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Invoice Factoring – the Who, What and When
One of the greatest challenges faced by small businesses owners is finding the right source of business capital. Unfortunately, many small businesses don’t have a clear idea of where they are financially until they’re faced with an immediate, and often unexpected need for cash. Some of the most common reasons small businesses find themselves in this situation include:
- The opportunity to take vendor discounts
- The need to purchase new equipment
- The need to hire additional personnel
In past articles, we’ve discussed the benefits of invoice factoring compared to other funding methods including traditional bank loans and lines of credit. If invoice factoring makes sense for your particular situation, the next step is finding the right factoring company, and this is where the Who, What and When becomes important to improving and maintaining cash flow.
Who is the best invoice factoring company for my business?
When searching for the right invoice factoring company for your specific cash flow needs, be sure to consider the number of years the company has been in business. Invoice factoring companies with more than 10 years in the business generally offer a good program. Companies with 20 plus years are doing something right and it indicates they likely have a very solid reputation. Look for an invoice factoring company with an experienced, tenured management team and sales force. Get to know the people you will be working with because it DOES make a difference. Relationships are key – especially when dealing with what can be the stressful task of funding your business and keeping a positive cash flow. Look for reviews from clients and see what makes a particular invoice factoring company stand out.
What invoice factoring program is right for my business?
Most invoice factoring companies have similar programs but it’s how they work with the business owner that really makes a difference. Many invoice factoring companies have industry expertise in special areas such as trucking, medical and staffing that could be beneficial for those business owners. When selecting a invoice factoring partner focus on companies familiar with what you do. American Receivable works with each of their clients individually to find the best funding options for their specific business and cash flow needs.
When should you work with a factoring company?
If inadequate cash flow is preventing you from meeting your obligations on time or keeping your business from growing, it may be time to consider invoice factoring. Most companies experience cash flow problems due to slow-paying customers from time to time, but if it has become the norm instead of the exception, invoice factoring could be the answer to your cash flow problems. Most businesses usually become eligible for more traditional financing after factoring their invoices for a while and can build up credit, length of time in business, and adequate cash flow to meet their needs. Invoice factoring can be a short or long-term solution for managing cash flow, however, some business owners like the ease of invoice factoring and stay with it longer term.
Invoice factoring is based on the customers of the business and their ability to pay, not the credit of the business or business owner. Selling your invoices as a solution for cash flow problems allows your business to grow without incurring debt.
Do you think this is a good option for your business?
Call American Receivable today!
A Customer Focused Small Business
Small business owners have many obstacles to overcome
Starting a business requires planning and one of the key elements is raising capital. There are many expenses to consider. Space, staffing, product, insurance, office expenses, taxes and others have to be paid regardless of the success of your business each month. Some small business owners have trouble obtaining traditional funding due to credit or other reasons. Cash flow is necessary to stay in business and continue growth. There are many options to traditional funding, and invoice factoring has become one of the most common options for small business owners.
Capital is critical. Once you have funding for your business and know you can sustain it, you have to decide how you are going to run your business. What is your business philosophy?
What is the #1 asset in your business?
Your customers, of course. They provide the revenue that keeps your business growing. Your customers are your guarantee for success. A customer focused business makes them your priority and the success of your business depends greatly on just that.
Who doesn’t like to feel familiar and appreciated? People in general like to be acknowledged and made to feel that they matter in life. The same goes for business. Getting to know your customers and taking an interest in their business will go along way in gaining confidence and trust. Personal attention makes everyone feel good. Giving each customer access when they need it will help keep them as customers long-term. Confidence and trust are essential to customer retention. They need to know that they can trust you and be confident that you are the best solution for their business. Getting people who know your business and have a high regard for you are the best referrals, and a customer-focused business will obtain this.
Building a customer-focused business is easy, focus on the customer first:
- Know your customer and understand their business – talk to them about their needs and how you can provide support.
- Be available. When customers call, they need answers immediately. A customer-focused business will always have someone answering the phone and directing the customer in the right direction for problem-solving or other communication. Not being able to reach you when a need arises will cause them to look for other options and possibly move their business to a competitor.
- Listen to their questions and concerns and let them know you are interested in finding a solution to their issue.
- customer will call with a special request that may be against normal office protocol. Don’t make it habit, but once in a while accommodate them. Let them know it is not normally something you could do, but that you want to help them and will make an exception this one time. They will feel relieved and appreciate your willingness to find a solution for them.
- The success of your business is dependent on the success of your customer’s business, so make them your priority.
