Invoice Factoring: Turn Your Unpaid Invoices Into Cash Within 24 Hours

Do you own or run an expanding business? Are you looking for capital to realise your potential or ease pressure on cashflow?

The biggest asset of most businesses is outstanding invoices. But they are virtually useless until you receive payment for them. Using an invoice factoring service you can start using the cash nearly as soon as the invoice is raised.

Like many UK businesses you could find that Invoice Factoring offers a real alternative to traditional bank finance.

How does invoice factoring work?

Invoice Factoring is a fast and flexible way to release money from your sales ledger which would normally take 1-3 months to be paid.

When a sales invoice is issued a copy is sent to the finance provider. The finance provider pays the business up to 90% of the invoice value with 24 or 48 hours depending upon the facility. The remaining balance is paid to the business, less the finance charges, once the debt has been collected.

The management of your sales ledger is transferred to the invoice factoring provider who will contact your customers for payment and chase unpaid invoices in line with your existing systems. This can be a huge benefit for smaller businesses who have fewer resources and need to spend more time running the business and generating revenue.

Is your business suitable for invoice factoring?

Factoring is only suitable for businesses that offer goods or services on credit terms. By advancing up to 90% against invoices, factoring can bridge the gap between issuing an invoice and getting it paid. Such as facility can be a massive benefit to an expanding business by ensuring reliable working capital and predictable cashflow.

How can your business benefit?

Factoring can benefit a business in many ways, one of which is as a source of finance to aid expansion by releasing working capital tied-up in trade debtors. As well as providing cash in advance of customer payment it can also ensure that invoices are paid faster further improving cashflow.

Another major benefit is the reduction in sales ledger administration costs allowing key staff to drive the development and profitability of the business.

As factoring becomes more widespread, it is proving a refreshing alternative to traditional bank overdrafts without the need for lending reviews as borrowing limits are met or exceeded. Instead, funding is expressed as a percentage of outstanding invoices so additional finance is automatically made available as more invoices are raised.

Used correctly, Invoice Factoring can be a real asset to your business helping it to grow and prosper with minimal fuss or interference from finance companies.

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Loan Factoring

Factoring of receivables is an arrangement whereby a company sells its accounts receivables to another company (banks and other institutions) that specializes in buying them and obtains the necessary financial accommodation. It is the most popular method of short-term financing in the US. Factoring offers the following advantages: relief to manufacturers and sellers from the bother of collection of book debts, saving in time and man-power required for debt collection, and last but not the least, adequate and better source of financing.

The factoring institutions render the following functions: Credit recording- that involves maintenance of debtor?s ledgers, collection schedules etc. Secondly, there is Credit administration that includes the collection of debts. Thirdly, there is credit financing, whereby the factor advances money against receivables. Finally, there is finance and business information wherein advices are given to customers on current trends and challenges.

Commercial paper is an important money market instrument, which is in the form of unsecured promissory notes issued by firms to raise short-term funds. Certain conditions are to be satisfied before the issue of commercial paper. Permission should also be obtained from the credit rating agencies. Commercial papers are issued for a period ranging from 3 months to 6 months. Commercial paper offers alternative source of raising short-term finance, helpful in times of tight bank credit and is a cheaper source of finance.

Term loans are those loans that are extended for a specific period ranging from 1 to 15 years. Medium term loans are extended for a period of 5 years and long-term loans are granted for a period of 15 years. Term loans are granted for establishment, renovation, expansion and modernization of industrial units as well as meeting the requirements of core working capital and for repayment of bonds and preference shares. Term loans are usually secured. They have either a fixed or a floating charge against the assets of the company. They are granted on the basis of a formal agreement, which contains the terms, and a condition of providing loans.

Factoring provides detailed information on factoring, credit card factoring, loan factoring, invoice factoring and more. Factoring is affliated with Invoice Factoring Discounting.

