|
Article Directory
|
+ Authors
+ Articles
|
|
|
|
An Introduction to Accounts Receivable Financing
Copyright (c) 2007-2012 Toby Seibert
Accounts receivable financing or factoring, as it is called in the financial industry, can be combined with various other financing methods to help a business to accomplish an effective cash flow process.
It's all about the business owner's mental attitude and enthusiasm. One has to be aware of his or her point of view and how they think about their business. Of course one can't make up their own rules about how commercial finance companies, financial institutions, and banks work. What they can do is opt to alternative financial resources that are available to them. When regular small business financing methods such as credit and loans are limited, some small business owners turn to an accounts receivable finance company for the help they need.
As an entrepreneur and small business owner, the individual may well know the struggle of attaining capital in order to finance the growth of their business. Cash flow shortages can seem like a real nightmare, even to the most optimistic persons.
Accounts receivable funding can be a form of quick financing. It does not require a business plan or tax statements. The use of an accounts receivable factoring company has saved many businesses from the grips of financial terror and ruin.
Accounts receivable loans are the selling of outstanding invoices or receivables at a lower price to a finance company. The rate at which a company can sell their invoices will be anywhere from 70-90% of the original value of the available invoices.
The finance or factoring company will complete a credit analysis on the account debtors (Payors), whose invoices the business plans to factor, and credit limits are assigned on a per account debtor basis. The advance rate that is assigned to the customer's account will depend on the age of the receivable and the account debtor's credit rating. Any accounts receivables that are over 90 days old are typically not financed. An adequate advance based on the unpaid invoices can provide substantial cash for the necessary bills and other costs assumed with running the supplier's business.
When a business takes the opportunity to outsource their accounts receivables to a financial company, it frees up their own resources, enabling the business to focus on more productive activities such as selling the company's products and services.
Any business manager who is considering the use of a factoring company to help them liquidate their invoices should ask themselves the following questions:
1. Is the immediate cash-on-hand really necessary for the survival of the company?
2. How does this action match the company's business plan?
3. How can the company take advantage of the opportunity in more ways than one?
4. Is the business ready for more cash and growth expansion?
5. Have other possible sources of business financing been explored?
6. What are the current trends in the industry? Is there a weak or dry spell on the horizon?
7. Is it really a favorable time to finance?
Carefully consider all options and reasons. For some businesses, the discount rate could mean the difference between survival of the business and going bankrupt. Spend the necessary time to dig deep to investigate the factoring companies being considered and their costs.
Using accounts receivable financing or factoring can buy a business time to eventually qualify for a regular line of credit from a financial institution. It can also give the business the necessary time and cash flow to boost income, so that the business can grow and thrive.
Be careful when selecting a receivables finance agency. Pay close attention to the fine print of the contract; the factoring company's contract might include invoice minimums, monthly minimums, regular audits, facility fees, and other hidden fees. The business manager should make sure to notice and understand any excess or assumed costs or fees, when utilizing a receivables factoring company.
Once the facts of the various offers are known, the decision maker will be better prepared to know a good factoring company when they see one. With some receivable loan agencies, an account will be set up within three- to five- working days, while other providers may take up to 30 days. Some factoring companies can only finance your invoices up to a few thousand dollars, while others have the financial resources to support your business invoices up to ten million dollars. These are all important options to weigh when choosing a factoring service.
The use of an accounts receivable financing company can be a very advantageous. Such a service allows the business to focus on sales and operations, without having to worry about invoices getting paid on time.
Copyright (c) 1st Commercial Credit.
Toby Seibert writes about commercial finance. 1st Commercial Credit can help you with your business growing pains, with financing rates as low as 1.59%, with no fees and no minimums. They finance invoices from $5,000 to up to $10 million with flexible approval decisions. Call 1-800-450-9653 or visit their website: http://www.1stcommercialcredit.com
|
Follow "The Phantom Writers" on Twitter
(@phantomwriters)
to be notified when new articles are made available.
