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Casual Articles - Do You Qualify for Factoring?
International Scams and the new MethodologySo you've heard about the Nigeria 419 scam, and about the Russian and Philippine brides-to-be scamming American and European men out of thousands. You're street smart, and you're not going to fall for some foolish game. You won't be sending money off to Africa. You wonder, how can anyone be so foolish, to send thousands of dollars off to Ghana, Nigeria, Russia, the Philippines, Colombia or South Africa, to someone they've never even met? All you need is a little common sense, you say. But, is it really that simple to prevent? Does it really take a fool?There are approximately 2 billion Internet users worldwide. Many have just recently discovered the world wide web. Ma
If you have an existing loan or line of credit you need to find out up front if the bank has a UCC-1 against your receivables. The factoring company must have 1st position on your receivables to be able to enter into a financing relationship with your company.
I would suggest if you have a current loan or line of credit to double check and make sure of this.
I have had many businesses tell me that the bank did not have their receivables as collateral and then proceed through the application process and return th
Most individuals choose to incorporate their business in California as it can shield their personal assets. Personal liability protection and tax saving are the major reasons for incorporating in California. The risk of losing your personal assets is high when you have a single proprietorship or partnership. But incorporating in California involves creating a separate legal person for protecting personal assets. As a shareholder, director and/or officer it is possible for you to have control over your own California corporation.Three types of corporations can be formed in California. They are non-profit corporations, profit corporations and foreign corporations. A profit corporation is a legal entity that exists separately
Lets face it, your time is very valuable and you do not need to waste it filling out applications or talking on the phone when you may be able to identify issues in this article that would prohibit you from being able to enter into a factoring relationship.
Some of this information will be basic and you may already be familiar with it, however some may not. Just read through the article and I am sure you will find some helpful information.
Lets take a look at what factoring is:
Factoring is a form of financing where a business sells its creditworthy commercial accounts receivable to a financier known as a factor.
This is a good starting point; you need to be invoicing creditworthy businesses for your product or service. Your product must be delivered and your services rendered (no pre-bills). If they are not creditworthy and you are already having collection problems, a factoring company will not be interested in purchasing those receivables. You may need a collections service.
How much do you invoice each month:
If you are invoicing under $10,000 a month this will limit the number of factoring companies that will enter into a relationship with you. If you are speaking with a factor, let them know up front what your monthly volume is and find out if they are willing to work with companies of your size. This could save you from filling out an application and wasting your time with that particular factor.
How many customers do you invoice:
Factoring companies prefer to fund companies with more than one customer; this helps them lower their risk. If you have just one customer, the factoring will have a concentration issue, meaning if something happens to your customer they do not have any other receivables from other customers to recoup their money. Let the factoring company know this up front as well. Some factors will not work with you if you only have one customer. (If your one customer is large and stable this will help).
Do you have any financing currently in place:
If you have an existing loan or line of credit you need to find out up front if the bank has a UCC-1 against your receivables. The factoring company must have 1st position on your receivables to be able to enter into a financing relationship with your company.
I would suggest if you have a current loan or line of credit to double check and make sure of this.
I have had many businesses tell me that the bank did not have their receivables as collateral and then proceed through the application process and return the
It is a popular verse that all great technological advancements had been a child of necessity. During the 1980s, the world witnessed a revolution in telecommunication that changed the shape of the world. It was public access to the internet or more specifically the birth of E-mail. Since then the technology has never looked back. It has been enhanced with a speed of wild tiger running at the peak of his pace. Technology acquired the attention and changed the lifestyles of everyone from home users to large enterprises. How could the organisations be left uninspired? It was time for business to walk in the digital way.Today, most of the businesses throughout the world have either transformed or are trying to rebuild themselve
Lets take a look at what factoring is:
Factoring is a form of financing where a business sells its creditworthy commercial accounts receivable to a financier known as a factor.
This is a good starting point; you need to be invoicing creditworthy businesses for your product or service. Your product must be delivered and your services rendered (no pre-bills). If they are not creditworthy and you are already having collection problems, a factoring company will not be interested in purchasing those receivables. You may need a collections service.
How much do you invoice each month:
If you are invoicing under $10,000 a month this will limit the number of factoring companies that will enter into a relationship with you. If you are speaking with a factor, let them know up front what your monthly volume is and find out if they are willing to work with companies of your size. This could save you from filling out an application and wasting your time with that particular factor.
How many customers do you invoice:
Factoring companies prefer to fund companies with more than one customer; this helps them lower their risk. If you have just one customer, the factoring will have a concentration issue, meaning if something happens to your customer they do not have any other receivables from other customers to recoup their money. Let the factoring company know this up front as well. Some factors will not work with you if you only have one customer. (If your one customer is large and stable this will help).
Do you have any financing currently in place:
If you have an existing loan or line of credit you need to find out up front if the bank has a UCC-1 against your receivables. The factoring company must have 1st position on your receivables to be able to enter into a financing relationship with your company.
I would suggest if you have a current loan or line of credit to double check and make sure of this.
