While everyone knows that account receivables are important, not everyone knows that there’s a way to measure how effective you are in managing your receivables. In today’s post, we discuss receivables turnover, starting from a basic definition, and show you how to calculate your receivables turnover ratio. What Is Receivables Turnover? Simply put, receivables turnover…
Whether a recession happens or not, something is for sure: increasing your business’s financial strength is always a good idea. In today’s post, we share four strategies to help you do just that. Listen to Your Clients Everything begins with your clients. Your clients’ needs change constantly and by being aware of how those needs…
With so many financing solutions out there, it can be difficult to make sense of your options. For example: what is the difference between receivables factoring and forfaiting? How to determine which one works for your company? In today’s blog post, we answer all these questions. What Is Receivables Factoring? Receivables factoring is the process…
In today’s post, we take a closer look at the differences between Factoring of Accounts Receivable and supply chain finance. Keep reading to learn more about these two financing options. What Is Factoring of Accounts Receivable? As we have seen in previous posts, Factoring of Accounts Receivable is a financing method where a business sells…
Using factoring to cover operating expenses is the smart move for small businesses looking to meet the challenges of the “new normal.” Keep reading to discover why. Using Factoring to Pay Operating Expenses Flexibility is one of the reasons why factoring of accounts receivable is so convenient. When you factor your receivables, you get cash…
When it comes to financing, there are no one-size-fits-all solutions. Different businesses have different needs. However, if you are weighing the pros and cons of factoring and bank loans, here are three facts we believe you should keep in mind. 1. Factoring Is Fast If there’s one thing you have to know about banks is…
Everyone seems to be talking about inflation these days. But what is inflation, exactly, and what are its effects on your business? Can you use Factoring of Accounts Receivable to deal with the effects of inflation? Keep reading to discover the answers. What Is Inflation? How Does It Affect Your Business? Simply put, inflation is…
The world of financing can be complex and fast-moving. With so many technical terms floating around, it’s easy to get confused. For example: What is the difference between receivables factoring and receivables securitization? Keep reading to find out. Securitization of Receivables To talk about securitization of receivables, we have to understand first what securities are. …
Everyone knows that cash flow is important, but not everyone can tell why. In this post, we take a closer look at cash flow using simple examples and provide some smart cash flow management strategies. What Is Cash Flow? The term “cash flow” refers to the balance of cash moving in and out of a…
Knowing how to manage your Accounts Receivable is essential to the success of your small business. From some ideas to streamline your processes to a great way to deal with slow-paying clients, here are four accounts receivable tips every small business owner should keep in mind. Get Organized Organization is the name of the game…
