Below are the 20 most recent journal entries recorded in factoringgroup's InsaneJournal:

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Thursday, August 12th, 2010
11:16 pm	Can Factoring Save Small Enterprises from Closing? The most recent news is the fact that to date, federally backed loans to small enterprises in The southern area of California and throughout the nation are improving as a lot more banks take part in federal lending programs. Stepped-up lending through the Small Business Administration (SBA) is finally on its way when a huge number of small businesses say they are in serious trouble from deficiencies in cash. It raises the question - can a 4,000 year old business practice referred to as invoice factoring help save small enterprises? For most small to medium-sized companies, the assistance arrived too late, so they needed to close. The Bureau of Labor statistics and studies have shown about 4.3 million enterprises with 19 or fewer workers shut down throughout the fourth quarter of 2007 through the 4th quarter of 2008. Approximately 627,200 new employer enterprises started out operations in 2008, while there were about 595,600 firms that shut down. Based on the Small Business Administration (SBA.) By October of 2009, there have been a predicted 90 % of family possessed companies in the United States from classic small businesses to a third of Fortune 500 companies In February of 2009, the government signed the American Recovery and Reinvestment Act of 2009 in an effort to boost the United States economic climate and also to help save countless work opportunities. The Act was an exceptional response to a dilemma and it went down in history as nothing like it ever since the Great Depression. According to the government's SBA and American Recovery Capital Program (ARC), 46,000 total SBA loans, of which 7830 small company ARC loans have been given across the country since inception. Unfortunately, this presents lower than 1 percent of the small business populace. These ARC loans can't go beyond $35,000 and the ARC program is scheduled to end September 30, 2010 or when allocated funds shall no longer be available. Recipients is able to get one ARC loan. To put it succinctly, loans are restricted and the plan is due to end in the near future, after that exactly what takes place? We have a very long path to take for restoration and lots of businesses are still not able to be entitled to SBA and ARC lending. Factoring offers both a quick term and longer term means to fix small company. It's speedy and effective and in contrast to a loan, it does not seem on the balance sheet. It's a "make use of it when you'll need it" service and certainly won't expire. Invoice factoring is simply a "make use of it when you need it" funding choice, thus each and every invoice purchase is a separate financial transaction and does not form part of a portfolio loaning approach. The transaction is modeled as a buy-sell deal. Actions involve: * Due Diligence - As soon as approached by a possible customer, IFG undertakes a comprehensive due diligence program that typically can take about 24 to 48 hours. * Evaluate Invoices - When the due diligence is finished, the customer is at liberty to supply invoices to IFG for sale. * Credit history Confirmation - Upon receipt of the invoices, IFG will check the credit of the borrower branded on every invoice and ensure the sale represented by each invoice has been satisfactorily carried out. * Debtors' Notification - Once credit has been confirmed, each debtor is informed of the buy by IFG along with the client is compensated for the invoices. * Debtor Payments - By the end of the credit time period the debtor is likely to make payment directly to the factoring company therefore completing the transaction. (1 Comment |Comment on this)
10:15 pm	Accounts Receivable Factoring - New Legislation Tries to Support Small Businesses in the US Widely regarded as the primary generator of net new work in the United States, small enterprises are generally a source of financial vitality, but with the downturn in the economy, small enterprises are failing, prompting the government to try and do something to get them back. The newest laws consists of a whole new bill small enterprise bill under consideration within the U.S. Senate referred to as the Small Business Job bill, there could be a number of short-lived as well as long-lasting changes to loan program innovations, tax relief procedures and also other federal programs. Numerous small enterprises are surviving by way of alternative funding techniques for instance accounts receivable factoring, so there's a lot of emphasis to supporting small businesses get back on their feet. A highly regarded news item, the newest bill would likely enable self-employed business owners to deduct their family medical health insurance expenditures from their self-employment tax earnings this year. Businesses with less than $50 million in gross invoices could bring back standard business credits to counteract tax liabilities for five years. Currently it is only 1 year; and first-year write-offs might briefly improve for business gear from $250,000 to $500,000 and also increase the limit on qualified expenses which activates a phase-out on the inducement from $800,000 to $2 million. The most up-to-date version of the Small Business job bill temporarily raises the capital gains exclusion with regard to stock that was issued by many small businesses to 100 %. This would be from the period the bill is ratified until the conclusion of the year, with a gain that is limited to ten (10) times the original expense or $10 million. If your small business changes from a C to an S business, it will have to retain its assets for at least 10 years otherwise shell out a 35 % tax on the built-in benefits which transpired prior to the business making the conversion. The government's new bill would lower the time scale to five years on an asset sold in the tax year 2011. Despite the fact that these provisions expire after the year 2011, this bill could expand Section 179 to include several real property upgrades. A large 50 percent year one decrease in market value is targeted for many kinds of properties included in the bill, that also boasts a growth on the reduction for start-up expenditures from $5,000 up to $10,000 for the year 2010, It could boost the cap on expenditures that invokes the phase-out on the deduction from $50,000 up to $60,000 - all rewards to smaller businesses. Ultimately, in case you forget to report on a tax return or even a financial transaction you receive a fee that's established at 75 percent of the tax gain and capped at $200,000 for corporations and $100,000 for individuals. An even more thorough summary of the bill plus the legal wording are posted at the Senate Finance Committee Site. These kinds of laws, in the event the bill is handed, will still take a while to execute, with there being quite a few businesses that are nevertheless struggling. At the same time, accounts receivable factoring is really a secure, profitable and great alternate method of financing for small to medium-sized companies, to satisfy payroll costs, expenditures and make it through till such time as the new Small Business Jobs bill is executed, and even before the economy is healed. After all, accounts receivable factoring has existed supporting small enterprises survive for more than 4,000 years. (Comment on this)
Thursday, January 28th, 2010