VOTE ON THIS ARTICLE
Needs Work >>
0 -
1 -
2 -
3 -
4 -
5
<< Excellent Article
Tell our authors what you think about their article.
|
Top-Level Category: Business Offline Articles || Related Categories: Business Online Articles
10 Most Recent Articles Written by Toby Seibert
Factoring Receivables: Can Businesses Benefit from an Advance of Funds Based on Accounts Receivables
Written by: Toby Seibert |
Distributed: 2007-08-13 |
Word Count: 867 |
Page Views: 1629
| Votes: 7 |
Rating: 1.43
The most important calculation on any balance sheet is the line
where the expenses are subtracted from income, to determine a
company's net profit. Many businesses struggle to simply make
ends meet, when it comes time to pay the monthly bills and the
costs of keeping employees.
The Importance of Invoice Factoring For Your Business
Written by: Toby Seibert |
Distributed: 2007-08-13 |
Word Count: 835 |
Page Views: 1940
| Votes: 4 |
Rating: 4.25
Invoice factoring is an important strategy for businesses of any
size, and it provides an effective way to turn outstanding
invoices into quick cash.
Factoring Receivables Can Allow Your Business to Turn Outstanding Invoices Into Usable Financing
Written by: Toby Seibert |
Distributed: 2007-08-10 |
Word Count: 700 |
Page Views: 1430
| Votes: 7 |
Rating: 2.29
If a company makes sales, it's likely that it has outstanding
invoices. The customer orders a product or service. Then the
seller creates an invoice and ships the product or completes the
required service. And then, the seller waits for its customer to
pay. Accounts receivable financing is a tool that can help a
seller improve their cash flow and reduce their wait time for
customer payments.
Eliminate Business Cash Flow Shortages Once And For All
Written by: Toby Seibert |
Distributed: 2007-08-10 |
Word Count: 636 |
Page Views: 1334
| Votes: 4 |
Rating: 4.50
When someone owns a small business, there are a million things to
take care of, and one can't afford to worry about attaining
capital for financing the growth of the business. When a company
is facing the problem of not having a credit rating that will
support bank loans, the company should look into learning more
about accounts receivable financing.
Why Factoring Receivables Count for Your Business
Written by: Toby Seibert |
Distributed: 2007-08-09 |
Word Count: 844 |
Page Views: 1395
| Votes: 6 |
Rating: 3.50
If a business is having trouble keeping up with payables, due to
unpaid invoices, the process can take a significant toll on the
cash flow of the business. Helping to reduce this impact is a
primary goal of a factoring company, and factoring receivables is
an effective way to close the gap between its bills and the cash
available for the business to operate efficiently.
How Factoring Companies Can Help Your Business Succeed
Written by: Toby Seibert |
Distributed: 2007-08-09 |
Word Count: 771 |
Page Views: 1396
| Votes: 5 |
Rating: 3.20
At the root of many successful businesses is an effective cash
flow structure that is able to manage accounts receivable and
lending against receivables. Cash flow management is vital to the
profitability of a business, because commercial enterprises must
also pay bills, just like everybody else.
Why Businesses Need Receivable Factoring In Cash Flow Management
Written by: Toby Seibert |
Distributed: 2007-08-08 |
Word Count: 866 |
Page Views: 1887
| Votes: 5 |
Rating: 4.60
In today's business environment, many businesses need to
fine-tune the process of getting paid on invoices, in order to
improve their cash on hand. Improving cash flow can be an ongoing
challenge for businesses of all sizes, and it is an issue that
must be addressed to ensure the long-term viability of the
business.
What Is Asset-based Lending, And Will It Help Your Business?
Written by: Toby Seibert |
Distributed: 2007-08-08 |
Word Count: 773 |
Page Views: 1519
| Votes: 3 |
Rating: 2.00
Securing financing for a growing business can be a daunting task,
but it's good to know what options one has available, especially
in today's competitive financial industry. Creating positive
cash flow should be the top goal of any business. By prioritizing
investments and improving day-to-day operations, a business can
deliver immediate improvements to its cash flow outlook.
Could a FactoCash flow shortages can seem ring Company Help Your Business Access the Funds You Need?
Written by: Toby Seibert |
Distributed: 2007-08-07 |
Word Count: 783 |
Page Views: 1337
| Votes: 3 |
Rating: 2.67
Businesses in a variety of industries often find that funds tied
up in outstanding invoices could help them meet immediate
financial obligations. Providing a service to customers usually
warrants immediate payment, however most businesses offer billing
at a later date to secure more sales.