I have had many businesses tell me that the bank did not have their receivables as collateral and then proceed through the application process and return th
Energy prices continue to rise, but projects to save energy can pay for themselves and put money in your pocket.Did you know? · Energy efficiency improvements provide savings for their entire product life, perhaps up to 20 years, well past the point where the savings have paid for the initial improvement. · Improvements in energy performance and employee comfort can increase income due to improved productivity, perhaps as much as 10 times as high as the energy cost savings produced by performing the upgrade. · Many energy efficiency improvement programs pay for themselves in less than 3 years. · Improved comfort results in improved retention; in retail stores, shoppers stay longer and are more likely to
How much do you invoice each month:
If you are invoicing under $10,000 a month this will limit the number of factoring companies that will enter into a relationship with you. If you are speaking with a factor, let them know up front what your monthly volume is and find out if they are willing to work with companies of your size. This could save you from filling out an application and wasting your time with that particular factor.
How many customers do you invoice:
Factoring companies prefer to fund companies with more than one customer; this helps them lower their risk. If you have just one customer, the factoring will have a concentration issue, meaning if something happens to your customer they do not have any other receivables from other customers to recoup their money. Let the factoring company know this up front as well. Some factors will not work with you if you only have one customer. (If your one customer is large and stable this will help).
Do you have any financing currently in place:
If you have an existing loan or line of credit you need to find out up front if the bank has a UCC-1 against your receivables. The factoring company must have 1st position on your receivables to be able to enter into a financing relationship with your company.
I would suggest if you have a current loan or line of credit to double check and make sure of this.
I have had many businesses tell me that the bank did not have their receivables as collateral and then proceed through the application process and return th
Ever since its introduction in the mid 1900's the laser has come a long way. From light shows to scientific experiments, this optical phenomenon has been used in a variety of avenues. Today, lasers are being used in the manufacture process as cutting equipment.Laser cutting devices direct a high-powered laser beam at the required surface. This makes the surface burn, melt or vaporize, giving the end product a high quality finish. Laser cutting is used on a variety of surfaces such as plastic, glass, metal and so on. Wood is another popular surface for laser cutting.Most laser cutters are powered by CO2. Wood has a high absorption of the 10.6-micron wavelength of CO2. The cutting takes place as a result of a chemical
How many customers do you invoice:
Factoring companies prefer to fund companies with more than one customer; this helps them lower their risk. If you have just one customer, the factoring will have a concentration issue, meaning if something happens to your customer they do not have any other receivables from other customers to recoup their money. Let the factoring company know this up front as well. Some factors will not work with you if you only have one customer. (If your one customer is large and stable this will help).
Do you have any financing currently in place:
If you have an existing loan or line of credit you need to find out up front if the bank has a UCC-1 against your receivables. The factoring company must have 1st position on your receivables to be able to enter into a financing relationship with your company.
I would suggest if you have a current loan or line of credit to double check and make sure of this.
I have had many businesses tell me that the bank did not have their receivables as collateral and then proceed through the application process and return th
In twentieth century America while young boys learned construction with Lincoln Logs, little girls instinctively cuddled a Raggedy Ann. Even today Raggedy Ann’s red yarn hair, patched pinafore and button eyes offer images of another era as she celebrates her 90th birthday in museums and private collections.But in 1958 Barbie was born. All grown up and designed with fantasy. This was no rag doll. Barbie’s hair was real and brush-able; her wardrobe generous and trendy. The ‘Barbie’ figure was to become the ultimate achievement of the perfect body. Playing with Barbie during formative years, young girls have acted out all of their dreams.The new millennium brought new images for females. Lifestyle issues changed the way
If you have an existing loan or line of credit you need to find out up front if the bank has a UCC-1 against your receivables. The factoring company must have 1st position on your receivables to be able to enter into a financing relationship with your company.
I would suggest if you have a current loan or line of credit to double check and make sure of this.
I have had many businesses tell me that the bank did not have their receivables as collateral and then proceed through the application process and return the contract.
The factoring company would begin due diligence and the lien search would return a current UCC-1 on the receivables. Many times the customer does not realize the bank placed a blanket lien on their company covering all assets, including the accounts receivable.
If this is the case, you still may qualify for factoring. If your loan or line of credit is small enough, the factor may be able to pay off your loan or line of credit out of your 1st advance and the bank has no choice but to subordinate (release) the receivables. If not, they may have enough collateral that they will allow the factoring company to have 1st position on the receivables and allow you to get the needed capital for your company.
So if you have current financing, check on this issue. You may find out the bank will step up to the plate and allow you access to more funds when they realize you are about to leave.
This has happened many times.
Also be aware that our factoring companies can help negotiate a subordination, so discuss this with us if you need more clarification on this topic.
Your aging report:
Your aging report is very important to a factoring company; this is the pulse on your cash flow. An accurate detailed accounts receivable aging report should be aged from invoice date and not due date. Some companies accounting software is set up to age the receivables from due date, this will reflect an inaccurate report to the factoring company.
If you have an unhealthy aging report you will have a hard time qualifying for factoring. Plus the fees you pay to a factor increase as the days outstanding increase.
Make sure you have a cash flow issue and not a collections issue.
Remember, creditworthy customers are the key.
Outstanding taxes, liens, judgments, litigations, felony convictions or bankruptcy
If you have any of these issues, it does not mean you can't qualify for factoring, you just need to be forthcoming at the beginning and find out if the issues are too complex for the factoring company to work through. This may save you some time.
Are you incorporated:
Some factors will not work with Sole Proprietors, others will, we have some that do. Find out at the
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