12:37 am	How Accounts Receivable Factoring Works to Enhance Cash Flow Many companies face cash flow problems during the startup phase, particularly in today's economic state. Others, on the other hand, have issues with cash so they can't grow their business. Improving your cash flow in the year 2010 should be a main concern, as well as collection efforts or even obtaining professional assistance with financial forecasting. However, there is one tactic that works every time: accounts receivable factoring. Factoring can help when all other options fall short. For any organization strapped in cash, selling accounts receivables or invoices to advance funds is a sound and reasonable tactic. After all, why wait for sixty or ninety days, when if you had the money now, you could turn out more orders, purchase much needed supplies, and in general, keep the business running. Factoring comes with a price, but in the growth phases of a small business, it is better than a loan. Factoring companies, as in any commercial financial institution, charges a fee for its services. Here is how accounts receivable factoring works: first, the factor, such as The Interface Financial Group (IFG) will want to examine your invoices and also check the creditworthiness of your customers. You should be prepared to show the following papers: - A current financial statement; An accounts receivable aging report; A certificate of incorporation or partnership agreement; - Proof of insurance, invoices and other business documents. Because it is the factoring companies that will take on the responsibility of collecting the receivables, they want to protect themselves and ascertain that the invoices will be paid on a timely fashion. Once you know which invoices the factor will purchase, the factor will typically pay you in as little as 24 to 48 hours. The factor may pay you 80% of the total amount of your invoices now, and then give you the remaining balance as soon as the customers pay their invoices. Fees shall be collected from you, of course. Typically, you will pay anywhere from 3 percent to 7 percent or more of the total the factor collects. Charges shall of course vary, depending on the value of the invoices, the creditworthiness of the customers, and the number of days in your cycle, among others. Accounts receivable factoring is not for everyone. First of all, it's limited to B2B companies. Second, interest rates are almost always higher than those imposed by standard bank loans. But because factored invoices are just only at most a 90-day engagement, then the total interest paid shall come out to be lesser than the longer term of a bank loan. (Comment on this)
Wednesday, January 27th, 2010
9:01 pm	Factoring vs. Business Loan Today, several small business owners are continuously looking for new methods of enhancing their cash flow - given the current state of the economy. Before, they usually thought about going to a bank first, but unfortunately the reality is that with today's tight credit market, this approach isn't very successful. Truth is, many new businesses find it hard to get a loan. You may have heard that Bank of America recently extended more than $12 billion in credit to small businesses, and they consider a small business to be one with revenues that reach up to $20 million. But the reality is that many small businesses don't qualify. However, invoice factoring, also known as accounts receivable funding, is rarely thought of when someone requires cash flow or working capital for their business. Why is this so? The answer is simple: most people immediately think of a bank when they seek financial aid. Because accounts receivable factoring isn't a typical "bank product," then many business owners would find this as a confusing concept. Usually, a business owner seeks for working capital, which is also referred to as a line of credit, or credit line. And based on pledged collateral assets, your limits would depend on them in traditional funding strategies. Moreover, small business loans do offer a benefit because it is basically a lump sum for immediate investment and business loans help bridge financial gaps. It would be very fortunate of you if you can immediately obtain one. These days, on the other hand, this is a very difficult feat. This is where small business factoring can help you - by providing you steady and reliable cash flow. By selling your invoices, or factoring the invoices in return for an advance of funds, it will cost up to a percentage of the invoice value. Benefits of factoring over standard small business loans or overdrafts include the following points: You get easy access to funds. In business loans, you have to wait days before the amount will appear in your bank account. A factoring company provides funds within 24 hours of invoices being issued. If you take out a small business loan, you're only allowed to borrow a fixed amount, and when you reach that limit, you will then need to renegotiate with your lender. Business owners who utilize invoice factoring recognize the flexibility of the financial option - as their sales grow, so will your business too. Borrowing against your invoices using factoring offers a flexible approach, and in turn, you can focus on generating more sales rather than making payments. Now, if you have considered this method over other financial alternatives (like business loans, overdrafts), know that first and foremost, the factor company shall take a minimal percentage out of its value. Extra fees may be incurred if you decide to outsource credit management. It's still important to take out credit protection - even if the factor company will fund your invoices, you'll still be liable for bad debts should the payees not pay. Borrowing money to finance your business through its different growth phases as well as the economic forces can be achieved in a lot of manners, but invoice factoring is becoming more famous, because it is an easy way to swiftly measure the return on investment (ROI). Also, there are no loans to pay back. (Comment on this)
3:04 pm	How Invoice Factoring Helps Small Business Owners Recently, a poll asked successful entrepreneurs as to the elements that influence the success or failure of a new business. The 549 founders of various companies came from all industries, such as computing, electronics, aerospace and health care. The top most critical success factors included learning from their mistakes and their successes, previous work experience, a strong management team and good luck. 98% said prior work experience was an essential factor as well. And surprisingly, a few mentioned a tactic known as invoice factoring. Some of the usual questions on the government's Small Business Administration (SBA) website are: How do I get a small business loan ... or grant? What is the finest way to launch a business? What are some tried-and-tested tactics that can help me attract investors for my business? What type of interest rate, terms or charges does the SBA require on its Guarantee Loan program? Discussed below are several of the tried-and-tested financial aids for business growth - especially for small business entrepreneurs who are targeting at making it big in 2010. First and basic of all, don't waste money. By making use of good financial options, you can stick to the plan to help reduce operating expenses. Be mindful of your expenses, make sure that you are not paying double for anything. Analyze the year in quarters, then set aside time each quarter to evaluate your expenses. You will most certainly find areas to cut back. Do you lease or rent a company car? Did you know that a company vehicle is best purchased because they can be depreciated on your organization's tax returns. In this sense, you will get a higher return on investment when this vehicle is paid off instead of when you lease it. It is another story when it comes to company computers: leasing them is a better alternative since it can be treated as a tax deduction and later on, you can exchange them for newer technology. Another great financial strategy is to use invoice factoring for your outstanding invoices. Rather than letting invoices that will not get paid in 