A customer-focused business is fairly simple. Get to know your customers and their business. Show them that you are interested in their success. Inevitably, your success depends on their success. Their success will result in referrals for your business as well.
The Fourth Of July Fun Facts
Thursday, July 4, 2019, marks the 243rd anniversary of the signing of the Declaration of Independence making America an independent nation.
1. Thomas Jefferson was the main author of The Declaration of Independence, however, the committee included Roger Sherman, Benjamin Franklin, John Adams and Robert Livingston.
2. The document is dated July 4th, however, Congress voted on July 2nd for independence from British rule. The final signatures were obtained on August 2, 1776,
3. The first newspaper printing was on July 6, 1776 by the Pennsylvania Evening Post.
4. Approximately 2.5 million people lived in America at the time. Today, over 345 million people live in America.
5. Calvin Coolidge was the only President born on July 4th.
6. Three Presidents died on July 4th. John Adams and Thomas Jefferson both died in 1826 on the 50th anniversary of the Declaration and James Monroe died July 4, 1831.
7. July 4th became a federal, unpaid holiday in 1870, and became a paid holiday in 1938.
8. The Liberty Bell rings 13 times every July 4th to honor the 13 original colonies, and. descendants of those who signed it tap the bell at 2 pm every July 4th.
9. George Washington treated the U.S. soldiers on July 4, 1778, by doubling their rum rations.
10. John Hancock, who was the President of Congress at the time, signed in the center of the document with the largest signature. His large signature brought about the phrase “put your John Hancock” when asked to sign your name.
11. The first fireworks celebration was n 1777 along with a parade and dinner. It is estimated Americans spend over one billion dollars on fireworks every July 4th.
12. Americans spend over 160M dollars on watermelon and consume over 150M hotdogs on July 4th.
Have a safe and happy Independence Day!
The History of the American Independence Day
The Fourth of July—otherwise called Independence Day or July fourth—has been a government occasion in the United States since 1941, yet the custom of Independence Day festivities returns to the eighteenth century and the American Revolution. On July second, 1776, the Continental Congress casted a ballot for autonomy, and after two days delegates from the 13 provinces received the Declaration of Independence, a notable archive drafted by Thomas Jefferson. From 1776 to the present day, July fourth has been praised as the introduction of American autonomy, with celebrations going from firecrackers, marches and shows to increasingly easygoing family social events and grills.
A History of Independence Day
At the point when the underlying fights in the Revolutionary War broke out in April 1775, couple of pilgrims wanted total freedom from Great Britain, and the individuals who did were viewed as radical.
By the center of the next year, nonetheless, a lot more pilgrims had come to support autonomy, on account of developing antagonistic vibe against Britain and the spread of progressive assumptions, for example, those communicated in the top of the line flyer "Good judgment," distributed by Thomas Paine in mid 1776.
On June 7, when the Continental Congress met at the Pennsylvania State House (later Independence Hall) in Philadelphia, the Virginia delegate Richard Henry Lee presented a movement requiring the settlements' autonomy.
In the midst of warmed discussion, Congress delayed the decision on Lee's goals, yet designated a five-man council—including Thomas Jefferson of Virginia, John Adams of Massachusetts, Roger Sherman of Connecticut, Benjamin Franklin of Pennsylvania and Robert R. Livingston of New York—to draft a formal proclamation defending the break with Great Britain.
Did you know? John Adams accepted that July second was the right date on which to commend the introduction of American freedom, and would supposedly turn down solicitations to show up at July fourth occasions in dissent. Adams and Thomas Jefferson both kicked the bucket on July 4, 1826—the 50th commemoration of the appropriation of the Declaration of Independence.
On July second, the Continental Congress casted a ballot for Lee's goals for freedom in a close consistent vote (the New York assignment avoided, yet later casted a ballot positively). On that day, John Adams kept in touch with his better half Abigail that July 2 "will be commended, by succeeding Generations, as the incredible commemoration Festival" and that the festival ought to incorporate "Pageantry and Parade… Games, Sports, Guns, Bells, Bonfires and Illuminations from one End of this Continent to the next."
On July fourth, the Continental Congress officially received the Declaration of Independence, which had been composed to a great extent by Jefferson. Despite the fact that the decision in favor of genuine autonomy occurred on July second, from that point on the fourth turned into the day that was commended as the introduction of American freedom.