All of Author's Articles on this site: Toby Seibert Articles
Most Recent "Business Offline" Articles
How To Build a Strong and Powerful Business During a Recession
Written by: Trey McMartin |
Distributed: 2011-11-10 |
Word Count: 987 |
Page Views: 466
During a recession, most business owners pull the reins on
advertising budgets, fearful of what tomorrow might bring...
Those who remain fearful have forgotten what made them the
success they are today... They have forgotten that they have
a God-given talent to overcome the incredible obstacles in
their paths.
SEO Lessons from Local Businesses
Written by: Trey McMartin |
Distributed: 2011-11-09 |
Word Count: 945 |
Page Views: 871
More than once in the six years that I have been providing
SEO services for websites, I have had the opportunity to
discuss with individual business owners their search engine
optimization needs. Now and again, I run across an
individual business owner who is quick to say that SEO is
absolutely worthless. When confronted with such an absolute
statement, I like to press for details. It has been my
experience that people who speak in negative absolutes will
have a horror story to share.
Where Will FDA Target Next? What IVD Manufacturers Should Know Before Their Next FDA Audit
Written by: Norm Howe |
Distributed: 2011-09-12 |
Word Count: 706 |
Page Views: 353
Medical device manufacturers are always interested in knowing
what FDA's next area of focus will be. Well, if you're an In
Vitro Diagnostic manufacturer you might review your measurement
systems.
Online Fax - 10 Reasons To Get An Online Fax Service
Written by: Titus Hoskins |
Distributed: 2011-09-12 |
Word Count: 560 |
Page Views: 366
Online faxing is the new more modern way to fax. If you or your
company is not using an online fax service, here are 10 good
reasons why you should get it.
Best Effort Essential for the Job Interview
Written by: Barbara Wulf MS, ACC, CPCC |
Distributed: 2011-07-30 |
Word Count: 676 |
Page Views: 446
Interviewing will determine if you are the right person for the
job. These tips will help you make the job interview a success.
Go Green With Your Career Search
Written by: Barbara Wulf MS, ACC, CPCC |
Distributed: 2011-07-28 |
Word Count: 636 |
Page Views: 361
Many of the qualities of green living, like recycling and
sustainability, can apply to a career search, even if the
career is not directly associated with green industries.
ReCareer in the Second-half of Life
Written by: Barbara Wulf MS, ACC, CPCC |
Distributed: 2011-07-26 |
Word Count: 525 |
Page Views: 423
| Votes: 1 |
Rating: 3.00
Many of us worked the first half of our life to "fit" the
job description. ReCareering is about finding the right fit,
being selective, being creative, being fulfilled and being
intentional about how you spend your time.
Up in the Air
Written by: Barbara Wulf MS, ACC, CPCC |
Distributed: 2011-07-24 |
Word Count: 678 |
Page Views: 427
When looking for work or changing careers, go beyond researching
on the internet and reading articles. Find out how you can learn
from the art of listening and having a conversation.
Salon and Spa Owners: Which Monk Are You?
Written by: Dan Lok |
Distributed: 2011-07-05 |
Word Count: 477 |
Page Views: 465
Too many salon and spa owners are carrying around a lot
hurts, regrets, guilt, past failures and fears about the
future. But no one is forcing you to carry these emotional
rocks, so put that sack down!
The Single Most Profitable Day You Spend on Your Spa or Salon!
Written by: Dan Lok |
Distributed: 2011-06-30 |
Word Count: 470 |
Page Views: 569
Salon and spa owners need to combine their marketing plan
with marketing systems. A marketing calendar plans out
strategies for a year, and is instrumental to the success of
your spa or salon.
Most Viewed "Business Offline" Articles
How To Write A 300 Page Book In Four Months
Written by: Mark Silver |
Distributed: 2008-07-15 |
Word Count: 821 |
Page Views: 36741
| Votes: 6 |
Rating: 1.83
There's a lot of hoopla about becoming an author of your very
own business book. The promise of fame and fortune is very
alluring. Yet your book remains perpetually 'about to be'
written. Meanwhile your business has ground to a halt. Hmmm...
might there be a better way to get a book written?
The Best Marketing Book I've Ever Read (You'll Be Surprised)
Written by: Judy Murdoch |
Distributed: 2007-05-09 |
Word Count: 1522 |
Page Views: 33878
| Votes: 15 |
Rating: 3.60
From time to time someone asks me to recommend marketing books.