60 or 90 days remain idle, why not make use of them? But if you find a factoring company to factor one or more of your outstanding invoices, you can use the money wisely to invest in your business and make it grow faster. Several factors today do what is called "single invoice factoring" where they will spot one invoice at a time. If you are in a hurry for some cash, you can try accounts receivable factoring; it can give you your needed cash in fast as 24-48 hours after your invoices are being reviewed and your vendors are pre-qualified. Bear in mind that your credit isn't checked, but the vendor that owes you the money will be pre-qualified by the factor. Factoring companies, just like a bank or any commercial financial institution, charges a fee for its services. First, the factor will want to review your invoices and check the creditworthiness of your customers. You should be prepared to show the factor the following: 1) A current financial statement; 2) An accounts receivable aging report; 3) A certificate of incorporation or partnership agreement; 4) Proof of insurance; and 5) Invoices and other business documents. A factor will take charge of collecting your receivables, so they will want to make sure your customers pay their invoices on time. Once you have selected which invoices the factor will buy, they'll typically pay you an advance; for instance, the factor might pay you 80% of the total amount of your invoices and then reimburse you the other 20 percent once your customers pay the invoices. Factors get anywhere from 3 percent to 7 percent or more of the total they collect. The variation of the fees collected depends on many factors, size of invoices, creditworthiness of the customers, number of days until the invoice is due (30/60/90), to name a few. For more information about invoice factoring, visit www.ifgnetwork.com. (1 Comment |Comment on this)
Tuesday, December 22nd, 2009
1:36 pm	Factoring: A Great Support to the Construction Industry The tightening of the credit market has been difficult on several businesses, specifically the construction industry which is responsible for building our nation's houses, corporate facilities, factories, apartments, offices, schools, roads as well as bridges. It is expected then that long into the New Year, contractors shall still experience a few cash flow problems associated with meeting payroll and purchasing supplies, for example. The industry is divided into three basic areas: building (to take care of residential, industrial, and commercial buildings); civil engineering construction (to take care of roads, bridges, highways and tunnels); specialty trade contractors (to work on special projects like carpentry, painting, plumbing and electrical works.) These responsibilities are not just about new structures, but often need site preparation, repairs, maintenance, or improvements on old projects. The industry supports architects, engineers, inspectors, appraisers, brick masons, carpenters, electrical and drywall contractors, flooring and tile contractors, and even asphalt firms, all of which could benefit from invoice factoring to help them get through these difficult economic times. it's the general contractors - normally specializing in either residential or commercial building - who take care of the large chunk of the construction jobs. They're in charge of the whole job, and although general contractors may do a portion of the work with their own crews, they usually subcontract work to specialty trade contractors who typically do the work of only one. These get orders for their work from general contractors, architects, or property owners. Repair work is almost always done via direct order from owners, occupants, architects, or rental agents. Since the construction industry is very much reliant on economic business cycles, it's easily affected by changes in interest rates as well tax laws. For example, a small modification in state or local regulations could lead to a cancellation of a job or a construction of a new site. There's been an increase in factoring among contractors during the previous year, and it's helping to provide the cash flow required to pay suppliers, meet payroll and pay for insurance, even workman's compensation. Construction factoring allows businesses to obtain funds based on their current accounts receivables, so they can go ahead with the next phase of a project, instead of wait till the invoices are paid. Truly, invoice factoring is very useful to this kind of industry. Why so? Because when factoring is utilized, the sub-contractor, or construction company, does not have to wait for payment before starting on the next stage of a project, or begin construction on a new project. Indeed, construction companies are provided with a quick turnaround - usually 24 to 48 hours - on their accounts receivables. With construction invoice factoring, the construction company, or the sub-contractor, can be paid immediately for accounts receivable invoices, which speeds up cash flow and improves the company's ability to start immediately on the next phase of construction for each project. (Comment on this)
Monday, December 21st, 2009
11:28 pm	Invoice Factoring and the New Year Several small businesses had to stop spending last year sometime this time of year. But today, signs suggest that the recession is almost over and small businesses can get on with their normal "lives." As such, there is no better time than today to consider how the recession has affected your business. But go beyond your business - think about the the effect of the recession on your industry in general. Has your customer base changed? Or is it that your competitors have reduced their prices? Are there new services being offered? Are you still on track? Indeed, recession causes a lot of changes in your business - so it's high time that you give yours a major assessment this time. If you have gone through hell and back - laying off people, reducing salaries - just to survive, then you may want to keep in mind these things considering that the business outlook is getting brighter. Firstly, consider the fact that many companies are getting people again - this means that you can get new people from businesses that have went down the drain. But bear in mind that the same people may get a better offer elsewhere too. It's important to satisfy them, or else, risk losing them to your rivals. At this time, acknowledge the fact that most people are looking for money - just to pay off the bills incurred during last year's trying times. Of course, be practical on how you spend your money. This is particularly true now that business is picking up again. Priorities might include new computers, instead of redecorating. Address long-term debts as well as short-term debts. Many businesses have learned how to utilize invoice factoring to stay afloat during the recession. This strategy would be well suited after the New Year. It's a great way to pay down your debt, while keeping cash flow efficient. What's more, there's a popular new factoring strategy called spot factoring. This is the case of factoring once invoice one at a time. Bear in mind that spot factoring, unlike a loan, is the purchase of financial assets like receivables. Traditional bank loans involve two parties, while invoice factoring involves three parties. Another difference of these two financial options lies on the fact that in factoring, decision is based on the face value of the receivables, while in bank loans, it's based on the person's creditworthiness. Lastly, this seemingly heaven-sent factoring requires no minimums, maximums and long-term commitments. Single invoice factoring can help your small business get back on its feet. Typically, businesses do not get immediately paid for products/services delivered. This negatively impacts cash flow and can make it hard for the business to generate new orders in a timely fashion. With invoice factoring, on the other hand, businesses that do not get paid for 30, 60 or 90 days will have access to immediate cash - of up to 90% of the invoice total. Invoicing companies, like IFG, simply looks at the client's customers - and if they're worthy enough, IFG can grant funding within 24 hours. (Comment on this)
