Q: How involved will you be in collecting on my invoices? A: Collections are a very important part of running any business, however, many small business owners simply do not have the time or resources to put into it. When factoring your invoices, you also get a partner in helping with invoice collections. A factor will do “soft collections” to … Read More
What Payment Terms Should I Offer my Customer?
Less is More! The quicker your net terms the faster your invoice gets paid. We suggest no credit terms, but instead “Due on Receipt” But…. Many businesses require payment terms of Net 30, Net 45, or even Net 60 day. Invoice factoring can be the answer. Factoring puts money in your account while your net terms are ticking away. The … Read More
Can I Factor Slow Paying Customers?
Q: Can I factor my slow paying customers? A: There are two different views when it comes to what customers you should factor. Your factoring company will have specific terms that they can hold invoices for if they are a recourse factor. Most companies will offer NET 90 terms, meaning your invoice must be paid or offset by 90 days. … Read More
How Much Does Factoring Cost?
Invoices factoring or AR Financing is a great way to increase cash flow while not incurring additional debt. You get paid immediately for invoices instead of waiting 30-60 days for payment from your customer. But how much does it cost? That is the all-important question. Many people believe factoring is very expensive and only done when your cash flow is … Read More
4 Key Differences between Invoice Factoring and Merchant Cash Advance
Every small business owner knows that cash flow is crucial for the growth of a company. One method of financing that you may have heard about is a merchant cash advance, or MCA. On the surface, it sounds like it might be similar to invoice factoring – but is it? The following are 4 of the biggest differences between the … Read More
Lead Generation for Small Businesses
As a small business, finding clients or potential customers can be difficult and time consuming. With the proper steps, you can acquire plenty of customers to keep your business running. Here are a few lead generation tips that can help your business grow. Customer interaction: This initial interaction could be as simple as downloading an app, or signing up on … Read More
6 Ways to Get Paid Faster
One of the most vital parts of running a small business is getting paid on time. Cash flow is everything, and prompt payments are a lifeline. So, what do you do when clients refuse to pay, or are slow to tie up invoices? These simple tips should prevent unwanted delays and difficult customers from damaging your business. Write a contract. … Read More
Keeping Your Business on Track in Challenging Times
Crises such as the current coronavirus pandemic can present new challenges for small businesses. How you respond to a crisis can define how your company succeeds and grows in the long term. Here are some strategies to consider to help your business during a crisis period. Prioritize your employees. In a difficult period, a great team can make all the … Read More
Factoring Can Help When Cash-flow is Squeezed
Factoring can be an excellent option for companies facing a cash-flow squeeze and slow-paying customers. You company can sell their invoices or accounts receivables to a factoring firm for a quick turnaround on their receivables. The factor advances most of the invoice amount — usually 80% to 85% — after checking out the credit-worthiness of the billed customer. When the bill is paid, the … Read More
Invoicing Tips to Maximize Cash Flow for Your Small Business
Automate invoicing. The right software can automate your invoicing process and cut down on mistakes made by manually billing your customers. Wave, Zoho Invoice, and QuickBooks invoicing software are great platforms to help you automate your invoicing. Number your invoices. Be consistent with your invoice numbers to avoid confusion and help find past invoices quickly. Some invoicing experts recommend that … Read More