet their own financial obligations.

New business owners have few options available to assist them in fulfilling obligations to their creditors, not to mention in house obligations such as payroll, rent, and utilities.

Factoring account receivables is not the most cost effective solution for businesses to resolve their account payable issues, but often times it is the only resource they have. Many small businesses choose factoring as a temporary solution to get them through the rough spots, until they can assess the capital necessary to qualify for financing.

Factoring is a form of financing that businesses utilize. A business can sell it?s unpaid invoices to a finance company to expedite cash flow. This is how it works.....

A business may turn over unpaid invoices to a finance company.

The finance company will purchase the invoices.

The finance company will advance the business monies, (usually in the form of a wire transfer) less their percentage and collateral.

The collateral is put into a restricted account until all invoices are satisfied.

When the invoices are satisfied, the finance company releases the collateral from the restricted account to the business.

If the invoices are not paid (generally Net 90), the business loses the collateral and is required to repay the finance company their original investment in addition to any finance fees incurred.

Although factoring is a risk, many entrepreneurs are willing to take such risks in an effort to sustain the business until their business becomes financially stable. Many businesses overcome these financial obstacles, unfortunately there are many that can not recover, as a result these businesses fail.

So why would a company choose to factor it?s receivables? Businesses can quickly turn their unpaid invoices into cash. All invoices are not necessarily submitted for factoring. A business may choose to turn over only a portion of their invoices to be factored, generally those they consider slow pay accounts. The down side is that the business usually receive only 80 percent of the face value on each invoice.

Account receivable factoring has become increasingly popular for businesses that experience difficulty in securing a loan in the traditional manner from a bank. This is a vital resource for small businesses in today?s economy. Many of the larger corporations are also utilizing factoring of their account receivables as a resource to generate quick cash.

Donna Vestre is the President/CEO of South Coast Revenue, a Recovery Consultants Firm based in Anaheim California. To get more information on Credit and Collections, or to submit an article for inclusion in the "Guest Speakers Lounge" please visit http://www.SouthCoastRevenue.com

How Factoring Receivables Can Help Your Business Grow

Do you have commercial or government clients? Working with commercial and government clients can be very profitable. However, these clients also tend to pay invoices in 30 to 60 days, which can drain your company?s working capital. Many times, these great but slow paying customers can drag your company?s performance down.

If your working capital is tied in slow paying customers, eventually you?ll have to start turning away new sales. Even worse, you may miss payroll or key supplier payments. Before long your company will be stuck in neutral or about to enter a death spiral. The solution, of course, is to obtain some working capital.

Going to the bank for business financing (e.g. a working capital business loan) is tricky and won?t work for most business owners. Banks usually require 3 years worth of financial statements, detailed business plans and will take months to make a decision. In the end, you may ? or may not ? get the capital you need. However, if your biggest challenge is that your customers take up to 60 days to pay their invoices, you should consider factoring your receivables.

Factoring receivables enables you get an advance on your slow paying invoices. This provides you with the necessary working capital to make new sales, meet payroll and pay rent. And as opposed to conventional bank financing, invoice factoring is easy to obtain and quick to set up.

Factoring financing is easy to use. It works like this: 1. You deliver your product/service to your customer

2. You submit the invoice to the factoring company for financing

3. The factoring company advances you up to 85% of the invoice as the first payment

4. Once your customer pays for the invoice, the remaining 15% is advanced, less a small service fee

Factoring services fees can range from 1.5% to 3% per month, depending on your business volume and other criteria.

There are a number of advantages to using factoring. For starters, it?s relatively easy to qualify for the service. The biggest requirements are that you work with reputable customers and run a good business. And it?s also easy to setup. Usually you can get financing in just a few days. All of these features make receivables factoring a great alternative for new and established companies.

About Commercial Capital LLC
Interested in factoring receivables? We can provide you with a competitive accounts receivable factoring and receivables factoring quote. For information call Marco Terry at (866) 730 1922.

How Factoring Companies Can Help Staffing Companies Grow

One of the biggest challenges for staffing company owners is meeting payroll. Employees must be paid every week ? without exception. However, paying employees can be very difficult if an agency does not have predictable or reliable cash flow. What is worse, waiting for a payment from a slow paying client can seriously jeopardize the agency?s ability to function.

This situation, unfortunately, is quite common in the staffing industry.

What is the solution? When owners or managers face slow cash flow their first instinct is to try and get business financing from their local bank. However, they soon learn that getting a business loan is very difficult. Most banks require that the owner have an extensive business history, spotless personal credit and substantial collateral. Unfortunately, small businesses seldom qualify for business loans.

Nevertheless, there is an alternative that can help you finance you staffing agency. It?s easier to obtain than a business loan, can be set up in days and is available to most business owners. And, it provides staffing agencies predictable cash flow.

The solution is called invoice factoring. Factoring provides you with an advance on your invoices from slow paying clients. That advance ? available soon after you invoice for your work ? can be used to cover payroll and other expenses. In effect, factoring receivables provides you with predictable cash flow enabling you to better operate your staffing company.

How does invoice factoring work? Well, it?s a simple solution. It works as follows:

1. You deliver a copy of the time sheet and invoice to the factoring company

2. The factoring company advances up to 90% of the invoice within 24 hours

3. Once the invoice by the customer the transaction is settled

Factoring fees can range from 1.5% to 4% per month and are based on your business volume and other criteria.

One of the most attractive features of factoring is that it is easy to obtain. Most staffing agencies will qualify provided that they do business with good customers and are free of problems. Factoring invoices is an ideal solution for both established and new companies and can help propel your business to the next level.

About Invoice Factoring Group / Commercial Capital LLC

Searching for factoring companies? We are a leading factoring company and can provide you with a competitive accounts receivable factoring quote. For more information call (866) 730 1922.