Call for a FREE Quote Today: 1-800-297-6652   –   Ranked #1 among factoring companies nationally

Blog

11 Jan
Welcome to Our New Website

We are excited to announce that our new and improved website is now live! Our new site has a fresh new layout for easier navigation for prospective and current clients as well as brokers. Our goal is to provide you with a quick and easy way to learn not only about our company, but also the financial solutions we offer. Along with these new features, we also made it quick and easy for prospective clients to receive a free quote and apply online.

We hope you find our new website to be user friendly and helpful for all of your financial needs.

27 Dec
4 Small Business Tips for Success in 2018

small businessman preparing for 2018Owning and operating a small business takes dedication and hard work.

As 2017 comes to a close, it’s a good time to take a look back at the business practices that worked well, and which ones need to be improved on.

Here are four tips to help you make the most of 2018.

Focus on the most important thing(s)

One of the biggest challenges with running a small business is distraction. This often stems from the need to wear many hats. Since you may not have the financial muscle to employ top talent, you’ll often find yourself being the accountant, lawyer, and marketer of your business at the same time. Studies show that such “multitasking” can seriously derail your progress and possibly even put you out of business.

So, in 2018, stop being a jack of all trades and put all your energy on what you set out to do. If need be, bring in other people with requisite skill sets to help in those other areas.

Get the right tools for your small business

Aside from hiring skilled talent to help you run the day to day tasks, in the upcoming year, something else that will help you accelerate your growth is using the right tools. Tools here refer any software or hardware that can help you solve problems more easily or cost-effectively.

If properly used, these tools will increase your efficiency and help you reach your goals faster. Remember, the keyword is – right.

Pick only what you need; tools that can truly help you grow. If you have to, find an expert to help you pick out the most appropriate tools.

Outsource non-profitable activities

In some cases, it may make more sense to outsource certain activities than to keep them in-house.  If slow-paying customers are creating cash flow problems you may want to consider partnering with a Factoring company.

Accounts receivable factoring, also known as invoice factoring, allows you to receive immediate cash for your outstanding invoices in exchange for a small fee.  Depending on your particular circumstances, factoring may be an attractive alternative to time-consuming in-house collections.

Stay ahead of the game

Lastly and most importantly, don’t let anything fall behind. From your finances to technology and talent-wise, don’t be left behind in 2018. The digital world is evolving at a dizzying pace. Things change pretty much every day. In 2017, for example, we saw a lot of movement in payment technologies. Social media too witnessed a lot of changes.

If you want to fast-track your growth in 2018, you can’t let such movements escape you. Collect data at every step and use this data to manage your finances and adjust your priorities.

We hope you found these tips helpful.  Call or email us to learn whether invoice factoring is right for your small business. You may also click here to submit an application for a no-cost, no-obligation quote.

23 Dec
Pros and Cons of Buying and Leasing Business Equipment

business equipmentYou need new business equipment. But, you’re wondering whether it makes more sense to lease or buy the equipment. Which is the better option and why?  It all depends on circumstances. Sometimes it makes more sense to lease while on other occasions, you’d be much better off buying.

Below is a brief summary of the pros and cons of each option to help you make an informed decision.

Leasing Business Equipment

Advantages of Leasing

  • Lower initial expenses: This option allows you to acquire assets with minimal initial expenses.
  • Flexible terms: Leases are also easier to obtain and have more flexible terms compared to outright purchases.
  • Upgrade equipment more easily: Leasing is one of the best ways to deal with the problem of obsolescence because updating equipment is solely the responsibility of the lessor.
  • Leases are tax deductible: You’re allowed to deduct your lease payments on your tax returns as business expenses, effectively reducing the net cost of the lease.

Disadvantages of Leasing

  • You don’t own the equipment: Unlike with purchases, leased equipment has to be returned at the end of the lease term.
  • Obligation to pay for the entire term of the lease: You’re under obligation to make payments for the lease period even if you stop using the equipment.
  • Higher cost: In general, leasing costs more. Monthly payments are always higher than if you were purchasing the equipment.