Mid Fourth of July Celebrations
In the pre-Revolutionary years, pioneers had held yearly festivals of the lord's birthday, which generally incorporated the ringing of chimes, blazes, parades and speechmaking. On the other hand, throughout the mid year of 1776 a few settlers commended the introduction of autonomy by holding mock memorial services for King George III, as a method for symbolizing the finish of the government's hang on America and the triumph of freedom.
Celebrations including shows, campfires, marches and the terminating of guns and black powder rifles normally went with the primary open readings of the Declaration of Independence, starting following its reception. Philadelphia held the principal yearly remembrance of autonomy on July 4, 1777, while Congress was as yet busy with the continuous war.
George Washington issued twofold apportions of rum to every one of his fighters to check the commemoration of freedom in 1778, and in 1781, a while before the key American triumph at Yorktown, Massachusetts turned into the primary state to make July fourth an official state occasion.
Peruse MORE: Two Presidents Died on the Same July 4: Coincidence or Something More?
After the Revolutionary War, Americans kept on remembering Independence Day consistently, in festivities that permitted the new country's developing political pioneers to address natives and make a sentiment of solidarity. By the most recent decade of the eighteenth century, the two noteworthy ideological groups—the Federalist Party and Democratic-Republicans—that had emerged started holding separate Fourth of July festivities in numerous huge urban areas.
Fourth of July Becomes a Federal Holiday
The custom of energetic festival turned out to be much progressively far reaching after the War of 1812, in which the United States again confronted Great Britain. In 1870, the U.S. Congress made July fourth a government occasion; in 1941, the arrangement was extended to allow a paid occasion to every single bureaucratic representative.
Throughout the years, the political significance of the occasion would decrease, yet Independence Day remained a significant national occasion and an image of energy.
Falling in mid-summer, the Fourth of July has since the late nineteenth century become a noteworthy focal point of relaxation exercises and a typical event for family parties, regularly including firecrackers and outside grills. The most well-known image of the occasion is the American banner, and a typical melodic backup is "The Star-Spangled Banner," the national song of praise of the United States.
Is Your Company Prepared for an Emergency?
Working remotely has become very popular in recent years
Many businesses allow employees to work remotely once or twice a week. Many businesses require everyone to be in the same location working together for specific reasons. A business that does not normally find it conducive to have people work remotely, should have an emergency plan in place for an unexpected event that makes it necessary.
We recently experienced this first hand — there was a storm in our area that was unexpected
Trees were hit by lightning and split, some were uprooted, branches snapped, and windows broken and blown out. Streets were blocked by fallen trees and branches and traffic lights were out, causing it to be difficult to get around. The building where our office is located in was hit hard. Windows were blown out, flooding the inside of many offices and the first floor had furniture overturned. The electricity was out and the building became dangerous to occupy, with broken glass in many offices. We fund businesses through invoice factoring, and our clients need to be funded weekly. We were lucky, only one office in our suite was destroyed, and it was on Sunday, which resulted in no one being injured. The office next to us was completely under water and all windows blown out, damaging equipment and files.
We had previously taken some time to come up with a plan for an emergency such as this, and, immediately put it into action
Everyone was familiar with the plan and we made some calls and everyone came together to assist in the emergency. We made arrangements to move to the location we had set up in advance. We took computers, servers, printers, files, banking necessities and everything we needed to make it easier to serve our clients doing business as usual. We transferred our phones to our remote office so we could answer calls and continue business as normal as possible. The move took place within about two hours. on Sunday afternoon, and Monday morning we were ready to go. We sent emails to our clients explaining our situation and updated them as the week progressed. We learned the importance of our emergency plan, which in the 40 years we have been in business, we had never had to implement. Our entire staff worked together patiently and as a team to make it a successful week, which would not have been the case had we not been prepared.
Emergency planning is important and following are some things to consider:
- Insurance –your office and equipment should be covered by insurance.
- The ability to move computers, servers and files and/or have laptops for employees.
- Have software available on the cloud, as well as client information.
- Keep a hard copy list of clients and contacts that can be easily reached.
- Have a location that is easily accessible and has wireless connections and phone capabilities. A good option is an office suite. They are usually furnished and have copiers and other office machines available.
- Have emergency numbers for employees so you can let them know about the situation if they are not at work on that day.
Prepare your business for emergencies by holding a meeting with your management staff
Consider all of the things that keep your business running smoothly, and list what is necessary on a daily basis. Consider documents such as client lists and employee lists that you may need to access quickly. Make copies or put these on flash drives and take them home with you so that you can access them if necessary. Have a plan to contact your employees and customers in the event of an emergency.
