Because a factoring company wants to make sure a business is being run properly, we take a good look at a prospective borrowers financial statements. In this post Ken Kaufman, Founder & CEO of CFOwise®, stresses the importance of having bookkeeping that reflects the true accounting of the business. Poor quality financial statements are a [...]

It’s typical for companies to outsource internal services to firms who provide such services for efficiency. Services such as payroll taxes, human resources, bookkeeping, collections, and accounting are commonly outsourced. Invoice factoring may be considered “outsourced cash flow.” By factoring accounts receivables to better manage and even out working capital short falls, a company [...]

We’ve recently begun to integrate electronic digital signatures into our invoice factoring process. There is ample legal precedents to now feel secure about this method of signing documents. The law protecting electronic signatures was passed by the Clinton Administration back in 2000. Here is a New York Times article about it at the time. And [...]

Commercial finance writer Sam Thacker writes a nice blog post on the basic accounting question; What’s the difference between Cash and Accrual methods? His description includes what lenders, like a factoring company, typically look for with these forms of bookkeeping.
With regard to revenue recognition, cash basis bookkeepers recognize revenue when they receive it. Expenses are [...]

A not too uncommon situation business owners have getting an upcoming contract underway is the capital to get organized. A problem arises when assuming that a purchase order or contract award for a product or service will allow the business to get cash from a commercial finance company in order to perform on the contract. [...]