Buying Business Equipment

Advantages of Buying

  • Ownership: When you buy office equipment,  it belongs to you. This can be a major advantage if the equipment has a long life.
  • Tax advantages: Section 179 of the IRA Code allows you to deduct the cost of certain newly purchased items in the first year.
  • Depreciation deduction: Some types of equipment can also be depreciated to reduce your taxes.

Disadvantages of Buying

  • High initial costs: Buying brand new equipment requires a lot of money. And, even if you plan to borrow the money, the bank will demand a 20% down payment. Couple this with the many financial restrictions that come with bank loans and you may find yourself in a dilemma.
  • Getting stuck with obsolete equipment: This is especially common with high-tech equipment. With technology changing every second, you risk getting stuck with out-of-date equipment just months or years after purchase.

To arrive at the best decision, consider the cost-effectiveness and tax implications of each option, and proceed with the option that best fits your needs and budget.

Are cash flow problems keeping you from upgrading your business equipment?  Invoice factoring provides an unlimited source of working capital without increasing your debt position. Call American Receivable at 1-800-297-6652 to learn more.

05 Dec
Choosing the Right Factoring Company for Your Business

 

Choosing the right factoring company is an important decision for you and your business. The right factoring company will help you maintain cash flow and grow your business while the wrong choice can leave you with a bigger financial gap than when you started.

Factoring has been around for centuries but has really only come to light as a legitimate source of cash flow for businesses in the last couple of decades. While bank loans are the most common form of financing for businesses, not every business qualifies for a loan large enough to cover their overhead. With invoice factoring, companies are able to maintain a steady cash flow without waiting the extended time for payment. Sounds great, right? But how do you know which company is the right fit for you and your business?

With factoring becoming a popular means of cash flow, there are many companies to choose from. Websites like Top Ten Reviews allow you to search for companies specifically in your industry. So, you’ve found a few that sound like what you need, what’s next?

The most important part of choosing the right company is understanding what they are offering and how their services will benefit you. In the age of technology, most companies have online chat services on their website for quick information, but to receive the quickest quotes and to get a more comprehensive understanding of the business and the employees there, it is always best to call. It’s critical that you are not only boosting your cash flow but are also comfortable with the staff to ensure a strong relationship.

Here are some questions to ask when speaking with factoring companies. Remember, you are interviewing them just as they are interviewing you.

What is the factoring companies application process?

Typically, most companies will have an online application form for you to fill in your information and attach any documents requested. Most common types of information required are: name and age of business, owner information, amount of receivables to be factored, Articles of Incorporation, accounts receivable and payables agings, and profit and loss statements.

As my business grows, does the factoring company have the resources to grow with us?

The purpose factoring your invoices is to allow your business to have the cash to continue to grow. It’s important to find an established factoring company that has the means to support your current and future funding needs.

What are your advance rates and fees?

Depending on your industry, advance rates and fees can vary among factors. Factoring companies make their money off of fees which is a percentage of the face value of the invoice. These fees can range from 0.8%-3.0%. The advance rate is the percentage of the invoice that the factoring company gives you upfront as they await payment from your customer. These advances can range from 75%-90%. It’s important to understand and compare across factoring companies specializing in your industry and the services they offer.

Are there any hidden fees?

Some factoring companies may charge a small fee for an array of different services. Hidden fees to look for include but are not limited to: application and due diligence fees, origination fee, annual fee, chargeback and wire fees and early termination fee. Be sure to also discuss if there is a monthly minimum amount you must factor and if so, is there a fee associated with not meeting that minimum.

Understanding the factoring industry and asking the right questions can lead you in the right direction to finding the right company for your factoring needs and ensuring success and growth for you and your business.

31 Oct
How to Create a Rainy Day Fund for Your Small Business

small business rainy day fundAs a small business owner, one of the best pieces of advice you’ll ever get is to never get too comfortable when things are running smooth.

In the same way traffic accidents occur unexpectedly and natural disasters occur without notice, your business can also suffer painful emergencies. When it does, you need to be in a position to protect your business and keep it running.