Management should hold a meeting and go over Disaster Recovery Plans usually provided by your office building management. It is a good idea to create your own Emergency Protocol and Disaster Recovery Plan and have both in writing in a binder easy to reach. Each employee should also be familiar with these plans. In the event of an emergency or disaster, it is important that everyone works together for a common goal. Knowledge is the key to everyone being able to do their job effectively and in a safe location.
Plans should include protecting office equipment, computers, servers, and items of importance when there is impending inclement weather that poses a threat. Protecting equipment and files can be as simple as purchasing heavy-duty bins with lids that can protect things temporarily or for an extended period, and are easy to move if necessary. Office equipment should be unplugged and, if possible, moved to a safe (interior) place in the office when inclement, damaging weather is possible.
Depending on your business, there may be other considerations. It is important to take the time to put a plan in place. Hopefully, you will never need it, but in the event you do, you will be prepared and can continue business as usual without too much interruption or disruption.
Business owners know that happiness is a positive cash flow!
But, every now and then entrepreneurs are caught in a cash crunch. The long-term solution to this is a detailed examination of every expense, an analysis of pricing and investigating bringing on outside capital. The process takes time and won’t help meet payroll by Friday, or other operational costs. Every business owner knows this drill – drop everything and start dialing for dollars! In a frantic effort to get money into the bank, the owner starts calling customers to coax them to quickly pay their invoices. Since this is an emergency, calls are made to the customers with the best relationships and those most likely to respond to a plea for a quick payment. And while this may be one way to get cash in to meet the immediate expenses, the owner’s best customers are wondering about the strength of the business and the slowest paying customers may have gotten overlooked entirely.
Business owners finding themselves in a cash flow deficit...
...being looking for additional capital to meet these needs, overlooking the fact that they never established a collection policy for delinquent accounts. Following a few easy steps with each invoice issued, the owner will experience timely payments eliminate those desperate cash shortages just before payroll.
The first step is in the details
Even if you are providing service to a company down the block, verify where invoices are to be sent, who needs to be copied, and who approves your invoice for payment. Get the contact information for accounts payable, e-mail and phone numbers. An invoice sent to the wrong address is rarely forwarded. Follow-up on your invoices and get confirmation that the invoice is approved for payment. Also, confirm the customer understands the payment terms on the purchase order, and ask if you can offer a discount for early pay.
You know when your invoice is due...
...have someone from your company call several days before payment is due to verify that the invoice is in line for payment on that day. A little follow through will keep you up to date and help avoid problems that your customer may have with your invoice. The customer will also know that you are on keeping up with your business and that you will be verifying invoices and staying on top of them to pay. This takes time away from promoting your business but is necessary unless you find another solution.
When customers do not accept discounts for quick pay or are just slow, there are other options. One of these is invoice factoring, a simple solution to shortages and immediate cash for your business.
Cash flow is one of the most crucial factors to success in your business...
Funding your business through invoice factoring works like this:
The business owner sells his completed invoices to the factoring company. The factoring company verifies the invoices and funds the business owner with a percentage of the total, usually 85-95%, When the factoring company receives payment on the purchased invoices, they return the balance or “reserve”, less the agreed upon fees. The factoring company will stay up on when the invoices are due and allow you more freedom to promote your business.
The business owner has consistent cash without waiting for his customers to pay, and by using his own assets, does not incur debt for his business as he or she would with a traditional bank loan.
A few simple steps will keep your business on track, your cash available for running your business and peace of mind for you, the business owner.
Call American Receivable today and let us show you how we can give you peace of mind...
Ready to find out more?
Why Should Your Business Consider Hiring Veterans?
It can be challenging for veterans to transition back to civilian life, especially when it comes to finding a job. Many of the tasks performed and skills acquired during military service don’t translate to the skills listed in a more traditional resume. However, with some understanding of how military skills can be utilized in the corporate workspace, employers will find that there is a great advantage in hiring veterans.
Top 5 Reasons for Hiring Veterans
1. Trained for Leadership
First of all, veterans excel at working in and leading teams. Military training includes putting the greater good ahead of personal interests. Trained in collaboration and cooperation, veterans look out for the goals of the team and not just personal gain. This develops trust among the team and helps it to succeed and achieve their objectives. In the military, veterans learn leadership skills and also gain valuable experience working with both subordinates and superiors. Plus, as most men and women join the military as young adults, they have developed and honed their leadership qualities for a longer period of time than most corporate workers.
