Companies have difficulties qualifying for traditional bank financing due to their length of time in business, credit rating, or financial strength.
Factoring and/or accounts receivable financing provides your company with almost immediate cash flow from the completion of sale. Unlike traditional bank financing, factoring relies on the financial strength and credit worthiness of your customers, not just you.Factoring goes hand in hand with your cash management, giving you some predictability in how you can plan to meet your monthly obligations...
Companies have difficulties qualifying for traditional bank financing due to their length of time in business, credit rating, or financial strength.
By Lou Wallace
One of the major failings of most businesses is the lack of accurate financial information. What these business owners don’t understand is that current and accurate financial information is the first thing and lender will want to see and if it isn’t up to par, well you know the old saying about its hard to make a good impression the next time. Read the rest of this entry »
By Lou Wallace
Are you positioning your business to be first in line to move when things turn around? The economy, while showing signs of improvement is still sluggish and everyone is still trying to figure out if it has reached bottom. Small business owners are still scrambling to keep their business in the black. Read the rest of this entry »
By Lou Wallace
The magic of turning the calendar page brings new inspiration to everyone. Reflection on the past year turns to focus to the New Year. At the top of everyone’s list of questions for 2009 “How can I grow my business?” Read the rest of this entry »
By Lou Wallace
Start up businesses as well as expanding businesses need working capital. Even established companies occasionally need a source of quick capital. The easiest and quickest way for a company to get this needed working capital is to factor it receivables. Read the rest of this entry »
By Lou Wallace
There seems to be a lot of confusion in the financial arena about factoring. While factoring is the oldest form of financing for a business most people including some financial experts have formed the wrong opinion of factoring.
I have had recent discussion with financial advisors and accountants who feel referring their clients to a factor or asset based lender will reflect poorly on them as professionals. While they know their clients need assistance they believe that factors or asset based lenders are not as reputable as Banks. They also feel that factors and asset based lenders are the lenders of last resort or only for companies that are on the verge of failing. I am not sure who started this ridiculous theory but I have to believe it was probably some Banker who wanted business owners to believe that if they couldn’t borrow from a Bank then there was something seriously wrong with a persons company. Read the rest of this entry »
By Lou Wallace
The financial markets have not dried up; the banks are just clogged. Perseverance and creativity is a quality within every entrepreneur. Business finance is readily available to those who look beyond the bank to asset based lenders.
Before there were business credit cards or home equity lines to borrow against there was Factoring. Popularized originally in the garment, furniture and floor covering industries this form of financing has evolved to be an ideal form of financing for new or growing businesses. Cash flow factoring is the perfect solution to cash strapped companies. Read the rest of this entry »
By Lou Wallace
Where to find working capital is a problem that plagues all business owners. Whether to seek an “Angel” Investor or find a commercial small business loans through an Asset Based Lender or traditional banking source. The difference is dramatic. Read the rest of this entry »
By Lou Wallace
One of the largest differences between Asset Based lenders and Banks is the use of credit scoring. Banks credit score everything they do when it comes to granting credit. Bank loan officers must determine by credit score whether they will take the next steps to look at an extension of credit for a company. If a company or its owner does not score within the range established by the Banks loan policies the business loan is rejected. Read the rest of this entry »
By Lou Wallace
Asset Based lenders supply the same type of loans as conventional banks plus they also can be more flexible in there under writing because of the other loan products. Besides lines of credit, asset based lenders offer factoring and purchase order financing. Some also offer term loans, equipment financing and leasing, as well as short term capital loans to meet short term cash needs. Read the rest of this entry »
By Lou Wallace
This seems to be a question a lot of small businesses are asking themselves these days. The simple answer is yes. While most of the Banks are obviously experiencing financial problems, others are not and there is money available for small businesses. Most small businesses feel they need to deal with conventional Banks. This does not present a problem in good times for most small businesses but is an absolute challenge in an economic atmosphere like we are experiencing today. Banks tend to be fickle and swing the pendulum from loose credit to no credit very rapidly. When times are good banks love small businesses but let times get rough or let the small business have any type of financial glitch and the Bank is no longer a friend. They all preach relationship as long as it is one sided Read the rest of this entry »