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Other Added - Do You Qualify for Factoring?
With the number of telecommuters increasing every year and the amount of workers who bring work home with them at night or on weekends, it's no surprise that more and more folks are setting up an office at home.For some, putting together a home office is as simple as purchasing a laptop and having a free outlet. They can work anywhere. For others, it isn't quite that easy.What you'll need for a home office depends on a number of things: how your office will be used, how often you'll be using the space, specific job requirements, family circumstances, space limitations, and budget. For some, inevitably, other considerations will arise during the planning phase.Perhaps most important is to consider how your o
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 t
Why would an intelligent, hard-working, executive need a Coach? Unless you are in business for yourself, isn’t that what your superiors are for? It would seem logical to assume that everyone in the corporate world has someone to report to, hence replacing the need for a Coach. What many find, though, is that the bigger the company, the bigger the challenges and the less time he/she may have for you.So how do you know if you could benefit from having a Coach? You work hard and you are successful, yet deep inside you feel you could be challenging yourself even more. Unsure of how to get to the next level, you continue setting goals, but find that most days ultimately end the same as the day before. With a Business/Execut
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 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 t
Water vending machines are self service water dispensers. You can fill up your containers, bottles, and jugs with pure water at these machines. Water vending machines provide water of good quality in return to inserted coins, paper currency, card, or token. Most of them are placed in front of supermarkets and petrol stations. They can also be found at health boutiques, large hardware stores, apartment complexes, service stations, and grocery and convenient stores.Water vending machines are available in a variety of styles including free-standing units, and wall and window mounted equipments. Most water vending machines dispense one to five gallons of pure water. Some are available with options such as UV sterilizer, coin ch
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 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 t
If you really want to make a decent living and want to have a good, successful, viable computer consulting business, sooner or later you have to narrow down your focus and develop a keen intuition. Additionally, you have to become good at spotting the best small businesses accounts.The Small Business MyriadThere are millions of small businesses in the U.S. and there are millions of small businesses abroad. There’s a pretty good chance that there are thousands, if not tens of thousands, of companies that would qualify as small businesses in your local area.The sad fact is, if you latch onto the wrong ones, you’re not going to have a very good computer consulting business.Finding the Best Accounts
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 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 t
My husband's car has had a few mechanical problems this year. It's a few years old and is at that stage where little things need replacing. In fact we found it's got to the point where he needs to buy a new one.Anyhow it reminded me of what happened earlier in the year when it was taken to our local mechanic for another repair job . At the time of pick up, Robert the mechanic said he hadn't prepared the bill and will do so later and let us know how much it would be. After 3 weeks, we still hadn't received the invoice and my husband suggested I chase it up and I said 'no'. It's not up to me to follow up with someone whom I owe money to, it's their responsibility. When Tama (my husband) called him, Robert said he had be
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 t
Finding your ideal home takes some work. Do you want a single-family home or a condo? How big a home and in which neighborhood?Let’s begin by talking about different types of homes. Single-family homes are typically detached houses on a single lot. The owner is responsible for all aspects of the property, including the interior, exterior and landscaping. A condominium, on the other hand, is a real estate project in which the individual owner holds title to a particular unit in a building. Most condos have a monthly Homeowner’s Association fee that may cover expenses such as exterior building insurance, landscaping, pool and recreation area maintenance, trash, water and a reserve for future capital improvements to the pr
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 beginning of the conversation.
Financial Statements:
Some factors will require financial statements and others will not.
Providing financial is usually where you will find the most aggressive rates available.
If you do not want to deal with providing financial statements, ask up front if they are required. We have programs available that requires no financial statements.
Personal Credit:
Even though your customers are the primary focus, your personal credit is taken into consideration. If your personal credit has taken some severe hits recently, discuss this up front with the factor to find out how much it will be taken into consideration.
This covers some of the basic, I hope it helps!
Thanks for reading.
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