2. Quick Learning
Veterans were constantly learning to meet the expectations and master the skills necessary to fulfill their duties in the military. Through personal development, formal schooling, or in unit training, veterans started learning from the moment they joined the military. They develop a growth mentality and continue to seek out new knowledge and training. Military personnel is expected to learn quickly and efficiently, retain the information, and shift to something else.
3. Adaptability and Flexibility
Another asset of military training is adaptability. When hiring veterans, you gain an employee is quick thinking and can switch gears as needed. In the military, one never knows what the day might bring, what obstacles may be encountered and what tasks need to be accomplished. A veteran will be able to adapt to new environments, hurdles, and changing goals.
4. Performance under Stress
Hiring veterans will give you an employee that handles stress well. They will not be shaken in stressful situations and won’t buckle under pressure. In the military, mistakes and bad decisions can permanently affect lives, so veterans are trained to take their jobs seriously and avoid rash decisions. They analyze information, work through the problem, and trust their intuition.
5. Open to Direction
In addition, veterans can take constructive criticism well. They are used to debriefing and reviewing after tasks and actions. They know how to gain insight and identify areas that need improvement. When your company hires a veteran, you get the benefit of his or her experience with analyzing situations for missed opportunities and/or blind spots. Plus, you can be assured that any fixes and corrections will be applied without hurt feelings. Veterans will continually seek growth and improvement.
Common Characteristics of Veteran Employees
When hiring veterans, you also gain an employee with a vast array of additional experience and qualities:
- Technical experience and training
- Organizational skills
- Problem-solving skills,
- Keen decision makers
- Isn’t afraid of hard work
- Takes responsibility seriously
- Initiative and drive
- International familiarity, which can be a great asset in our global economy.
If you aren’t already convinced that hiring veterans is a wise business decision, you will be excited to learn that there are some available incentives and tax benefits. To learn more, visit the Veterans Affairs website.
Are you looking for other ways to help your business? Do you need money to finance payroll, inventory, and other expenses? American Receivable has over 100 years of combined financial service experience. Since 1979, our outstanding professionals have been dedicated to each client and their specific needs. There are no up-front fees, hidden costs, or long-term contracts, which are common with our competitors. Call for a FREE Quote Today: 1-800-297-6652 or complete an application for factoring online.
Much like destiny, the success of your business is determined by the choices you make for the business, not by chance
One of the most important choices, when starting or running a business, is financing. Every business needs capital in order to run smoothly. Fixed expenses like rent, payroll, taxes, and insurance have to be met or there will be no place to do business and no employees to work in the business. It is important to look at options and choose the one that will be most likely to ensure success for your business.
A business that is not eligible or does not meet criteria for traditional bank loans has to look beyond the bank for alternate sources of capital...
Bank loans also require repayment according to specific terms of the loan. Most businesses have some customers that pay on time. However, it is the customers that tend to be slower to pay and often go over 30 days, that result in cash deficits for the company. When the invoices are not paid, the owner sees a slow down in cash flow, which affects his ability to continue doing business as usual. Without consistent cash flow, the business owner may not be able to pay his employees or hire additional help. Purchasing inventory is difficult when the business does not have enough cash coming in to cover expenses necessary for the success of the business. This, along with rent, insurance, and other operating expenses are vital to the continued growth and sustainability of the business.
Invoice factoring, or receivable financing, referred to as "factoring"...
Is a great way for business owners to guarantee consistent cash flow for their business. Factoring is an age-old form of non-traditional funding for businesses. Invoice factoring allows business owners to use their own assets as a viable source of cash flow, and, without incurring debt.
American Receivable has been helping businesses for 40 years with their cash flow solutions...
Rated #1 among factoring companies nationally, American Receivable purchases invoices from the business and provides a percentage of the invoice to the business for those receivables. The business owner can use the money at their own discretion to better serve the immediate needs of the business. The business owner maintains control of running his business, his way. When the customer American Receivable and the business owner gets the remaining funds called "reserve" less agreed upon fees.
American Receivable works directly with each client to find solutions for their specific needs. The business owner does not have to sell all of his invoices, just the ones they choose. As needs change, American Receivable works with the business helping them continue to grow.
The Power of Making Decisions...
Each snapshot of consistently, we decide. Here and there those choices are little and unimportant, and in some cases those choices are life-changing. At last, however, the result of your day, your year, and your whole life are generally characterized by the total of basic leadership and the moves that you make en route.
basic leadership intensity of choosing
There's capacity in settling on a choice – notwithstanding when you're not totally sure that it's the correct one. I guarantee you that once you understand the unimaginable effect that creation choices can have, you can really start to carry on with your best life.
