It is still amazing that most business owners do not know about factoring. With all the financing available the idea of factoring invoices for operational cash flow is still not widely considered. The concept is very simple to understand, easy to set up, flexible to use, and very important to the businesses that stumble onto [...]

When factoring your invoices obviously the cost is a concern. But it is a mistake to compare the 30 day discount rate with a normal annual percentage rate. In order to consider the “normal” APR a business has to qualify at a bank for an annualized loan. That usually means 3 years of tax returns [...]

Business owners who are considering factoring receivables often comment something along the lines of “my accountant suggested we look into factoring our invoices but we don’t want our customers to know about it.” Or, “can you do transparent factoring?” Like what we do is somehow wrong and shameful. How’d you like it if your customers [...]

Another meeting this past Friday leads to a review the UCC. An early stage company is getting going and they need some extra cash to start out. The owners go to their local bank and ask for a loan. Being an early stage company they don’t have historical profitability or real assets. What they usually [...]

When considering using accounts receivable financing for your capital needs remember it should only be used as a bridge to ongoing institutional (bank) financing. By factoring your invoices to get through a growth period you can effectively maneuver through the tough cash squeeze stage as the business gains momentum. Access to capital is key. Going [...]