It appears that all the economic clouds are gathering to form a perfect storm for receivables factoring. The previous down cycles still had banks offering commercial financing to marginal borrowers. Marginal meaning that the borrower might not be quite ready to secure funding, but the banks were willing to make the loan happen. Not today. [...]

Entrepreneur online mag found three bankers who actually want to make loans to small businesses. In their interview they discuss the current climate and what they like to see when a business approaches them for a loan.
If you’ve never applied for a business loan, approaching a bank can seem daunting, and add to that the [...]

This is an excerpt from an article about choosing between debt and equity financing;
“At various times in the life of a company there are going to be requirements for outside capital in order to grow the business. Choosing which type financing vehicle is best for your company is very important. Deciding whether to seek equity [...]

Sometimes invoice financing from a factoring company may not be available for a business owner. Companies without revenues and invoices, or maybe just trying to get formed will need access to other forms of capital. One very good option is the local community bank. Local banks are tasked to help small businesses. If the amount [...]

Factoring companies rely on the creditworthiness of the customers who purchase goods and services from its clients. On a day to day basis the factor is checking the credits of the customers in order to make funding decisions. Indeed one of the main benefits of invoice factoring is the ability to get working capital from [...]

Factoring companies provide commercial financing by making advances on accounts receivable. An invoice is defined as a product and/or service that has been delivered / completed and accepted by a creditworthy customer (account debtor).
Examples of good invoice factoring scenarios;
- Growth businesses with wide fluctuations in receivable balances
- Or a business that is having [...]

The Street.com’s Sharon McLoone has a good article that describes how to make a business loan package more appealing. It includes; working with a CPA, contacting the business banker directly, work on your business plan, give a good explanation of your business, know your industry, know your region and have a good strong financial statements. [...]

Meet the Adjuvancy, who provide high level strategic planning for emerging companies. They review and assess operational performance, and can therefore provide true strategic planning. Adjuvancy understands and has extensive experience in operations, finance, development, and management. Whether cost containment, turnaround, expansion efforts, mergers or growing pains they bring their expertise to bear.
Here they discuss [...]

If you are a technology entrepreneur you may have heard of Guy Kawasaki. He’s been around the block quite a few times and has seen pretty much all there is as far as cutting edge ideas. Here he distills what he knows in a speech he calls The Art of the Start. It may not [...]

Wikipedia on invoice factoring: Factoring is a financial transaction whereby a business sells its accounts receivable (i.e., invoices) at a discount.
Factoring differs from a bank loan in three main ways. First, the emphasis is on the value of the receivables (essentially a financial asset), not the firm’s credit worthiness. Secondly, factoring is not a [...]

Pulling operational capital out of your invoices by factoring can be a useful tool for the right business situation. Accounts receivable financing is used primarily to assist in labor intensive contracts with strong creditworthy customers. When a company secures a nice contract, and hires new employees to do the work, they will have to be [...]

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Dateline January 19th: New York Times “Cost of Borrowing Zooms Higher For Corporations” Like consumers and homeowners, America’s corporations binged on easy credit when times were flush, racking up huge debts. Now the bills are due, and paying them back will not be easy, or cheap. But with the credit markets still tight, corporations [...]

Anyone who thinks they know about raising equity capital and doesn’t know who Guy Kawasaki is, is in trouble. He tells it like it is, and never suffers fools gladly. Dave Lavinsky, one of the founders of Growthink does a fun interview with Guy about his new book Reality Check. You can listen to the [...]

How can factoring help growing companies?
Invoice factoring, also known as accounts receivable factoring, is an increasingly popular financial tool that allows companies to capitalize on the power of their outstanding invoices. Whenever a business extends terms to a customer they essentially offer them credit. Factoring enables the business to convert their invoices into [...]

It is very typical for companies to outsource internal services to firms that provide such services for economy and efficiency. Services such as payroll taxes, human resources, bookkeeping, payables, collections, and accounting are commonly outsourced. Invoice factoring can be considered outsourced cash flow. By factoring accounts receivables to better manage and even out cash flow [...]

Thanks to Judy Bradt the owner of Summit Insight, LLC for providing a list of ways to determine whether your business is a good candidate to get into the US Government contracting game. It’s not for everyone, but great for those willing to make the effort. Get in touch with Judy to help build a [...]

With the worst credit crisis upon us since the Great Depression, institutional lenders have significantly reduced their LTV/LTC’s on loan transactions. This has translated into requirements for increased equity contributions and pressure for seller financing in the M&A arena. The traditional view is that most businesses only utilize accounts receivable factoring to make payroll and [...]

Here are a few distinctions to differentiate invoice factoring from a standard bank line of credit. The cost of funds for a line of credit is going to be less expensive versus accounts receivable financing from a factoring company. But the bank is looking for two financial milestones when considering a loan. The collateral - [...]

Current market conditions have factoring companies working hard on many new accounts. Because accounts receivable financing is so easy to set up and quick to deliver, businesses are moving right now to get started. But if a business is considering invoice factoring, they need to be accessible. Both by phone and email, the factor can [...]