Choices can be amazing, however they aren't in every case simple…
To a certain extent, practically we all experience the ill effects of choice loss of motion sooner or later in time. Understanding the effect that your choices can have is regularly terrifying.
All things considered, if a choice is significant enough to transform you, it's reasonable that you'd need to make certain to take care of business.
The issue is that numerous individuals have a "deer in the headlights" minute when looked with choices. Terrified of settling on the off-base choice, they end up not settling on a choice by any means. In any case, not settling on a choice is a choice all by itself – and it's quite often the off-base one.
The powerlessness to settle on a choice can leave you solidified set up when changes are fundamental. It can likewise unleash ruin on your certainty, your satisfaction, and your general enthusiastic prosperity.
Looked with the issue of choice loss of motion, it's fundamental to understand that – in pretty much every case – any choice will be superior to no choice by any stretch of the imagination.
On the off chance that you can push past the dread and questions related with deciding, you can begin assuming responsibility for your life's results.
Settle on Decisions Quickly
Probably the most ideal approaches to dispose of choice loss of motion is to settle on choices rapidly. Indeed, a considerable lot of the world's best pioneers and pioneers owe quite a bit of their prosperity to their capacity to settle on choices rapidly.
When you settle on choices rapidly, you rule out uncertainty, stress, and perplexity. Rather than sitting around idly stressing over the majority of the conceivable outcomes and attempting to perpetually examine each potential result, settling on a snappy choice empowers you to quickly start giving your endeavors to finishing on that choice.
In the event that you really focus on a choice, you'll see that finishing on it is a lot simpler than you may have suspected.
The Law of Attraction manages that you will almost certainly show what you have to finish on any choice once you have completely subscribed to it.
Just by settling on choices rapidly, however, can you completely focus on them ideal out of the entryway without giving uncertainty and stress a chance to kill your choice gradually after some time.
Fortunately, settling on choices rapidly doesn't need to be troublesome. Regardless of what choice you may be looked with, the main thing you need to decide is whether this is something you need or need and whether it merits submitting your opportunity to.
On the off chance that the response to both of those inquiries is truly, you have all that you have to settle on a choice immediately. Some other inquiries or worries that you may have will answer themselves en route in the event that you are focused on settling on your choice a reality.
Utilize the Rule of 5
When you have settled on a choice, the subsequent stage is to carry that choice to fulfillment. It's insufficient to just settle on a choice and trust in the best. A choice is possibly completely tried when you devote your endeavors to it.
The Rule of 5 is an extraordinary spot to start to help finish on your choice. Following the Rule of 5 means completing five things consistently that will carry you closer to your objective. Suppose, for instance, that you choose to go into business. After you've settled on that choice, you ought to focus on completing five things every day that will enable you to get your business ready for action. They don't need to be grand undertakings. Real objectives are cultivated one little advance at once, which is the reason the Rule of 5 is so powerful.
Enrolling a responsibility accomplice is another extraordinary method to further focus on your choice. It is difficult to retreat from a choice when you have somebody that you regard and trust driving you forward and considering you responsible.
Imagine Your Goals Daily
Picture, in your brain, what your life will resemble and how you will feel once you've achieved it. Picturing your objective thusly will fill in as an amazing inspiration by giving you a feeling of the advantages before the objective is cultivated.
On the off chance that you make strides, for example, these to focus on a choice and persuade yourself to finish, you can set yourself up for progress after any choice you make.
Have you at any point been incapacitated to settle on a choice, and afterward chosen to jump forward to progress?
Bank Said No? Top 5 Alternative Financing Options for Your Small Business
Madeline owns a small printing business and needs additional capital to purchase new equipment and to hire an extra sales representative. She approached her local bank for a traditional small business loan and was declined. Devastated, Madeline doesn’t understand why her successful business can’t secure a traditional bank loan. Unfortunately, this happens more than you would think. Small businesses are often unable to secure traditional loans to fund growth and get needed cash for expenses. That’s where alternative financing can greatly benefit small business owners like Madeline. With so many alternative financing options available, your small business can find the capital you need to grow, fund research and development, increase inventory and pay your expenses.
