Invoice Factoring Financing

Are you forced to wait 30 to 60 days to be paid by your commercial clients? Waiting to be paid by your clients can be very challenging, especially if your business is a startup or growing quickly.

The solution is Invoice Factoring:
Invoice factoring can get your invoices paid in as little as 24-hours, providing you with financing to pay employees, suppliers or rent. More importantly, factoring your invoices eliminates the uncertainty of when you’ll be paid, allowing you to confidently manage and grow your business.

How does Invoice Factoring work?
Factoring invoices is very simple and helps you get reliable and stable cash flow. It can easily be integrated to your business and works as follows:

1. You deliver your product/service to your client.
2. You send an invoice to your client and send a copy to us (the factoring company)
3. We advance you up to 90% (the remaining 10% is used as a reserve)
4. You get immediate use of the money to pay suppliers, taxes and employees
5. We wait to get paid by your customer
6. Once we get paid, we rebate the 10% reserve (less a small fee)
7. You may qualify for invoice factoring rates as low as 1.5%. To find out if you qualify,

click here now and a Factoring Specialist will contact you immediately.

Invoice Factoring Costs:
Factoring your invoices can be very affordable, with the average monthly discount being between 1.5% and 3.5% per month. There are two major variables that we consider when determining the cost of a factoring transaction. They are the size of the transaction and the credit quality of your clients. If you’d like to get an instant cost estimate, please click here and a Factoring Specialist will contact you as quickly as possible.

If you would like to see if you qualify for any of our programs please click here now and a Factoring Specialist will contact you right away or call 1-800-901-2418 to speak with someone immediately.

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How Scrap Metal Traders Can Leverage Purchase Order Financing

To be a successful scrap metal dealer you must be able to handle large orders – constantly and consistently. You must be able to pay for the scrap metal costs in advance (and at the best prices) and then wait 30 to 60 days until the transaction is settled to get your investment and profit back. However, few scrap metal traders can handle many large orders at a time while waiting 30 to 60 days to get paid. Therein lies the problem.

Many dealers try to go to the bank hoping to get business financing. However, they soon discover that most banks don’t understand the recycled scrap metal business well and don’t have the right solutions for the industry. Furthermore, getting bank financing is especially hard since banks require that you show three years of profitable business history and have sizeable collateral before making a loan.

Either way, banks loans don’t always work well for scrap metal dealers. In this industry, once you find the best scrap metal prices, you must move quickly to seal the deal. A better solution than bank financing is to use purchase order financing.

Purchase order funding provides you with the necessary funds to execute your confirmed POs. It provides you the financing to pay scrap metal suppliers, enabling you to deliver the goods and close the sale.

Purchase order financing is easy to use and works as follows:
1. The scrap metal dealer / trader secures a purchase order from a customer
2. The purchase order finance company then pays the scrap metal costs from the supplier yard (usually by placing a deposit or using a letter of credit)
3. The yard delivers the scrap metal to the customer according to the order
4. Once the customer pays for the scrap metal, the transaction is settled

Purchase order financing has a number of advantages over conventional bank financing. First, it’s very easy to obtain. The biggest requirement is that your company have purchase orders form commercially credit worthy customers. And second, it can be set up quickly. Most of the times you can get the financing in days (rather than months). And as opposed to bank financing, most startups will qualify.

Many times, po financing can be used in combination with factoring financing. Combining these two products can allow your business to fully optimize its cash flow, enabling it to grow at an even faster rate.

Although not widely used, these financing tools are quickly being adopted by growth minded scrap metal dealerships and traders. Be sure to consider them as options the next time your company needs financing.

By: Marco Terry

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“Factoring Your Way To Liquidity” By Henry Byers

Dear Friends,

In an effort to keep our articles fresh and informative I will begin posting articles and white papers on factoring from around the web. To start this new series, I found the following article “Factoring Your Way To Liquidity” By Henry Byers online at http://www.articledashboard.com/. It provides a greater overview of all the services and benefits of factoring available. Please note: Universal Funding only specilizes in B2B Factoring.

Thanks for visiting and please let me know if there is anything specific you would like to see on our blog.

Sincerely,

Darcy Gillingham

darcy@universalfunding.com

“Factoring Your Way To Liquidity"

There are various types of factoring available. These factoring can be in any industry viz. account receivable factoring, asset based lending, business loans, construction factoring, credit card receivables factoring, distributors factoring, equipment, hard money loans, invoice factoring, manufacturing, medical factoring, purchase order financing, real estate lending, staffing, systems, technology, trucking, verdict funding, wholesalers, etc.

Various agencies provide all these types of factoring. Usually their turnaround time is 24 hours. They provide exclusive online and paperless factoring solutions to the small and medium sized businesses. These agencies either provide stated rates for factoring of invoices of a particular amount or they offer a free invoice-factoring quote. Thereafter these agencies approach the factoring companies that purchase the creditworthy accounts receivable at a small discount and convert the invoices in to cash.

With the help of these factoring agencies cash is received in mere 24 hours and no debt is created. Since there is no debt created it increases your credit worthiness which can be used to avail a loan. This also represents a healthy balance sheet and strong financial position. These agencies also offer higher advance rates which ultimately results in factoring lesser invoices but generating all the required money.

Moreover the factors handle the collection in professional manner thus reduces the collection costs. They also help in processing of invoices by generating invoices online. This further means increased paperless work. As a result the turnaround time is much shorter than any other means.

Invoice factoring is also known as accounts receivable financing. This practice helps in solving the immediate cash flow problems for small businesses with immediate infusion of money. They also provide a credit facility to small business owners with complete flexibility. This also provides the working capital to the small or medium business owners. This factoring helps in generating working capital without the need of constant renegotiations. Since there is a considerable increase in the working capital it leads to more sales and expansion of business.

A practice of factoring helps small business owners not only to solve their cash problems but also help in increasing sales. Small business owners can also concentrate on their businesses rather than chasing their customers for payments and cash. Factoring practice helps all kinds of small to medium business owners whether they are a small trucking company or any manufacturers. As a result of invoice factoring, it not only reduces accounting costs but also helps business owners and manufacturers in increased productivity.

This practice if factoring the invoices keeps the businessmen from other time consuming jobs like collection, administration, book-keeping, looking up additional capital or warding off creditors. Finally the best part of factoring is that the business ownership remains unchanged as in case of loan, etc. Since there is no loss of business equity, the ownership percentages remain unchanged.

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By Henry Byers

Henry Byers, Factoring Financial Services advisor - focusing on Factoring Company and Business Factoring