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Archive for June, 2010

Factoring Fee vs Annualized APR

Monday, June 28th, 2010

There is a distinct and real difference between a Factoring Fee and an Annual Percentage Rate when discussing the price of interest on a loan. Comparing the two is like saying that an all season radial tire is the same as a bicycle tire. They’re both round, made of rubber, help you get somewhere, but [...]

TeamingUSA to Help Win Government Business

Tuesday, June 22nd, 2010

TeamingUSA.com is a fantastic organization for entrepreneurs looking to get into the Federal market. The website provides a platform whereby your company can list, for free, all its capabilities. Using NAICS codes and keywords, companies looking to partner up to win a contract award can find each other. Here is what they say;
Government agencies — [...]

PACA Lenders

Thursday, June 17th, 2010

A factoring company has to be particularly careful when financing invoices related to agriculture products and services. Thanks to the Perishable Agriculture Commodities Act (PACA) which congress passed for the protection of suppliers and sellers of perishable agriculture products. Because the accounts receivable that is generated from the sale of perishable products can be liable [...]

Prime Contractors vs Sub Contractors

Monday, June 14th, 2010

If you are doing work for a very large company or even a U.S. Federal government agency, but you actually invoice another company, they are the PRIME contractor who then invoices the large end user entity. That makes you the SUB contractor. Even though the end user is a large organization and probably creditworthy, when [...]

Factoring As A Bridge

Wednesday, June 9th, 2010

If you are considering using invoice factoring for your ongoing operational capital needs remember it should only be used as a temporary bridge to get to institutional (bank) financing. By factoring your accounts receivable to get through a intense growth period you can effectively maneuver through the tough cash squeeze stage as the business gains [...]

Factoring The Sum Of It’s Parts

Thursday, June 3rd, 2010

The basic invoice factoring transaction has three parts. First is the “advance,” which is the percentage of invoiced dollar amount that is funded initially. It is the percentage of the total value of the invoice. For example, if the invoice submitted is $10,000 and the advance rate is 80% then the advance will be the [...]