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  • Nationwide Invoice Factoring Company

THE ART OF FACTORING

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The Difference Between Cash and Accrual Accounting

The cash method of accounting is the most common choice for small business owners. Under the cash method, you don’t count income until you have the cash or the check in hand and you don’t count expenses until the money leaves your account. In comparison,

Invoice Factoring Information

Temporary Staffing Companies

Accounts receivable factoring companies often times assist personnel staffing firms in growing their business. The overwhelming labor quotient can become a real headache from lack of cash flow, as bigger contracts are signed and more employees are placed.

Invoice Factoring Information

Commercial vs Consumer

Factoring is primarily a B2B (business to business) financing mechanism. This is largely due to the way the legal system handles a consumer transaction as opposed to a business transaction.

Invoice Factoring Information

Profit motive

high volume, low margin sales, then factoring invoices might not be your best solution. These are usually businesses that import an item to sell to wholesalers and distributors

Invoice Factoring Information

Is Factoring Right For Your Business?

Using invoices as collateral, 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.

Invoice Factoring Information

Pre-Billing Not Acceptable

Submitting an invoice to be factored by the factoring company prior to the work being done is called pre-billing.

Invoice Factoring Information

Signature Loans

In order to secure a signature line of credit act like a business owner trying to get a loan. Put together a package that includes; information about your business, a list of customers you have lined up, show what money you have already invested in the business

Invoice Factoring Information

Factoring Deliverables

initially setting up your agreement with the customer, specifically outline the work to create DELIVERABLES or MILESTONES that allow you to invoice. This is much more preferable than billing along the way aka PROGRESS billing.

Invoice Factoring Information

Is it done yet?

the work must be completed and accepted. Whether you provide a service or sell a product, the customer has to be fully satisfied with the transaction. A factor cannot extend credit on unfinished business. By assigning the proceeds of an invoice to the factoring company you step out of the collections loop.