Having a healthy “rainy day fund” can help you get through those unexpected bumps in the road.  Here’s how to get started

Start saving today

Whenever you’re in a position to stash away extra money, you should do it. Even small contributions, made on a regular basis will add up over time.  Create a solid savings plan that will act as a reliable backup in times of emergencies. The best way to do this is to set up a savings account and keep it separate from your other business and personal accounts.

Cut costs

Avoid unnecessary and extravagant cash outlays, even when your business is solidly in the black. There’s nothing wrong with rewarding yourself and your employees once in a while, just do not make a habit of it. For your rainy day fund to grow, you will have to avoid any needless spending. Remain disciplined and focused on growing the account and you’ll be glad you did when the need arises.

Consider supplementing your income

Any wise entrepreneur knows that it’s important to diversify their investments. Don’t be afraid to try out other business ideas that you believe can bear fruit. It does not always have to be your own business; you can invest in other successful companies to grow your money. You might also look for ancillary services that complement your main business.

Make the most of the up times

It’s normal for any business to experience highs and lows. Some months you’ll generate more income, and in others, you may have a very profit margin. During the slow times, it might be impossible to make any contributions to your rainy day fund. So it’s a good idea to make larger deposits when your cash flow situation improves.

Save your tax refund

Finally, you may be lucky enough to receive a tax refund from time to time. The best way to use that money is to channel it directly to your rainy day fund.

Consider alternative funding methods

Before raiding your rainy day fund, ask yourself whether the need for extra cash is a temporary or long-term one.  If cash flow issues are an ongoing problem, a revolving line of credit or business factoring may be a better solution.

Give us a call at 1-800-297-6652 or visit us online at www.americanreceivable.com to learn more about our accounts receivable factoring solutions and whether they’re a good fit for your cash flow needs.

31 Oct
8 Small Business Finance Tips

small business cash flow folderRunning a small business can be tough, frustrating, and requires most owners to wear multiple hats.

While most owners are comfortable being involved in sales, marketing, production and even HR, many feel completely out of their element when it comes to financing.  While this is an area that’s typically better left to those with the necessary training and experience there are some basic things that every startup business owner should do in order to keep their company in the black.

Use dedicated business accounts

For your small business to thrive, it’s essential that you’re able to accurately track all of your business income and expenditures. To help you do this, you need to set up dedicated banking and credit card accounts for your small business and ensures there is no overlap between them and your personal accounts.

Have a budget and stick to it

You probably already have a personal budget. Keeping one helps you to prioritize expenses by separating needs from the wants. The same applies to your small business. Having a formal budget helps you prioritize your spending.

Prepare for big expenses

Don’t wait to be taken by surprise just because you underestimated your expenses. When creating your budget, it’s always best to overestimate your expenses a little in order to cover any unexpected cost increases and incidentals.

Be prepared for downturns and bottlenecks

Every small business has its ups and downs.  For some, the reason is seasonal factors that influence their market.  For others, slow-paying customers can have a negative impact on cash flow.  While seasonal fluctuations are easy to anticipate, cash flow problems can arise quickly and unexpectedly.  When they do, having an established relationship with a lender can be a lifesaver.  If borrowing from a traditional lender isn’t an option, you might consider invoice factoring to get the cash you need to meet your daily operating expenses during the slow times and to invest in new equipment, warehouse space or personnel.

Ask for professional help

Sometimes managing big numbers, accounts and cash flow can be overwhelming. Don’t be afraid to ask for help. Trying to muddle through can be disastrous for your business.

Have alternative investments

Don’t put all your eggs in one basket. Diversifying your investments will boost your savings plan while at the same time providing you with something to fall back on.

Manage your time

You’ve no doubt heard the saying “time is money”. The amount of time you put into your small business is directly proportional to how well and how quickly it will succeed.

Create a savings plan

Finally, the joy of every business owner is when you start making a profit out of your hard work. Being able to constantly and progressively save up is proof that your business is not hopeless after all. What’s more, savings are like water you store to be used in times of drought. A healthy savings account can get your small business through economic downturns, the loss of clients and other unexpected events.