Increase Cash Flow With Invoice Factoring

Invoice factoring is one of the quickest, easiest ways for business owners to increase their cash flow. If your business produces invoices, then invoice factoring is an option for you.

The process of invoice factoring works in just a few simple steps. When an invoice is created, you sell it to the ?factor? at a discounted rate ? usually about 3 to 5 percent off of the invoice total. Factoring means you do not have to wait for the customer to pay to start collecting money from the invoice.

First you, the business owner, notify the factor that the invoice has been created. Usually this can be done electronically. You provide the customer?s contact information to the factor, and the factor will confirm the invoice with your customer.

Typically, invoices are confirmed with a simple letter or phone call. Usually the factor appears to your customer to be a billing processor or department, confirming the invoice on your behalf. This way, the customer does not realize you have sold your invoice to a third party.

Some invoice factoring companies are willing to remain completely invisible to your customers. And after you have established a relationship with your factor, and they are more familiar with your business and your customer base, they will likely stop confirming every single invoice.

After the invoice has been confirmed, the factor pays your business what is known as the ?advance rate.? This is a percentage of the invoice total, typically around 70 to 85 percent.

The factor then collects the total amount of the invoice from your customer. They keep their 3 to 5 percent, and forward the rest of the total to you.


Invoices factoring increases your business? working capitol and helps improve the credit rating of your business. And, when factoring your invoices, you are in control. You decide which invoices to factor and which ones to collect yourself, based on your relationship with your customer base.

Have you just recently started up your business? Are you finding it difficult to build enough working capitol to run your business day to day? Invoice factoring can work as a bridge to get you over the rough waters after start-up until your business is able to run smoothly.

And, if your business has poor or no credit history, invoice factoring is an option to consider if loans or liens won?t work for you, or if you consider them too risky.

A steady, reliable cash flow is necessary for any business to operate smoothly. Worrying about your cash flow also causes business owners more stress than almost any other aspect of their business. Invoice factoring allows you to stop worrying. It is the simple, fast way to increase cash flow now.

Robert Michael is a writer for MZ Factoring which is an excellent place to find factoring links, resources and articles. For more information go to: http://www.mzfactoring.com"

Credit Card Factoring

Credit policy refers to the combination of decisions pertaining to variables such as credit standards, credit terms and collection. Credit standards constitute the various criteria on the basis of which the customers, to whom credit is to be granted, are evaluated by the firm. Credit terms contain the terms and conditions of extending the credit facility. They include, duration of credit, terms of payment, delivery schedule, discounts etc. Collection efforts comprise the steps taken by the firm in order to collect the book debts from the customers.

There are different types of credit policies being followed by factoring companies. A firm may either follow a tight credit policy or a liberal credit policy. A firm is said to be following a tight credit policy where it sells on credit on a highly selective basis only to those customers with proven credit-worthiness and are financially strong. A firm following a liberal credit policy sells on credit to customers on liberal terms and standards. Credit is granted even for longer periods to those customers whose credit-worthiness and financial soundness are well known.

A tight credit policy means rejection or refusal of certain types of accounts whose credit-worthiness is doubtful. This results in loss of sales and consequently loss of revenues. When the firm loosens its credit policy, two types of administration costs are incurred viz., the cost of credit investigation and supervision and the collection costs. An immediate consequence of liberal credit policy is the accumulation of bad debts, where the firm is unable to collect the debts. This happens because the firm tends to sell even to such customers with relatively less credit standing. In modern days, the credit policy is used as an effective marketing tool capable of boosting the sales volume of the firm. This may be used to maintain the market share, especially in a declining market. Credit policy helps to retain old customers and create new customers by luring them away from competitors.

Factoring provides detailed information on factoring, credit card factoring, loan factoring, invoice factoring and more. Factoring is affliated with Invoice Factoring Discounting

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

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

"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

What is Accounts Receivable Factoring?

Do you have clients that take up to 60 days to pay their accounts receivable? Waiting months to get paid for your invoices can wreak havoc in your company’s cash flow, especially if you have to meet payroll, pay suppliers and pay rent. But what happens if your business can’t wait to get paid because it must meet its obligations?