Monday, November 30th, 2009
9:12 pm	Construction Business Factoring Resurges during a Challenging Economy Construction business factoring has been used in the construction industry for a long time now and trends have demonstrated that the usage of such a financial alternative is on the rise. The recent economic downturn and tightening of the credit markets has been especially difficult on the construction industry. It is shown that changes in the building code standards and cash flow problems have been crippling small-time contractors. Because the availability of commercial financing has been messy for the past year, this situation is especially evident when seeking construction funding for commercial property. Recently, there has been a boost in construction factoring among contractors, which provides the much needed cash flow to pay suppliers and make payroll. With factoring, businesses are able to acquire cash based on their current accounts receivables. The usual case is that subcontractors have to wait for 30 - 60 days before they will have available cash from their invoices. Construction factoring advances cash against invoices and provides enough money to pay the bills when things are not that easy. The granting of commercial loans has become considerably stricter. For several reasons, this has resulted in even more of an apparent shortage of business financing for construction of new commercial property. And even before commercial finance options have gotten into this restrictive stage, construction business factoring is typically perceived as a risky move. The most significant risk factors for commercial construction finance normally include the following: Potential contractor liens are an added risk not present in commercial financing for existing commercial properties. Several construction projects go beyond initial cost estimates and/or take more time to complete than originally anticipated. Between the two facts noted above, the risk of potential contractor liens is a special lending concern in the current funding climate for commercial lenders due to the deteriorated state of the construction industry. And due to the potential for contractor liens incurred in residential projects, the current problems in residential construction have indirectly affected the availability of commercial properties funding - it's thereby a vicious cycle. The real estate mantra in this scenario is quite fitting: "Location, Location, Location." The main point in emphasizing location is to illustrate that the use of non-local funding sources can be a viable solution to consider for commercial financing involving both existing properties and new construction. Local commercial lenders, in a few areas of the country, have ceased giving out new business financing and construction financing. In the negative business borrowing climate that we're experiencing today, it is essential more than ever for small business owners to seek out an invoice factoring company which can discuss the feasibility of obtaining funding help outside of the local lending area. Contractors and related small businesses alike can benefit from single invoice, or spot factoring, stay afloat, and in most cases, grow when using smart financing options. For more information about business factoring, contact The Interface Financial Group (IFG) at 877.210.9748. (Comment on this)
12:36 pm	Economic Convalescence Helps Small Business Factoring Companies To outlast the ongoing economy, both big businesses as well as small business have been struggling to survive. However, the resources of bigger commercial enterprises are not well available to little entrepreneurs. During 2009, this is the reason wherefore so some small businesses have gone out of business. But the good news is that the actual economic recovery in progress will actually aid many little business enterprises, including small business factoring. While a lot of smaller business organizations have either modified their model, introduced new wares or services, or have contributed merchandises, others have been driven to close. Typically during a recession and is true for all industries, it is the marginal businesses that do not survive. It is this kind of "cleansing" that closes some doors, but opens up doors for other new commercial enterprises that start up after economic recuperation. As the existing business enterprises grow, the will need funding that can not be incurred through traditional financing such as banks, credit unions or other asset based lenders, so it is actually development that produces a chance for many small businesses. Also, getting limited assets, the starting new commercial enterprises likewise require small business factoring services. How are these small business enterprises assisted by small business factoring? As follows, maybe indeed you need to know some new terms: Asset liquidity -- this is the ability of a business to exchange assets into hard currency. Available funding is really important in entrepreneurial processes as it is an important part of any small businesses. Permitting business owners to meet their responsibilities and to remain in business is called hard cash and liquidity. Good cash flow is important to the endurance of any small enterprise. In the kind of cash, asset bring value to your company, no matter what way you look at it or what you call it. However, your stock, tools, provisions, machines, even your edifice, they're all assets. An responsibility or outflow of money, the opposite of an asset, is called a financial obligation. Liabilities are the loans that you are making payments on or some other indebtednesses that costs money. To be able to the price of the liability, you most probably will need to change assets into cash. Liquidity - this is when you turn an asset into cash. It also shows the degree that an asset can be exchanged in a business transaction without losing value. Cash is the most liquid asset. Your inventory is different asset that can be changed into cash. Bills are also assets, but not as available. Turning accounts into hard currency while waiting for their payment can be done via small business factoring. Seeing at your customers' credit (not yours) and paying you the bulk of what's owed to you within as little as 24 to 48 hours is done by a factoring company. Give a small business factoring company a chance as a new commercial enterprise strategy for profitableness. (Comment on this)
