For businesses looking to improve their cash flow situation, understanding the tools available to them is vital. Two options frequently considered are factoring and assignment of receivables. Though they may seem similar at a glance, there are distinct differences between the two methods. Factoring Explained Factoring, also known as invoice factoring or accounts receivable factoring,…
Whether you’re a seasoned entrepreneur, a budding startup founder, or simply someone interested in financial literacy, understanding what it means to be cash-flow positive is crucial. Let’s delve into this concept to understand its importance. Defining “Cash Flow Positive” At its core, being “cash flow positive” means that a business or individual has more money…
In the realm of business financing, non-recourse receivables factoring has emerged as a strategic solution for companies seeking to streamline cash flow management and mitigate risk. Let’s delve into the advantages of non-recourse receivables factoring and explore how it can bolster your company’s financial stability and growth prospects. 1. Enhanced Cash Flow Non-recourse receivables factoring…
If you’ve heard the term “factored with recourse,” but don’t know what it means, you’ve come to the right place. In today’s post, we explain what happens when accounts receivable are factored with recourse and the implications for your business. Keep reading to learn more. How Does Factoring Work? Before we delve into recourse factoring,…
If you applied recently for a loan and noticed that your bank was stingier than before, it wasn’t just your imagination. Banks have been tightening their lending standards throughout 2023 due to a variety of factors. Keep reading to learn the reasons and discover some alternatives to get the capital you need. Why Are Banks…
You’ve probably heard the term “no-doc” business loan thrown around a lot these days. And even if you don’t know what a no-doc loan is exactly, you probably understand that it’s less complicated than a traditional loan. But does factoring fall within this category? Keep reading to find out. What Is Factoring? Factoring refers to…
Whether it’s a small business or a larger corporation, there will always be times when a business may face a cash crunch. In these situations, the business needs to raise funds to keep the operations running. Invoice factoring and overdraft are two common options businesses can consider in such circumstances. But which one is best? …
For businesses that struggle with slow-paying clients, factoring companies can be a great way to improve their cash flow. However, business owners often wonder if factoring companies check their credit scores. If you’re asking this too, then this blog is for you. Do Factoring Companies Check Your Credit Score? Typically, factoring companies don’t check your…
Receivables Management refers to the process of tracking and managing customer payments to ensure smooth cash flow in the business. In this blog, we’ll discuss the benefits of Receivables Management and provide some tips to help your business achieve a stronger financial position. Limit Bad Debt One of the most significant benefits of Receivables Management…
If you own a business but don’t know what the cash conversion cycle (CCC) is, then you are missing out on opportunities to increase your cash flow and profitability. The good news is that in today’s post, we tell you everything you need to know about CCC. What Is the Cash Conversion Cycle (CCC)? The…