One solution to this problem has been gaining popularity recently. It’s called accounts receivable factoring and it allows you to turn your slow paying receivables into cash, almost immediately. It works by selling your receivables to a factoring company, who in turn, pays you on the spot. This provides you with the necessary cash flow to pay suppliers, rent and salaries.

Selling your receivables to a factoring company is relatively simple. It can be done with a 3-step process:

1. You deliver goods/services and issue an invoice
2. You sell the invoice to the factoring company who advances the first installment you up to 90% for them. The average advance is 80%.
3. Once your client pays the invoice, the factoring company rebates the remaining installment, less a small fee (installment #2)

As opposed to other financing products, accounts receivable factoring is easy to obtain and can be setup in a week or so. A critical benefit of a/r factoring is that the financing companies make their credit decision based on your clients. So, accounts receivable factoring is an ideal tool for small and medium sized businesses who cannot obtain bank financing but have a roster of solid customers.

About Commercial Capital LLC Commercial Capital LLC is a factoring company that specializes in accounts receivable factoring. For an accounts receivable factoring quote, please call Marco Terry at (866) 730 1922

The Laserlyte Lift? ? The First True Non-Surgical Face Lift

Nearly everyone over 30 years old sees wrinkles, loose skin and other signs of facial aging staring back at them in the mirror. Many would like to have a fresher younger looking face but no one wants to have plastic surgery. In recent years technological advances such as Botox?, Restylane?, Radiesse?, and new Lasers, IPL and skin tightening machines like Thermage?, Titan?, LuxIR?, and Aluma?, have improved the plastic surgeons ability to rejuvenate the face non-surgically, but none have been able to deliver the often promised ?non-surgical face-lift.? The best results have achieved about a 30 % tightening of the facial skin. Dramatic results have been achieved in ?wrinkle removal? when proper techniques have been applied, but true lifting or tightening of the facial skin has been modest at best

The new LaserLyte Lift? promises to achieve a much more significant rejuvenation and lifting of the face with a new non-surgical multi-modality technique three phase procedure which not only tightens the facial skin but also removes wrinkles and other aging changes on the surface of the skin?all achieved non-surgically with minimal or no down time.

This new non-surgical high tech procedure is based on the theory that all of the skin layers must be treated and rejuvenated to accomplish true facial rejuvenation and is based on the principles of the 6-step facial rejuvenation program? outlined in my book ?Save Your Face-The Revolutionary 6-Step Facial Rejuvenation Program.

The important changes in the facial skin which lead to an aged appearance occur predominantly in 3 layers-the epidermis or outer layer that you see in the mirror, and two deeper layers-the superficial and the deep dermis?the pink part of your skin you see when you scrape your knee.

As we age, the sun?s UV rays, and other age related factors damage all 3 layers of the skin. We see these changes in the form of wrinkles, brown spots and dry skin-changes in the Epidermis or outer layer. However the major changes causing wrinkles and sagging skin is damage to the 2 deeper layers of the dermis.

The result of aging changes in both layers of the dermis is the loss of collagen. Collagen plumps the skin and gives the skin its tone and elasticity. When we lose collagen from the dermis the skin loses volume and becomes wrinkled-the same way a plum turns into a prune when it loses water after drying. In addition when we lose collagen we lose elasticity, the skin does not snap back when we pull on it and release it, and the skin sags.

The key to non-surgical facial rejuvenation or a non-surgical face-lift is to remove the superficial aging changes form the superficial epidermis and restore new collagen and thus volume and elasticity to both the superficial and deep layers of the dermis

Contemporary non-surgical methods such as laser, IPL, Radiofrequency (Aluma?, Thermage?), and Infrared (LuxIR?, Titan?,) energies are capable of treating the surface of the skin and the deep dermis, but do not treat the middle layer of the dermis and thus cannot achieve complete non-surgical rejuvenation or a non-surgical face-lift.