2:03 am	Settle Tax Debts with Accounts Receivables Factoring If you're a small business owner and you found out that you need to settle taxes this year, but are short on the cash to pay your debts, you might be able to utilize receivables factoring to settle your tax debt. A peace of mind solution, factoring can assist you avoid large tax debts, and late filing penalty charges. Small business owners can take heed of these insightful tax tips. Maintain funds separate - Sole owners, most especially, must learn to separate money for business and personal expenses. Why? Because during tax time, by dividing your expenses, you will realize that it's much easier to trace your expenses. It's even a bright thought to have a different business phone - so you can properly allocate deductions for business calls. Are you aware that your business cards, domain name, website hosting, advertising, and other office provisions are deductable? What's more, 50% of your business-related food as well as amusement expenses can also be declared in your tax reports. It's also essential to use your debit card and checks when paying for the expenses of your business. Refrain from withdrawing cash. And those people who are paying a a retirement plan can take those expenses. The same holds true for your health insurance expenses. Vehicle expenses, like gasoline, oil, parking and toll expenses, can also be declared. You have the choice to take the actual expense deduction or the standard mileage deduction; but in either case, parking cost is always allowable. Or, instead of recording mileage, be sure you use a mapping site such as Mapquest.com to calculate the mileage just to and from business-related addresses. And if you maintain a home office, you may deduct that percentage of space and a percentage of home expenses, including utilities. Of course, bear in mind that accounts receivables factoring companies can assist you get that peace of mind by buying your credit-worthy invoices and turning them into quick cash. E-filing your taxes is the easier and more accurate means. Many tax preparation programs come with mechanisms that are able to mechanically check for errors. This is essential in maintaining your tax reports accurate and up-to-date. A taxpayer normally files a state tax return simultaneously when they electronically file their federal return. Once the return is accepted for processing, the IRS electronically acknowledges receipt of the return. If you file electronically, your refund shall be issued in about half the time it would take compared to filing a return by paper and mail. When it comes to your IRS and tax inquiries, check out the small business and Self-Employed Tax Center at www.irs.gov. And for further information on invoice or receivables factoring, getting in touch with the Interface Financial Group (IFG) at 877.210.9748 would do the trick. (Comment on this)
Sunday, November 29th, 2009
8:25 pm	Accounts Receivable Financing - The Better Alternative out of this Economic Mess At present, small businesses do not have to suffer from their own triumphs. Factoring services are also known as accounts receivable factoring, and no matter what you decide to call it, these services can provide many small businesses with their own bailout plan to get through these difficult times. Many businesses that are undergoing what the government refers to as "immediate hardship" can apply for loans of up to $35,000 through the Small Business Administration's America's Recovery Capital (ARC) program, as part of President Obama's bailout strategy. The terms include no payments for the first year, and no interest, however not everyone qualifies for ARC. With accounts receivable factoring or financing, however, small businesses are provided with short-term working capital by turning their accounts receivables into immediate cash. This is definitely helpful for those who are experiencing hardships due to the economic situation - barely making payroll, paying new supplies. The "birth pains" are truly challenging for small businesses who're in the heavy growth phases. In most cases, small businesses don't get paid for delivered products until after 30, 60, or 90 days. Accounts receivable financing helps businesses that don't get paid by advancing up to 90% against invoices. A factoring company looks at the creditworthiness of the client's customers and can fund within as little as 1 day. The company doesn't expect to buy 100 percent of a company's receivables, and there are no minimum or maximum sales volume requisites. Accounts receivable factoring has become a truly efficient cash management tactic, especially in the construction industry and for sub-contractors who usually experience cash flow problems: meeting payroll, buying supplies, paying benefits and Workers Compensation. With factoring, small business owners can expect to have their receivables turned into immediate cash. What separates invoice factoring from bank loans as well as SBA-backed ARC loans is the fact that the former requires 3 parties, and the latter, 2. Also, factoring companies base their decision on the value of the receivables; banks, on the client's creditworthiness. Factoring is not a loan - it is the acquisition of a financial asset, or the receivable. Factoring companies normally check the creditworthiness of a client's customers and pays within as little as twenty-four hours. There are no minimum/maximum sales volume requirements and they do not expect to buy 100% of the company's receivables. Rates are also competitive - and are highly dependent on the client's special circumstances. The clients also have the liberty to choose which invoices are to be sold - in a way, they have larger control of their money. Standard accounts receivable financing has been around for over 4,000 years. The process starts with the exercise of due diligence - normally taking 1-2 business days. Once this is accomplished, IFG gives the client the freedom to select which invoices to sell. Then, the credit of the debtor on the invoice is checked to ensure that the sale represented is satisfactorily carried out. The debtor is then advised that their invoices have been bought and the client then gets funding from the IFG. At the end of the credit cycle, the debtor completes the transaction by paying the factoring company directly. Overall, the difference is that if a small entrepreneur gets involved with a government ARC loan, the money have to be paid back at some point. Whereas accounts receivable financing is a business strategy that can prevent them from ever having to get a loan, because invoice factoring provides short-term working capital on a per need basis. Learn more about accounts receivable factoring by calling the Interface Financial Group (IFG) at 877.210.9748. (Comment on this)
1:50 pm	Accounts Receivable Factoring and Health Care Research released in 2009 U.S. Public Interest Group (USPIRG) revealed that 17 percent of small businesses currently do not offer health coverage because of the red tape and high costs. Successful health reform could yield some serious benefits for small businesses in the United States. The research also stated that 78% of those small businesses who do not offer health coverage would like to offer it to employees. With accounts receivable factoring, on the other hand, small businesses are assisted in their aim of addressing health care costs because their invoices can be translated into immediate cash. Here's how accounts receivable financing could help small business owners with being able to afford health care coverage for their employees. Normally, small businesses do not get paid until 30, 60, 90 days; however, if they can convert these invoices into immediate cash through invoice factoring, then these can cover for health care costs. The research also showed that small business owners who do make the sacrifices necessary to provide health care think that it's a smart business strategy to enhance employee productivity. Since factors don't expect to buy 100% of a company's receivables, single invoice factoring, or accounts receivable factoring, is rising in popularity. Accounts receivable financing benefits businesses that do not get paid for 30 to 60 or 90 days by advancing a maximum of 90 percent against invoices. Of course, it's a must for the factoring company to evaluate the creditworthiness of the client's customers. When no issues arise, then funding can be granted in as little time as twenty-four hours - plus commission fee. In relation to the recent economic downturn, invoice factoring has become a highly effective cash management tool today. In this type of situation, it's typically small businesses that take the blow - barely making payroll, buying new supplies and paying employee benefits. With this kind of financing, they're given access to funds that are coming in but aren't yet available. Factoring is not the same as a traditional bank loan. Rather, it's the purchase of financial assets, or accounts receivables. In addition, factoring involves three parties, while banks has two. Factoring companies evaluate the value of the receivables while banks evaluate the company's creditworthiness. Several factors' professional rates are competitive because each client's circumstances vary, which may have an impact on the fees. Accounts receivable factoring is a 4,000-year-old concept. For more information, call The Interface Financial Group (IFG) at 877.210.9748. (Comment on this)