Here are the top 5 alternative financing sources for your small business:
1. Invoice Factoring
This is one of the best options for small businesses with money tied up in accounts receivable. An invoice factoring company, such as American Receivable, will purchase your current, outstanding invoices and give you a percentage of the value. When American Receivable collects payment on the invoice from your client, you receive the remaining amount due on the invoice, less a small factoring fee. Invoice factoring gets you the cash you need right away! A true advantage of this alternative financing option is that your eligibility is based on your client’s ability to pay, not your company’s credit rating.
Call 1-800-297-6652 for a free quote from American Receivable.
2. Personal Loans
These allow you to use your personal credit score and household income to get money for your business. A personal loan will be smaller than a business loan but can give you some alternative financing for your new small business.
3. SBA Loans
Loans from the SBA are guaranteed in part by the Small Business Administration. SBA loans are originated by traditional loan producers, but a portion is guaranteed by the SBA if you default. It allows a small business who otherwise would not qualify for a loan to get needed funds. The downside is that an SBA loan can have a lengthy application process, and it can be difficult to qualify.
4. Business Credit Cards
These accounts allow you to pay for business expenses without applying for a loan. You can even earn rewards and build your business credit score. It’s a bonus if you can find a card offering an introductory 0% APR for the first year. The downside is keeping a running balance for the long term can add up to higher costs owed if you are not careful.
5. Business Grants
These are the most difficult form of alternative financing to come by, but if you find your business qualifies for a business grant, you get free money to fund your business. Many business grants are government funded and geared towards veteran and minority-owned businesses.
Good News for This Small Business Owner
Madeline contacted American Receivable and was able to get the cash she needed to fund payroll and new equipment. With the increased sales from the new sales representative, she was also able to apply for a line of credit. Alternative financing options worked for Madeline’s small business. Which one will work for yours?
American Receivable has been helping small businesses with alternative financing since 1979 and is ranked #1 among the nation’s factoring companies. Find out how invoice factoring can be a solution to your business’s cash flow needs.
Call for a FREE Quote Today: 1-800-297-6652 or complete an application for factoring online.
Top 5 Tips to Protect Yourself from Slow Paying Customers Affecting Cash Flow
What happens when one of your favorite customers stop paying their outstanding invoices on time? I may not be a good idea to take drastic action and potentially damage the relationship. However, you don’t want to jeopardize your company’s cash flow and negatively impact your bottom line. Here are five tips on how to protect your company from cash-strapped customers, and avoid letting their lack of cash flow affect your bottom line.
1. Look for signs of trouble. Here are some examples:
- Payments consistently not coming in regularly and on time
- Payments made from a personal account or credit card.
- The client keeps asking for more and more extensions?
- A new client approaches you because they were “fired” by your competitor.
These are all warning signs that your customer may be having some major cash flow issues.
2. Understand Bankruptcy Laws in your State.
If your customer goes into bankruptcy, it’s important to understand your rights and chances of receiving back payments as a creditor. Unfortunately, any payments you received with 90 days of their filing for bankruptcy may be recalled. If you did business with your client within 20 days of filing, you may have better chances of getting paid. Know how a customer’s bankruptcy filing can affect your cash flow. Understand how collection actions may affect or hinder your case for receiving payments. It may be wise to contact an attorney if the customer is a significant part of your overall income.
3. Don’t accept new business from a client that is having financial problems.
It’s a tough choice to make, but refusing future business from a client that has stopped paying on time can be the wisest business decision. Before you take this more drastic step, do your due diligence and see if there are expected upturns in your client’s industry or, if feasible, have an honest conversation and see if there are indications of improvement and cash flow growth for their company in the near future.
4. Look for alternative ways to obtain money on your receivables.
Invoice Factoring can put money in your hands and improve your cash flow. An invoice factoring company, such as American Receivable, will purchase your unpaid invoices and give you a percentage of the value. When American Receivable collects payment on the invoice from your client, you receive the remaining amount due on the invoice, less the agreed upon fees.
To learn more about Invoice Factoring, visit American Receivable’s website.
5. Look for alternative ways to get paid by the customer.
- Require a deposit or prepayment for any future business. This will give your company cash flow up front, and protect you—at least partially—from any possible future non-payment. You can adjust the percentage of the down payment based on the perceived risk.
- Require payments at benchmark points during the contracted work. This will hedge against the need for a single, large invoice at the completion of the job. Partial payments can be set up monthly, or you can help your cash flow by arranging for payments at key points in the job cycle.
- Change the invoice terms and set up a financing plan. Instead of Net 15 or 30, can you set up a payment plan that allows the company to pay over a longer period of time with added interest payments?