New technology has finally enabled us to treat the middle skin layer-the upper dermis and stimulate new collagen regeneration in this layer using a 1540 fractionated erbium laser made by Palomar, with minimal or no down time. Thus we are now able to treat all three skin layers affected by aging, removing surface irregularities such as wrinkles, brown spots, and dry skin, and restoring collagen and thus plumping volume and elasticity to the middle and deep skin layers.

Thus we can achieve a true non-surgical facial rejuvenation or non-surgical face-lift for the first time addressing all three layers of the aged skin.

This procedure is called the LaserLyte Lift? because Laser and other forms of light (lyte) energy are used to treat the three skin layers. The procedure takes time, as it requires multiple treatments scheduled several weeks apart over a time course of several months. However the results are striking-you can see them and believe them?you don?t have to try to convince yourself that they are there as you have with so many ?miracle wrinkle cures? you have tried in the past.

The LaserLyte Lift? involves three treatment protocols or phases.

Phase I begins with the important first 2 steps of the 6-step program?, deep exfoliation and stimulation of new collagen growth near the surface of the skin. This phase removes wrinkles, brown spots and restores the skins shiny glow. This is the LaserLyte Peel? achieved with the Lumenis Active Fx laser. This peel is performed with a topical skin anesthetic, takes 25 minutes, and leaves you pink for 4-5 days. Some people only need one peel others may need 2 or 3.These peels are scheduled 6-8 weeks apart.

Phase II-which is painless and involves no down time begins about 4weeks after your first LaserLyte Peel and is the start of your skin tightening regimen through stimulation of new collagen growth in the deep dermal layer by the application of Infrared or other energy which penetrates through the epidermis and superficial dermis to the deep dermis, to restore collagen and elasticity and tighten the facial skin. Treatments are spaced 4 weeks apart and at least 4 sessions are required.

The start of Phase III, mid dermal collagen stimulation, which involves no pain and minimal pinkness for a few hours only, using the 1540 or similar effective wavelength starts at a variable timetable depending on how many LaserLyte Peels you need. If you only need one peel Phase 3 can begin as early as 2-3 months and be alternated with Phase 2 at 2-week intervals. If you need 3 LaserLyte Peels then Phase 3 will not begin until 5-6 months.

While the LaserLyte Lift? takes time it is the only method of facial rejuvenation to actively treat all three layers of the skin and thus the only method to achieve effective facial rejuvenation non-surgically. In fact, the LaserLyte Lift? achieves more thorough facial rejuvenation than a surgical face-lift. A surgical face-lift only tightens the skin, after a surgical face-lift you have tight ?old? skin. The LaserLyte Lift? renews and rejuvenates all three skin layers, thus when you are finished your face truly looks younger, and remember, you are avoiding surgery and its dangers and discomfort. More importantly you are achieving true facial rejuvenation with wrinkle removal and new collagen, which plumps and tightens your skin to a truly youthful appearance.

As technology advances we undoubtedly will be able to achieve results is less time. However at present the LaserLyte Lift is the only method for rejuvenation of all three skin layers and it takes several months to achieve a good result.

For some people with very severe aging plastic surgery will be the best option, either in the form of a face-lift or laser resurfacing or both.

But for the vast majority of my patients who I see daily in my practice the LaserLyte Lift? is an excellent way to achieve true facial rejuvenation without surgery a real ?non-surgical? face-lift, with results you can see. No face cream, diet, laser, IPL, or other technology alone can achieve as good a result.

If you start before you have severe aging changes you will likely never need to have a face-lift.

Dr Brooke R. Seckel, Asst. Professor of Surgery at Harvard Medical School was recently named a Top Doctor in Boston by Boston Magazine. He is also listed as one of the Best Doctors in America. Dr Seckel is an internationally recognized expert in Plastic Surgery. Dr Seckel?s office is in Boston at 617-262-2208 or at http://saveyourface.com/