3:15 am	Commercial Factoring and Credit Repair During Difficult Economic Times Statistics show that in the United States alone, there are more than 30 million people with bad credit scores (i.e., under 620), thereby making it difficult for them to obtain both personal and business loans with decent terms. And this piece of bad news is made worse with the current state of the economy. But what many folks don't realize is that fixing their credit might be as simple as something called commercial factoring. Small business entrepreneurs seeking better credit need to fix their problem, thus you need to first face your real credit score, and despite free credit report offers, you still have to pay to find out your score, which is a 3-digit number ranging from 300 to 850. There are several organizations who will offer free credit report but still, you must pay to get your TRUE credit score. Once again, it is a number somewhere between 300 and 850. You can get Experian's "consumer education" credit report, or here's exactly how to find out the real details of your personal credit score: Order your credit report - go to MyFico.com, or order Experian's "consumer education" credit report. Use credit cards sparingly - big balances can hurt your score, even if you pay your bill in full each month because what gets reported to the credit bureaus is the balance reported on your last statement. Clean your credit cards - the credit-scoring system is based on favorability towards a gap between the amount of credit you are utilizing and your available credit limits. Use alternate credit cards - the older the history per card, so much the better. Stop making use of a card and the issuers may cease updating that account at the credit bureaus, and it won't be given as much weight in the credit-scoring formula as the active cards. Watch your credit limits carefully - charging the same amount each month and it looks like you're regularly maxing out the credit card. Pay your dues at the end of each statement period. Know that by making use of single invoice commercial factoring, you get to pay off your balance from your credit cards. Once you have your credit score in hand, following are some tips towards credit repair: 1) Make use of your credit cards sparingly Bear in mind that it's always a not a good sign to have big balances - whether or not you pay it all off every month. 2) Refrain from hiring individuals who promise to clean out your credit score. The Federal Trade Commission (FTC) believes that things like these are more likely to be a scam. Lawyers at the nation's consumer protection agency hold that they've never seen a legitimate credit repair operation making claims. 3) There is no easy fix for creditworthiness. It takes time to legally restore your creditworthiness. For example, sticking to a debt repayment plan will make you achieve your objectives of cleaning your record. 4) Be aware that what is reported to credit bureaus and what's included in the computation of your credit score is the balance from your last statement. 5) Pay off or pay down your credit card debt. The credit-scoring system is based on favorability towards a gap between the amount of credit you are using and the available credit and its limit. 6) Rotate credit cards. The older your credit history per card, the better, so if you stop using a card, the issuers may stop updating the account at the credit bureaus, and it will not be given as much weight in the credit-scoring formula. Active accounts hold more weight. 7) Keep abreast of your credit limits. Do not charge the same amount every month as credit bureaus would perceive this that you are regularly maxing out your card. Any wise man would pay off the whole balance in the card, prior to the end of each statement period. 8) Invoice factoring can help you pay off credit your card debt. With this, you will be provided with immediate cash flow. Regaining popularity as a failsafe means of financing to improve the cash flow of a business, invoice factoring can be used when an organization decides to discount its accounts receivables, at which time the factor then bears the credit risk for the accounts and becomes the recipient of payments from customers. It's by far one of the most effective forms of helping out small businesses in terms of short-term capital requisites. Contact the Interface Financial Group (IFG) at 877.210.9748 to learn more about commercial factoring. (Comment on this)
12:16 am	Of Staffing and Commercial Factoring The United States Treasury Secretary stated that the US economy is showing signs of a recovery. Many people are betting that staffing agencies will observe a surge in the business. Why? Because most organizations will be reluctant to add full time employees until the recovery is well underway. Hiring a staffing agency to provide temporary employees will help companies ramp up without fully committing. With this increase in the demand for staffing agencies shall we see an increased need for commercial factoring as well. While staffing companies have to pay their employees weekly or bi-weekly, available cash usually turns out after 30 days still. Temporary staffing is one of the more reliable industries to factor, the work has been accomplished and you have concrete proof in the form of signed time sheets. These leads need more aggressive follow-ups though. Indeed, invoice factoring is a viable solution for agencies who have good contacts and prospects but are a bit problematic on the financial side. Today, several business owners are rethinking their operating strategies - about maximizing the use of their invoices to stay afloat. The normal case is that companies do not get immediately paid in cash - but cash is something that businesses should always have. That's where commercial factoring can help businesses like contractors, and especially those who do not get paid for 30, 60 or sometimes as long as in 90 days. No matter what the business, doing business can be time-consuming, and many entrepreneurs find that they get so busy running their business that they forget to bill their clients regularly. Otherwise, the business would be on a financial comatose. To further understand the concept of commercial factoring, contact the Interface Financial Group (IFG) at 877.210.9748. (Comment on this)
Saturday, November 28th, 2009