- Exchange services for services. Does your customer have a business for which you can utilize their services in exchange for yours? If they do not have the cash flow to pay their invoice, you can set up a barter transaction.
- Similar to barter, you can negotiate the transfer of assets instead of cash payment on an invoice.
- Discuss their cash flow. Is it a seasonal business and their cash flow will improve in the coming months? Is your cash strapped customer coming into a large payment soon, or will one of their debts be paid off in the near future? In other words, will their business and cash flow improve soon enough that they can pay their outstanding balance to you in a reasonable time frame?
- As a last resort, you can look at collections options or talk to an attorney.
- As a business owner, protecting yourself from non-paying, cash-strapped customers can be difficult. Understand the challenges of running a business, and understand the cash flow problems that can occur. It’s important to look for the red flags of failing business, and find solutions to alleviate the effects they have on your business.
The Solution in Invoice Factoring
Find out how American Receivable can offset issues from cash flow problems caused by non-paying customers. American Receivable is the industry leader in invoice factoring, helping your company obtain the financial resources they need to grow, increase inventory, make payroll on time and effectively compete in the marketplace.
Call for a FREE Quote Today: 1-800-297-6652 or complete an application for factoring online.
American Receivable Corporation Has Been Rated #1 Among Factoring Companies…
…nationally, for the 5th consecutive year by Business.com and Business News Daily! – “Best Factoring Companies 2019.”
American Receivable has been working with small business owners helping them manage continuous growth through cash flow solutions.
Jack Stieber, President of American Receivable says they attribute their success to their clients, their exceptional working partnerships within the financial industry, and an incredible tenured and dedicated management team providing exceptional customer service.
“We work with each client to find cash flow solutions specific to their business needs because not all businesses or industries are alike.” Jack Stieber
American Receivable helps start-ups and established growing companies meet their goals by providing working capital essential to business operations. A business sometimes overlooks their greatest asset for working capital: revenue. American Receivable provides a way for small business owners to fund their business and keep cash flow positive without incurring debt through invoice factoring.
That’s not all…
Taking advantage of invoice factoring is simple and easy – the process is made up of only 5 steps.
- You – the business owner will supply your customers with a product or service and then you invoice your customer directly.
- You send a copy of the open invoices to the factoring company for purchase.
- Upon verification of the invoices, the factoring company funds a percentage, usually 85-95% directly to you. Funding is within 24 hours in most cases.
- Your customers send payments for the invoices directly to the factoring company on your behalf.
- Once invoices are paid, the balance of the invoiced amount, less previously agreed upon fees, will be sent to you.
What you need to know:
Here are some things to consider when looking for a reputable invoice factoring company:
- Length of time the company has been in business.
- Are long-term contracts required or can I factor short-term?
- Are there up-front fees?
- What other services are offered if I factor with you?
- Are there extra fees for these other services?
- Do I have control over which invoices I sell to you?
- What is your fee structure?
- If you are a new business ask if they fund start-ups?
- Are you familiar with my industry?
- What is the application process and what is required?
- How long will it take to get approved?
- If my application is approved, how soon can I sell my invoices and be funded?
The best part…
…the glorious perks of doing business with a #1, nationally rated factoring company for the 5th consecutive year!
Factoring invoices close the funding gap caused by slow-paying customers because invoice factoring yields instant working capital!
Invoice factoring is a great alternative for a business owner who might not otherwise be able to acquire capital from traditional sources due to weak personal credit, lack of collateral, or length of time in business. Invoices for delivered products or completed work can be one of the greatest assets for a business. Invoices represent revenue for the company. Invoice factoring is an option to fund your business through the revenues of the business, therefore, not incurring additional debt for the business. Receiving the major percentage of the invoices up front, allows the business owner to operate with a positive and consistent cash flow, which is crucial for any business to operate smoothly and manage growth. American Receivable monitors the receivables and collections they purchase from a business. Assisting with collecting past due funds gives the business owner the ability to focus on managing and promoting the business.
Many business owners are unaware of the value of their unpaid invoices. Slow-paying customers can hold a business back. Factoring those valuable invoices is the answer to keeping cash flowing and not adding more debt for the company.
About American Receivable: Since 1979, American Receivable has provided small businesses with the financial resources they need to grow, increase inventory, make payroll on time and effectively compete in the marketplace. Operated and managed by the original Managing Partners, American Receivable earned the respect of the financial industry for their personal attention to their clients. They offer exceptional client services and have a very knowledgeable and tenured management team. Don’t wait, get started today – click here to send us an email!