Sat, 2015-09-12 13:23
A lot of people are talking about factoring these days. But if the Internet has taught us anything, it’s that a lot of people don’t know what they’re talking about.    Factoring is often confused with accounts receivable financing, a loan secured by customer invoices – with all of the closing costs and paperwork that implies. With a loan, you pay the money back, plus interest.    A factor pays you – advancing up to 100 percent of the invoice value, upfront – and collects from your customer on the invoice du

A lot of people are talking about factoring these days. But if the Internet has taught us anything, it’s that a lot of people don’t know what they’re talking about.

 

Factoring is often confused with accounts receivable financing, a loan secured by customer invoices – with all of the closing costs and paperwork that implies. With a loan, you pay the money back, plus interest.

 

Mon, 2015-09-07 13:25
Search for the term “factoring” online and you’ll inevitably find an article or two suggesting that factoring is expensive. The question to ask yourself is: compared to what?    If the article tries to compare factoring fees to loan interest rates, you can tell right away that they’re comparing apples to oranges. Factoring is not a loan, it is a sale.    In sales, discounts are a time-honored tradition, with sellers shaving a little off their price to sell more, or meet a specific cash flow target. It is cu

Search for the term “factoring” online and you’ll inevitably find an article or two suggesting that factoring is expensive. The question to ask yourself is: compared to what?

 

If the article tries to compare factoring fees to loan interest rates, you can tell right away that they’re comparing apples to oranges. Factoring is not a loan, it is a sale.

 

Sat, 2015-09-05 13:26
Has this ever happened to you? Your sales team lands you a nice big order. You check inventory and realize you’re going to have to short ship and disappoint a potentially lucrative customer, or crank up the assembly line to meet your delivery deadline.    Business is good, but most of your cash is tied up in orders that have been delivered but are awaiting payment. It’s going to be at least 30 days before you see that money, and you need to get busy now.      You go see your banker, who applauds your succes

Has this ever happened to you? Your sales team lands you a nice big order. You check inventory and realize you’re going to have to short ship and disappoint a potentially lucrative customer, or crank up the assembly line to meet your delivery deadline.

 

Business is good, but most of your cash is tied up in orders that have been delivered but are awaiting payment. It’s going to be at least 30 days before you see that money, and you need to get busy now.

 

 

Wed, 2015-08-26 13:02
I didn’t get into business to chase money, but for awhile it seemed as if that was all I was doing – calling and emailing customers to check on the status of payments. I stalked the mail carrier every day, watching for the truck and racing to the mailbox only to find a whole lot of empty.    Don’t get me wrong. Business was good – I was making more than I ever had working for somebody else. And my customers always paid – eventually. But I had one customer stretch me out over three months to the tune of $21,

I didn’t get into business to chase money, but for awhile it seemed as if that was all I was doing – calling and emailing customers to check on the status of payments. I stalked the mail carrier every day, watching for the truck and racing to the mailbox only to find a whole lot of empty.

Fri, 2015-08-21 12:58
Looking for ways to get customers to pay faster?  You may have heard the expression “2/10, Net 30.” That’s biz-speak for: “Hey, if you’ll pay me in 10 days I’ll knock off two percent – or pay me the full amount in 30 days.”  A lot of big companies offer these kinds of early payment discounts. Studies show, however, that only a fraction of offered discounts are taken. Turns out even big companies like to hang on to their cash as long as possible.  At TBS Capital Funding we’ll take those terms. We’ll pay cash

Looking for ways to get customers to pay faster?

You may have heard the expression “2/10, Net 30.” That’s biz-speak for: “Hey, if you’ll pay me in 10 days I’ll knock off two percent – or pay me the full amount in 30 days.”

Pages

Subscribe to