Call American Receivable at about invoice factoring 1-800-297-6652 or visit us online at www.americanreceivable.com to learn more about invoice factoring and whether it’s the right solution for your cash flow needs.

17 Oct
ARC Continuing Relief Efforts

American Receivable Corporation is continuing relief efforts by offering special rates to businesses affected by Hurricane Harvey and extending those rates to those affected by Hurricane Irma. American Receivable has already aided eight Houston area small businesses in their recovery efforts in the last month with hopes to grow that number as it extends to Florida. Discounted rates start as low as .8% with up to 90% funding in 24 hours.

Peopling helping people is what keeps America strong. Call us today and let us help Texas and Florida rebuild.

 

16 Oct
5 Tips for Starting a Successful Business
 Starting a successful business requires a tremendous amount of time, energy, and in most cases, money.   So it’s important that you really enjoy what you’ll be doing.  The majority of startup businesses struggle during the first few years so you’ll need that passion to get you through the tough times.

Here are some other things to consider when starting a business.

Have a solid, written business plan

Most business owners spend months or even years mentally planning for the day they launch their new startup.  But putting everything down on paper will help you identify opportunities and potential pitfalls you may not have considered.  When creating your business plan, it’s a good idea to plan for the worst case scenario to make sure your expectations are realistic.

Hang on to your “day job” for a while

It can take months or even years before your startup company actually makes a profit.  If you’re currently employed, it’s a good idea to hang onto your current job for a while to keep money coming into your pockets until your new venture takes off.

Arrange financing for your new business

Even established companies experience slow periods and not having a financial safety net can be disastrous.  Startup companies have the additional problem having no credit history which is an essential requirement for traditional lenders.  Some private investors may be willing to lend you money based on the viability of your overall business model, but this too can take time and may come with prohibitively-high interest rates or other requirements.  Invoice factoring is a safe and effective alternative to traditional bank financing.  Factoring provides your business with almost immediate cash, and approval isn’t based on your creditworthiness.

Don’t fly solo

Starting a new business by yourself can be a lonely and frustrating experience.  Having a partner can help keep you focused and motivated.  And as the old saying goes, “two heads are better than one.”  Having a partner or small team who are invested in the success of your new venture can also help keep you honest about your expectations and provide you with encouragement when you experience the inevitable doubts and misgivings most startup business owners experience early on.

Develop a client base prior to launching your new business

Remember the film “Field of Dreams” about the baseball fan who heard voices telling him “If you build it, they will come”?   When it comes to building a customer base, things typically don’t  work that way.  Launching your startup business without customers can be a recipe for disaster, so don’t wait until after you’ve launched your business to line up customers or potential customers.  It’s better to have eager customers lined up, eagerly awaiting the launch of your startup than to try and land them once your business is up and running.

12 Oct
Is Your Business Prepared to Survive a Natural Disaster? 

Natural disasters can happen anywhere and at any time. Over the past several weeks the headlines have been dominated by three monster hurricanes and a 7.1 earthquake in Mexico.  If they’ve taught us anything, it’s that there’s no such thing as being over-prepared, and that goes for your business too.

Hurricane Harvey dumped record rainfall along the Texas and Louisiana coasts and the cleanup is expected to take months.  And the financial impact of the monster storm will undoubtedly be felt for even longer in the greater Houston area.  According to a recent marketwatch.com article, the Small Business Administration’s disaster relief program had received 2,117 applications for assistance from residents and businesses affected by Hurricane Harvey as of September 1.

Unfortunately, the SBA estimates that about 25 percent of small businesses that close due to a natural disaster never reopen.  The Federal Emergency Management Agency (FEMA) puts that number even higher, at around 40 percent. And for businesses that do reopen, the road to recovery is usually long and expensive.  The problem for most is the lack of a disaster plan. Here are three things you can do to make sure your business is able to get up and running again in the event it’s affected by a natural disaster.

Be Proactive Concerning Your Finances

Don’t assume that your bank and credit card companies will know that you’ve been affected by a natural disaster.  Instead, you should contact your lending institution immediately and let them know about the emergency situation. Most lenders will work with you to help you get back on track.  In some cases, they may waive fees or allow you to defer payments.