1:59 pm	Invoice Factoring's Definition and History Simply put, invoice factoring involves three conditions: (1) the sale of a company's receivables, invoices or assets at a discounted price (2) to a factoring company (3) who shall receive direct payment from the client's customers. The beginning of factoring can be traced way back 4,000 years ago - when commerce began. More specifically, it was first used in the day of King Hammurabi of Mesopotamia, also known as the "cradle of civilization" in history books. History books tells us that it was the people from Mesopotamia who were the first ones to develop writing and who structured business codes. But the notion of selling promissory notes at a discounted price - another form of factoring - began with the Romans. Then, before the revolution, the very first instance of factoring happened in America - when animal furs, cotton, and timber where shipped from the colonies to Europe. Merchant bankers in London advanced cash to the colonists so that the Americans could continue to harvest their new land. As such, the Americans were able to continue their work because advances were made against the accounts receivables of their clients. Soon enough, during the Industrial Revolution, factoring became centered on credit - creditworthiness was measured and credit limits were set. Only the factor that could ensure payments for customers are approved - and this speeds up the whole transaction. Invoice factoring services can be a beneficial resource tool for business owners throughout the world, particularly during a trying economy. For what reason For one, obtaining a loan from financial institutions is a bit difficult and it takes quite a while to be approved. Invoice factoring services from factoring companies provide short-term working capital to booming businesses who often find it hard to get conventional funding. Because a lot of the companies do not get paid immediately after they have delivered a product or a service, it can negatively impact their cash flow, making it difficult for the business to produce new orders. After all, to be able to continue making new products, supplies need to be always on hand. Invoice factoring can benefit a business that doesn't get paid for 30, 60 or 90 days. In what manner? Factors advance up to 90% of the total invoice, and they can often provide funding in as little as 24 hours. Keep in mind, factoring isn't a loan - it's the purchase of receivables otherwise known as financial assets, from a factoring company. Factoring is different from traditional bank loans because bank loans typically involve 2 parties, while factoring involves 3 parties. A bank bases its decisions on the creditworthiness of the company. On the other hand, factoring companies look at the value of the client's receivables to come up with a decision. There are no minimums, no maximums, no long-term commitments and no lengthy application processes when availing of the services of an invoice factoring company. Make spot factoring, a newer form of invoice factoring, part of your business growth strategy today. (Comment on this)
Friday, November 27th, 2009
11:29 pm	Invoice Factoring: To Cover the Payment of Insurance Premiums An intelligent way to get ready for unexpected events is to get an insurance - and this shall apply with small businesses. You should think about properly protecting yourself in case of bad things that could happen, like the death of a partner or employee, a lawsuit, or a natural disaster. If you are a small business that needs insurance protection, but can't afford it right now, then think about how invoice factoring for small business could help provide that needed cash every month to cover your payments. Insurance is available for nearly any business risk that you can think of, from worker's compensation insurance to home-based business insurance. It is always essential to know and justify the cost of the insurance payments. Worker's compensation insurance is the one that covers an employee's medical expenses and salaries in instances when he/she misses work due to an injury while on the job. Also, in this type of insurance, the amount of insurance that employers must carry, the payment itself and the type of employees eligible for this shall vary according to the state that you're in. It is popular for business owners to buy general liability or umbrella liability insurance. This shall address legal negligence issues thereby protecting your from bodily injury and property damage, medical expenses, settlement bonds and lawsuits. Since manufacturing companies are liable for product safety, they've a lot to worry about when it comes to the coverage of their insurance. In addition, services rendered in relation to the product may lead to personal injury, property damage, negligence and breach of an implied or express warranty. A lot of home business owners don't realize that homeowners' insurance policies do not usually cover home-based business losses. This includes professional liability, personal and advertising injury, business data loss, crime or theft, disability and property. Furthermore, Web-based businesses usually require special insurance that covers liability for damage that might be done by computer viruses or hackers. The usual coverage of E-insurance includes lawsuits arising from electronic copy infringement as well as banner advertising. You also might want to acquire insurance that covers losses during fires, natural disasters, or other catastrophes that may cause the operation to shut down for a significant time. If you are a small business that requires insurance protection, but cannot afford it right now, then think about how invoice factoring for small business could help provide that needed cash every month to cover your payments. Invoice factoring for small business has been around for over 4,000 years. Factoring is a particularly fast way to turn your receivables into cash. This then takes away the need to wait for 30, 60 or 90 days before invoices are turned into cash. And presently, spot factoring services permits you to get cash from one invoice at a time. For more details about invoice factoring, contact The Interface Financial Group (IFG) through 877.210.9748. (Comment on this)
10:10 am	How Small Businesses can Take Advantage of Invoice Factoring The economic condition these days proved to be very tough for small business owners; as such, creative solutions must be obtained. In order to sustain and grow, businesses require some cash on hand. Thank goodness for single invoice factoring, or spot factoring, small business owners are assisted in times of financial needs. Interestingly, one of the oldest yet most popular methods of financial business funding is factoring. Standard invoice factoring has been here for approximately 4,000 years, but now there are several innovative new factoring solutions specifically for small businesses who find it difficult to attract conventional funding. Spot or single invoice factoring is one method that allows companies to get working capital and to enhance their current cash flow. Because most companies do not get paid immediately for delivered products or services, spot factoring benefits businesses that do not get paid for 30, 60 or 90 days by advancing up to 90% against the firm's invoices. Factoring companies, like the Interface Financial Group (IFG), buys invoices at a discount. Of course, it is a necessity for factoring companies to check the creditworthiness of the customers of their clients. They can usually fund within as little as 24 hours, and they don't expect to buy 100 percent of a company's receivables, so there are no minimum or maximum sales volume requirements. Most factoring companies have professional rates that are competitive. The variation on prices and fees are dependent on the client's special circumstances. Because in spot factoring each invoice purchase is considered as a separate transaction, then it does not operate in a portfolio lending approach. Rather, it's modelled on a buy-sell transaction. Among the advantages of spot factoring companies is their ability to provide their services at an approachable, cost-effective, flexible and quick manner. In some cases, total transaction time is reduced into just eight hours (as in the case when a client chooses to offer further invoices). This part of the article demonstrates how single invoice factoring at IFG works. Initially, IFG takes due diligence (lasting from one to two business days). After which, the client can then choose which invoices will be sold to IFG. IFG then checks the credit of every debtor in the invoices provided. They make sure that the sale represented has been satisfactorily completed. The debtor is then informed by the IFG about the purchase of the invoice - subsequently, the client gets their funding. Once the credit period comes to an end, the debtor then directly pays the spot factoring company. Call The Interface Financial Group (IFG) through telephone number 877.210.9748 for more details about invoice factoring. (Comment on this)
