Even before the Corona virus 69% of small business owners faced cash flow issues. Negative cash flow can limit your ability to pay bills, limit growth opportunities and ultimately force a business to close. These following best practices will help business owners turn cash flow positive without taking on new debt! Email your invoices immediately and correctly - It may seem obvious to bill as soon services are delivered. Some companies only issue invoices once a month. The business owner needs to make sure that invoices are being sent to the correct address. Also ensure you have the correct information like [...]
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So far Blue Ridge Factors has created 12 blog entries.
It's that time of year again, time to file your taxes. What about factoring fees and tax deductions? Your tax returns verify your previous income level and are proof of the tax obligations you have fulfilled – both filing and payment. It is recommended to turn to a creditable tax agent to ensure everything is done correctly. For better understanding of your invoice factoring terms of agreement, reach out to your factoring company. There is a lot to be determined when determining if the receivables you factored are taxable. How a company treats its accounts receivable depends on what accounting method [...]
So, you made the decision to factor your invoices. You’ve discovered that invoice factoring allows you to get funds immediately without worrying about acquiring additional debt. Recently, you have applied for accounts receivable factoring through a factoring company and you were approved. Now that the hard part is over, what happens next? Many businesses aren’t sure what the next steps to take after being approved for invoice factoring and receiving cash. There are some smart ways to use the funds as a means to your cash flow problems and essential needs. Here's Five Steps to Take After Being Approved for Invoice [...]
Are you a business in need of working capital to fund expansion or pay bills? A growing cash flow solution is factoring or, selling invoices with AR Factoring. How Factoring Works So let’s face it. Cash flow is everything. You can have all the business in the world but until such time as your customer actually pays for the goods or services, you are stuck. In a cash flow bind, many businesses are faced with two vastly different choices. The first is to go to a bank and try to get a loan. Although bank loans are sometimes a good option, [...]
Despite what you may have heard, factoring isn't just for failing, cash-flow deprived businesses. In fact, factoring companies ideally look for clients and businesses that are ready to grow—not just survive. Here are a few reasons why factoring helps grow your business. How Invoice Factoring Works Invoice factoring is a straight-forward, alternative funding solution that removes the red-tape from banks and gets you the money you need quickly. How? By exchanging customer invoices for cash today.Instead of waiting weeks (sometimes months) to collect on your invoices, sell them and get the funding you need now. While it does help companies pay [...]
While a viable and easy funding option, invoice factoring sometimes gets a bad reputation. Some say it is impossible to avoid high-interest rates. Others say it’s only for large business. Some people even think the process is a hassle for your clients. Those statements couldn’t be more wrong. Let’s break down a few common factoring misconceptions and myths. Factoring Misconceptions and Myths You Need to Stop Listening To Whether they are ill-informed, slightly off or completely wrong, these factoring misconceptions and myths are passed around through water cooler talk. But, it's time you stop believing everything you hear. 1. Factoring [...]
Growing, expanding and running your business requires cash and funding. Many companies find this needed cash through traditional funding situations like bank loans. However, these don’t work for every business. When a company has unique funding needs they often look for alternative options like factoring. But, often times you're left thinking: will factoring work for my business? What is Invoice Factoring? One funding option is invoice factoring. Businesses or companies can sell their accounts receivable invoices (at a discount) to a funding source for cash, essentially factoring future payments for funding now. But, would factoring work for your business? Isn’t Factoring [...]
Factoring has provided important funding to businesses, helping them with capital to grow. They provide needed funds when businesses start struggling with cash availability. It’s the financing you turn to when you have the potential or assets, but not the cash. Unfortunately, there are a few factoring companies that might try and take advantage of the their client's lack of knowledge with the process. Thorough research isn’t just suggested—it’s required—before signing a factoring agreement. Generally, understanding what you are signing, before signing is standard protocol. But, this is especially true for factoring agreements. Some companies fill their agreements with extra requirements [...]
Every day business owners juggle the cash flow demands of their companies. More than ever, they are turning to invoice factoring as a trusted solution, even when banks decline loans and credit lines. If you are considering accounts receivable funding it pays to be prepared. Save time and money by understanding these five tips before making application to factor your accounts receivable: […]
When a business is strapped for cash they often turn to factoring accounts receivable as a financing solution. Of course a factoring company expects to earn a profit on the cash advance and charges a fee for their service. What about the accounts receivable factoring costs? Since the overall goal is improved cash flow, a company considering accounts receivable financing will carefully weigh the benefits against the costs. Here are five ways a business can reduce or offset the cost of factoring and still improve cash flow: Strategy #1 – Early Payment Discounts Use the money to take advantage of early [...]