Here's one of my favorite marketing books that always surprises
people. Curious? Read on.
The Bizarre History Of The HOLLYWOOD Sign
Written by: Morris Timlen |
Distributed: 2008-11-05 |
Word Count: 1211 |
Page Views: 28588
| Votes: 22 |
Rating: 3.32
The most famous sign in the history of mankind is the one that
graces the side of the hill above Hollywood, California. As
famous a landmark as the Christ the Redeemer statue in Rio De
Janeiro, the Eiffel Tower in Paris France, the Great Pyramid of
Giza in Egypt, The Church of the Savior on Blood in Saint
Petersburg Russia, and the Statue Of Liberty in New York City,
the Hollywood sign is known around the world as the symbol of the
American movie industry.
What Does It Take To Be A Successful Salesman?
Written by: Casey Moher |
Distributed: 2008-08-05 |
Word Count: 930 |
Page Views: 16096
| Votes: 68 |
Rating: 3.16
In the course of my average workweek, I meet people who tell me
that they have no sales experience, and very literally, many
will tell me that they could not sell if their lives depended on
it. Do you fit into this mold? Do you seriously believe that you
can sell me on the idea that you cannot sell things?
Selecting Between a 401(k) And 403(b) For a Nonprofit
Written by: Daniel Lamaute |
Distributed: 2007-10-11 |
Word Count: 333 |
Page Views: 6842
| Votes: 17 |
Rating: 2.65
Newly released IRS regulations impose several new requirements
and fiduciary responsibilities on employers with 403(b) plans.
While the regulations generally don't take effect until January
1, 2009, there are some provisions that apply sooner.
Pitch A No-Hitter With Baseball-Themed Flower Gifts
Written by: Wesley Berry, AAF |
Distributed: 2007-12-25 |
Word Count: 413 |
Page Views: 6112
| Votes: 16 |
Rating: 1.94
Want to send a gift to the baseball fan in your life that's sure
to knock one out of the park? Send flowers with a baseball
theme! Everyone loves flowers and when you personalize them to
include the recipient's favorite hobbies, like baseball,
they're sure to make an even greater impression.
Never Write A 'Thank You' Letter Again
Written by: Perry Maisin |
Distributed: 2008-08-12 |
Word Count: 971 |
Page Views: 5871
| Votes: 17 |
Rating: 2.29
When I was in graduate school, I had a friend who interviewed at
fortune 500 companies and succeeded at landing a great job. One
day, I saw him sitting in the student union with a stack of
cards. The cards said 'thank you'. He opened each card and
signed his name. The inside of the card was blank. I asked him
what he was doing and he told me that it was important to send a
'thank you' to every person you interviewed with. He believed
that that was the difference between getting the job and being
passed over.
Conducting Effective Career Aspiration Discussions with Employees
Written by: Andria L. Corso |
Distributed: 2010-03-10 |
Word Count: 690 |
Page Views: 5332
| Votes: 8 |
Rating: 1.88
Enhance your talent management and development programs
through conducting career aspiration discussions with your
employees. Find out where they want to grow their career to
determine if it matches your business needs. This will
enable you to differentiate your employee development to
grow the future leaders of your company.
The Pros And Cons Of Postcard Marketing-direct marketing offline
Written by: Cheryl Miller |
Distributed: 2006-11-29 |
Word Count: 675 |
Page Views: 4001
| Votes: 5 |
Rating: 2.60
Postcard marketing is one of the oldest methods of marketing. Its
concept is simple but can be quite effective. It is just sending
out your message to your mailing list on a postcard. Postcard
marketing is a powerful and cost effective way to advertise and
will keep building in momentum when done correctly.
The Tea Room Business Plan – First Steps And Start Up Basics
Written by: Marcus Stout |
Distributed: 2007-03-22 |
Word Count: 1218 |
Page Views: 3706
| Votes: 19 |
Rating: 2.63
Every venture starts with the first steps and a business plan for
a quality tea room is no exception. Well thought out first steps,
properly implemented, will pay dividends in the business
operations of the tea room in later years.