Monday, October 12th, 2009
9:43 am	The Function of Accounts Receivable Factoring in Small Businesses Hello I am Phyllis Rector and I would like to tell you an anecdote about a business owner that we helped out. At Interface Financial Group, we quickly get people funded - that is something that we are really proud of. So, I am dealing with a staffing firm here in Arizona. This firm provides contractors with electricians. Although he does not work under a sub-contract agreement, he is still considered as being in the construction industry. Anyway, this guy who had been earning USD 8 million last year, in 2008, his business fell went downhill just like the rest of the construction industry and he was, you know, kinda limping along. So, I talked to him. Fortunately, he liked our service. He's especially happy about the use-it-as-you-need-it element of our product. No minimums, no maximums, no commitments in terms of time. But, he didn't like to inform his customer that they had to sign on our notification of sale and that his customer would have to pay us directly. He thought that it indicated that you know, he was telling his customers he was in trouble. Well, you know the fact is, accounts receivable factoring has been around for 4000 long years. Okay. It's not a new kind of financing and in fact the larger your customer is, the more familiar he is likely to be with factoring. So, please allow me to tell you. Boeing, you know the guy who used to make airplanes, their suppliers factor their invoices and how do I know, because one of their suppliers approached us for a spot factoring for a really big order. Okay. So, in any case, this guy finally came called me on a Wednesday afternoon. He does weekly payroll every Friday. So, I went out to meet him on Thursday morning; we got the paper work done. I got his notification signed and I was able to wire him money by the 1 o'clock deadline on Friday so that he could make his payroll and since we wire money, it is good as the same day and he was very pleased. Waited about 45 days, got paid, rebated him back the difference between the discount and our fee. But please allow me to remind you, however, that we have minimum requirements as well. This isn't in terms of the size of the invoice that you sell us; instead, this is regarding the size of the company that we'll finance. You need to be at a $20,000 a month run rate in revenues. Okay. You need to have at the minimum 2 customers and so if you started growing out of this recession and you are starting to see your business pick up, give me a call ..... (Comment on this)
Saturday, October 10th, 2009
1:48 pm	How Accounts Receivable Factoring Helps Businesses Hello, Phyllis Rector here. Yes, you have at least one other video of me so far. But, I'd like to tell you a story about a customer that we have, a client of ours that we helped out through accounts receivable factoring. So, normally, we had actually, up until recently target customers, organizations with around 250,000 in sales up to approximately 5 million. The recession has opened a lot of opportunities though, and last December, we have financed a windows installer and distributor, who for the first 6 months, earned up to $8 million. Then, he had orders on his books, you know contracts signed but as you know in construction, often those contracts do not mobilize and he had a whole lot of stuff on his books. Bad news is, some of those contracts didn't mobilize and many of his rivals went out of business. As a a business initiative, he put up for sale his show and building. And then actually, somewhat out-of-the-blue, he had a major general contractor come to him wanting him to do provide the windows and install them for a mixed use commercial and residential project. Well, what is this guy going to say? He says, sure I will do that. Then the time came when the buildings were up and they're to install the windows. His supplier, however, said that they will ship the windows COD. What should the guy do? Well, thank goodness, you know he contacted one of my associates who called me - so I went over and I talked to him and we're able to structure a transaction where we could lend him money so his supplies did get shipped and his supplier was paid as agreed. So everything got to its order - windows were installed, our customer was paid by the general contractor. After about 50 days, our customer paid us, rebated the difference between the discount and our charge, and kept him in business. So just as a simple note, we do have some minimum requirements and they are pretty basic. Okay. We require our clients to have two customers and we need them to be at a $20,000 a month run rate in terms of revenues. So, if your business has fallen off, but you're beginning to grow out of it, and you require some financing or you even think you are going to need some financing, give me a call. It is always better to start the process sooner than later so that you will be ready to take on that big order as it comes. So, give me a call. Send me an email. We at the Interface Financial Group are in the business to be of service to you. (Comment on this)
Friday, October 9th, 2009
11:10 pm	Five Reasons Why You Must Pick Factoring Hi, this is Joe from the Interface Financial group and I'm here to give you 5 reasons why you would want to factor with us. The very primary reason why we're the best option for factoring is about speed. You do not have to wait for weeks as we can give you your needed money as quickly as 2-3 days. If you need money yesterday, we can get it to you that quickly. The second reason to go to the Interface Financial Group for factoring is that we are highly flexible. We do not need you to sell your invoices to us at 80-90% advance rate. Truth be told, we can get you 20-30% of that invoice in funds if that is what you only need now. If you need to draw 30% on that invoice now, and 30% next week, we can do that as well. This shows the fact that in this industry, the flexibility of Interface Financial Group's spot factoring product is still unsurpassed. The third reason, freezing the Interface Financial Group is that we do not make you sign any long term contracts. Several companies make you do this - and this requirement never fails to surprise me. Is this action a response to their fear of you going somewhere? Well, let me say that Interface Financial Group is not scared. We will be here anytime you need us and if you prefer to get out of our agreement, we won't charge you for that. The fourth reason to use the Interface Financial Group, no hidden fees. No fine prints involved. We charge only one rate - and this covers everything. Application fees, don't have them, termination fees, don't have them, Do diligence fees, don't have them, wiring fees, don't have them. Yes, you've heard that correctly. It's only when our clients are actually making use of our money shall we charge them. The last reason to use the Interface Financial Group for factoring is that we don't have a sales team. Thus, you are dealing with the partners in the business. You're talking to owners in the business. No loan committees to get through. No board of advisors to forward your application to and to get approval from. Indeed, these are the 5 reasons why you should avail of our services. Once again, Joe here from Austin, Texas - and I really do hope to be doing business with you soon. (Comment on this)