FACTORING: What's In It for You?

Factoring or Accounts Receivable Financing is a tool for providing working capital and cash flow to businesses of all sizes and in all industries. It is especially useful for startups and for small, minority, women-owned and / or disadvantaged companies. There are many reasons why Factoring should be considered. Below I have highlighted some of the benefits.

QUALIFYING: If you're a start up or already have significant debt, you can still qualify for this financing. Funding is based on the financial strength of your customers. SPEED: the initial application process is fast, usually within a week. Then, as you generate and submit your invoices, CA$H is deposited into your bank account in 24 to 48 hours. PREDICTABLE: You have access to a steady, predictable cash flow. Invoices can be submitted daily. CONTROL: No longer do your customers determine your cash flow. No longer are you held hostage to the whims of your customers. And you are freed of credit term abuses. UNLIMITED: Virtually unlimited funds are available. We try to match you up with a factor / funding source that can handle current and future growth. But, in the unlikely event that you do exceed the capabilities of the funding company, Noble Finance$ will assist in converting your account so that you have uninterrupted cash flow. COST SAVINGS: Factoring clients have the ability to take advantage of early payment discounts from their suppliers. Additional savings are made when you can take advantage of volume discounts. These savings can significantly offset the factoring expenses. GOODWILL: Paying suppliers on time improves vendor relations and fosters good will. Suppliers are incented to provide better and more timely goods and services. This is a win-win situation. Vendors are better able to survive and support your expansion and growth. GROWTH: Factoring provides the working capital you need to fund business fund growth in general and to fund new lines of products or services, in particular. DIFFERENTIATION: Without concerns about cash flow, you can attract more business by offering better terms on your invoices. Most companies negotiate on price to win business in a competitive market. Factoring allows you to negotiate with terms instead of, or in addition to price. SCALABLE: Your funding grows as your business grows. No need to re-apply for a new or increased loan or line of credit. PEACE OF MIND: Get freedom from worry about how to meet payroll and pay tax obligations. You'll have sufficient working capital to eliminate these concerns. COLLECTIONS: The factor handles the collections. This frees up time spent on collections. Factoring clients generally have faster payments, since customers tend to pay financial entities faster than they pay other corporations. FLEXIBLE: No obligations, no minimums, and no maximums. You can control some of the factoring fees by waiting to submit invoices.

Noble Finances: Accelerating Cash Flow. Sandra Noble, CPIM, MBA, DCFS, CDP is president of Noble Finances, which is a division of Noble & Associates Consulting, Inc. Noble Finances helps companies Turn their Accounts Receivables into CA$H Now! See http://www.GetCashFromReceivables.com/

Can Accounts Receivable Factoring Help My Company?

Are you stuck with great but slow paying clients? It is interesting how your biggest asset (great clients) can also be your biggest liability. But that is how business is. And as an owner you must adapt.

Whether you like it or not, slow paying customers are here to stay. As a rule of thumb, commercial clients pay their bills in 30 to 60 days. And lately, the trend has been deteriorating. So, what do you do if you have slow paying receivables.

Many owners try to go to the bank to get a business loan. Not surprisingly, few business owners get business loans. As a rule, banks will only finance companies that have long and established histories. This is not your case if your company is new or emerging from tough times.

If your biggest challenge is that you cannot afford to wait up to 60 days to get paid by your customers, then the solution is accounts receivable factoring. Most commonly known as factoring, this type of financing eliminates the usual wait to get paid. It provides you with the necessary funds to pay suppliers, meet payroll and take on new business opportunities.

And how does factoring work? Simple:

1. You finish the work and send an invoice to your client. You also send a copy to the accounts receivable factoring company. 2. The financing company advances you 70% to 90% of the invoice (a small reserve is held to handle disputes, etc.) 3. You get the funds in 24 hours 4. As soon the customer pays the invoice to the financing company, they rebate the reserve (less a small fee)

As you can see, accounts receivable factoring can easily be integrated into your business, providing you with prompt invoice payments. Usually, funds are advanced within 24 hours of submitting invoices.

Accounts receivable factoring is easy to qualify for. Accounts can be set up in as little as 4 business days. As opposed to business loans, the main requirement for factoring is to do business with strong credit worthy customers. So if you do business with good commercial clients (or the government), be sure to add factoring to your business tool chest.

About Commercial Capital LLC We can provide you with factoring, invoice factoring and accounts receivable factoring. For a no obligation quote, call Marco Terry at (866) 730 1922

Business Banking & Factoring

Business banking & factoring services help your business grow immensely

Several factors are responsible for the growth of your business including the hardwork that you put in, optimum finances, expert business knowledge, better business logistics and a host of other ancillaries.

Effective business banking and factoring services can provide your business the needed impetus that can bring a lot of positive results over the time.

An efficient banking institution is the prerequisite of any business organization. There are many aspects that you should consider when opening a new bank account for your business. Different business concerns have different banking requirements. Make it sure that the banking services offered by the banker meets your specific requirements. These days business bankers are providing services like online banking, anytime anywhere banking, telephone banking and similar other services designed to meet your business needs.

Other banking related service is factoring. Factoring means selling your business accounts receivable at discounted price to a factor. A factor may be a financial institution or a bank or any other institution that purchases accounts receivable from business concerns. Factoring allows you to get hold of finances for your business needs as and when they arise. You can get the needed cash within 48 hours. This process provides the immediate cash relief that your business so desperately needs.

There are many financial service providers and banking institutions in UK that provide very efficient business banking and factoring services for your business needs. You may compare their services online, consider the fees and charges that they impose and then select the one that suits your business requirements

Author: The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting seek-uk as a finance specialist. For more information please visit: http://www.seek.uk.com

Factoring Basics

Most sales to commercial clients usually carry 30 to 60 day payment terms. This means that as a supplier, you must deliver your products or services now. However, your client has between 30 to 60 days to pay you.

This creates a significant challenge for owners of small and midsize businesses. The problem is simple. Your clients want to pay you in 30 to 60 days, but you must pay rent, payroll and your suppliers now. As you can see, the math does not work. Unless you have a substantial bank account, this leads to an almost impossible situation.

If you are in this situation, it is also very likely that the bank will not be able to help you. As you well know, banks only lend to businesses that have three years of profitable operations and significant hard collateral. If you do not qualify for bank financing, your best bet may be to consider factoring.

Factoring is a business financing tool that helps business owners who cannot afford to wait 30 to 60 days to get paid by their commercial customers. Factoring provides you with the necessary funds to meet payroll, make rent and pay your suppliers on time.

As opposed to bank financing, factoring is easy to qualify for. The main requirements are that you have a profitable business with a strong roster of commercial clients. For the factoring company, your best collateral is the invoices from your strong customers.

Factoring is also easy to use. It enables you receive a substantial portion of your billings within a day of invoicing. It reduces the time you wait to get paid from 60 days to 2 days. The transaction is usually structured as a two installment sale of an invoice. The first installment, called the advance, is paid to you immediately. The advance can be anywhere between 70% and 90% of the gross value of the invoice. The remaining portion (10% - 30%) is held as a reserve to cover disputes and charge backs. The reserve is rebated as soon as the invoice is paid in full. The factoring company will charge a small fee for this service.

Factoring financing is an ideal tool for companies that are growing and that cannot afford to wait to get paid by the clients. It helps you to stabilize your financial situation and positions you for growth.

Commercial Capital LLC We can provide you with a factoring, invoice factoring or accounts receivables factoring quote for free. Marco Terry, the president, can be reached at 866 730 1922.