Tips For A Smooth Factoring Application

Tips For A Smooth Factoring ApplicationEvery day business owners juggle the cash flow demands of their companies.  More than ever, they are turning to invoice factoring as a trusted solution, because of its fast turnaround and flexible terms.

If you are considering accounts receivable funding it pays to be prepared. Save time and money by understanding these five tips: [Read more…]

How to Reduce the Costs of Factoring Invoices

How-to-Reduce-the-Costs-of-Factoring-InvoicesWhen a business needs cash they often turn to factoring accounts receivable as a financing solution. Of course a factoring company expects to earn a profit on the cash advance and charges a fee for their service.

Since the overall goal is improved cash flow, a company considering accounts receivable financing will carefully weigh the benefits against the costs. Here are four ways a business can reduce or offset the cost of factoring and still improve cash flow:

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How Recourse and Non Recourse Factoring Compare

How-Recourse-and-Non-Recourse-Factoring-CompareIf you plan on selling invoices it is important to know whether the funding proposal is for “recourse” or “non-recourse” factoring.  Here is an overview of both methods.

A Look at Non-Recourse Factoring

Just like it sounds, there is no recourse for unpaid receivables against the client. The client selling invoices is not financially obligated to the factoring company in the event an approved and funded invoice is not paid by the customer.

To protect their investment, the factoring company will check the credit strength of account debtors and verify invoices with customers.  They will also want to handle the payment collection and accounts receivable management.

Understandably, this is more expensive than recourse factoring.

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Discover Cash Flow Solutions For Your Business With Invoice Factoring!