Highest Ranked "Business Offline" Articles
Why Businesses Need Receivable Factoring In Cash Flow Management
Written by: Toby Seibert |
Distributed: 2007-08-08 |
Word Count: 866 |
Page Views: 1887
| Votes: 5 |
Rating: 4.60
In today's business environment, many businesses need to
fine-tune the process of getting paid on invoices, in order to
improve their cash on hand. Improving cash flow can be an ongoing
challenge for businesses of all sizes, and it is an issue that
must be addressed to ensure the long-term viability of the
business.
Whose Restaurant Can You Find Online?
Written by: Rudy Vener |
Distributed: 2007-07-09 |
Word Count: 640 |
Page Views: 1550
| Votes: 5 |
Rating: 4.40
What is so significant about Pizza Hut's latest TV commercial?
Business School for Non-Business Minds: Got a NAICS Number?
Written by: Melissa Mashtonio |
Distributed: 2008-04-15 |
Word Count: 423 |
Page Views: 1637
| Votes: 5 |
Rating: 4.40
I’m a journalist. I spent a lot of my career in the news
business. As my career has progressed, I’ve spent time at small
and large companies, and I have sat through dozens of business
meetings wondering what the heck the “money” people are talking
about. They used acronyms as if they were a foreign language.
The Problem With Swiping Sales Copy
Written by: Scott Bywater |
Distributed: 2009-12-03 |
Word Count: 480 |
Page Views: 1062
| Votes: 5 |
Rating: 4.40
This is what people miss when they try to simply "swipe"
sales copy from another advertisement.
Equal Opportunity Pizza Ordering
Written by: Rudy Vener |
Distributed: 2007-10-19 |
Word Count: 629 |
Page Views: 1547
| Votes: 8 |
Rating: 4.38
With online ordering, your menu and restaurant suddenly become
accessible to both the deaf and blind customers in your
community.
The Secret To Making Successful Business Connections
Written by: Kate Smalley |
Distributed: 2006-10-11 |
Word Count: 672 |
Page Views: 1661
| Votes: 6 |
Rating: 4.00
If you have a hard time making successful business connections,
don't despair. Anyone can be good at meeting people-if they use
the right technique. The whole secret to making a positive
connection is knowing how to attract people and inspire them to
want to give you a chance.
How to Build a Really Great Business? (Super Success Secrets from a Legendary Business Master)
Written by: Chet Holmes |
Distributed: 2007-01-15 |
Word Count: 1523 |
Page Views: 1648
| Votes: 7 |
Rating: 4.00
Times are tough. The economy is in a constant state of upheaval.
Is your company doing better than most? Are you placing greater
emphasis on pure performance?
Get the Balance Right
Written by: Rich Thawley |
Distributed: 2009-01-28 |
Word Count: 638 |
Page Views: 1499
| Votes: 11 |
Rating: 3.91
Do you build your business around your family or your family
around your business? The choice is yours.
Online Copywriting Makes Content as the King
Written by: Steven Gerber |
Distributed: 2006-12-11 |
Word Count: 560 |
Page Views: 1671
| Votes: 7 |
Rating: 3.86
The inverted pyramid is basically the placing of 4 W's in the
primary sentences of the articles, supported by the other W and H
on the following discussions. Four W's consist of what, when,
where, and who. The other W which stands for why on the other
hand, follows on the succeeding paragraphs, including the
elaboration for the H which also stands for how, if necessary.
Interview Coaching: A Home-Based Business on the Cutting Edge
Written by: Carole Martin |
Distributed: 2007-08-24 |
Word Count: 1400 |
Page Views: 1415
| Votes: 7 |
Rating: 3.86
You name it - Blackberry, Skype Connection, Cell Phone, iPhone -
these are the tools of this trade. Who would believe that someone
with a home-based business could reach out to someone in a far
away country and work with a client via a Blackberry and a cell
phone?
|
|
|
Article Reprint Rights
|

This work is licensed under a
Creative Commons License
You are not required to show the creative commons license notice when you reprint this work.
|
|
Article Statistics
|
Word Count: 767
Total Views: 1757
Views This Month: 31
Views Last Month: 37
Article Rating: 5.00 of 5
Votes Cast: 2
Author Overall Stats:
Times Viewed Overall: 15598
Author Rating: 3.15 of 5
Votes Cast Overall: 46
More Articles By Author:
Articles On This Website
Article Title Search:
Widow Search
Right Blinker
Google
Yahoo!
Zuula
Bing
Cuil
Last Distribution Date:
2007-08-07 10:36:00
|
|
|