Low-Interest Disaster Relief Financing

As mentioned earlier, the SBA offers disaster relief for small businesses. One program provides loans to help businesses recover from property damages.  The program offers terms of up to 30 years, and interest rates of 4 percent or lower.  Another SBA program helps businesses recover from economic injury and provides loans of up to $2 million to help with expenses you would have been able to cover had you not been affected by a natural disaster.

Some lenders also offer special programs for new and existing customers affected by natural disasters.  At American Receivable, we’re offering discounted rates to businesses affected by Hurricane Harvey.   Our invoice factoring solutions require no lengthy approval process and funding in as little as 24 hours. Call 1-800-297-6652 or in the Houston area call 281-442-7000 to learn more.  You may also click here for more information.

Prepare for the Unexpected

As the old saying goes, “an ounce of prevention is worth a pound of cure.” Having cash reserves to meet your operating expenses for at least 30 days can help your business survive a natural disaster.

Unfortunately, this is easier said than done for small businesses that operate on tight margins.  If this is true for your business, now is the time to look for ways to pay off your existing debts and reducing your operating costs and put that money in a safe, interest-bearing account so it will be there in the event of a natural disaster.

For more information, check out these helpful disaster checklists and tips.

30 Sep
Is Your Business Prepared to Survive a Natural Disaster?

Hurricane Harvey flooding in HoustonNatural disasters can happen anywhere and at any time. Over the past several weeks the headlines have been dominated by three monster hurricanes and a 7.1 earthquake in Mexico.  If they’ve taught us anything, it’s that there’s no such thing as being over-prepared, and that goes for your business too.

Hurricane Harvey dumped record rainfall along the Texas and Louisiana coasts and the cleanup is expected to take months.  And the financial impact of the monster storm will undoubtedly be felt for even longer in the greater Houston area.  According to a recent marketwatch.com article, the Small Business Administration’s disaster relief program had received 2,117 applications for assistance from residents and businesses affected by Hurricane Harvey as of September 1.

Unfortunately, the SBA estimates that about 25 percent of small businesses that close due to a natural disaster never reopen.  The Federal Emergency Management Agency (FEMA) puts that number even higher, at around 40 percent. And for businesses that do reopen, the road to recovery is usually long and expensive.  The problem for most is the lack of a disaster plan. Here are three things you can do to make sure your business is able to get up and running again in the event it’s affected by a natural disaster.

Be Proactive Concerning Your Finances

Don’t assume that your bank and credit card companies will know that you’ve been affected by a natural disaster.  Instead, you should contact your lending institution immediately and let them know about the emergency situation. Most lenders will work with you to help you get back on track.  In some cases, they may waive fees or allow you to defer payments.

Low-Interest Disaster Relief Financing

As mentioned earlier, the SBA offers disaster relief for small businesses. One program provides loans to help businesses recover from property damages.  The program offers terms of up to 30 years, and interest rates of 4 percent or lower.  Another SBA program helps businesses recover from economic injury and provides loans of up to $2 million to help with expenses you would have been able to cover had you not been affected by a natural disaster.

Some lenders also offer special programs for new and existing customers affected by natural disasters.  At American Receivable, we’re offering discounted rates to businesses affected by Hurricane Harvey.   Our invoice factoring solutions require no lengthy approval process and funding in as little as 24 hours. Call 1-800-297-6652 or in the Houston area call 281-442-7000 to learn more.  You may also click here for more information.

Prepare for the Unexpected

As the old saying goes, “an ounce of prevention is worth a pound of cure.” Having cash reserves to meet your operating expenses for at least 30 days can help your business survive a natural disaster.

Unfortunately, this is easier said than done for small businesses that operate on tight margins.  If this is true for your business, now is the time to look for ways to pay off your existing debts and reducing your operating costs and put that money in a safe, interest-bearing account so it will be there in the event of a natural disaster.

For more information, check out these helpful disaster checklists and tips.

Sidebar: