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.
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Financing a business can be a challenge. The old tradition of walking into the bank to get a loan has become more complicated. You can no longer get a loan on a handshake. As a small business owner, you may find that you do not qualify for a bank loan. Banks require good credit and personal guarantees, which put you at risk if your business fails. Banks usually require a proven track record of up to 3 years or more. These criteria are impossible to meet when starting a new business. This can be discouraging, because financing is crucial to any business.
Cash flow is the life blood to a business. Operating expenses such as payroll, rent, office equipment, inventory, marketing, and the list can go on, require a business to have cash on hand to cover these expenses. How you finance your business and the cost of the financing affects your bottom line and your ability to grow your business.
Family and friends are one source for getting cash and are a popular strategy for start-ups. You should present them with a strong business plan in place, as well as some incentive for them to take the risk. Consider if it will be a loan, or if you will offer equity in the company. It is also important to provide solid projections to indicate when they might get their investment back. However, if you run into problems with cash flow, or needing more capital, you may have to find new options. The downside is that however you work it out, if the business fails, you may lose or damage the relationships.
Using a business credit card to finance your business can be helpful in emergency situations when you need cash, but using it for full time capital can be dangerous. The interest rates are usually very high and if you only make minimum payments you will never be out of debt. Falling behind on a credit card payment will put the business further behind and will damage the credit score of the owner. You can use it in temporary situations when your cash flow is problematic, but it will still be costly.
These are just a few of the options available in today’s market. As a business owner, consider “funding” your business rather than financing your business. Factoring or invoice factoring, has become more popular over the decades. This method of funding allows you to use your receivables to fund your business and better manage cash flow. Factoring is not a loan. You, the business owner, sell your receivables (invoices) to the factoring company. They in turn, give you a percentage usually within 24 hours and they wait for your customers to pay. This is especially helpful with slow-paying customers. The factoring company waits for the payment and then returns the balance to you, less fees previously agreed upon. Selling your invoices for cash, allows you to keep a positive cash flow for the needs of your business. Not all factoring companies are the same, do your homework. There are good companies in the marketplace, however some require long-term contracts and may require you to sell them all of your receivables.
American Receivable has been helping small business owners with funding and cash flow for 40 years. We work individually with each business owner to find the right solutions for their specific industry and needs. American Receivable is ranked #1 Nationally among factoring companies by multiple ranking agencies. We pride ourselves on excellent customer service, tenured and experienced account managers, and value our clients as our greatest assets. We are owned and managed by the original managing partners. Call American Receivable today and find out how we can benefit your business and save you time to manage and grow your business without the worry of cash flow and funding.
Factoring is not the same as invoice discounting (which is called an assignment of accounts receivable in American accounting – as propagated by FASB within GAAP). Factoring is the sale of receivables, whereas invoice discounting (“assignment of accounts receivable” in American accounting) is a borrowing that involves the use of the accounts receivable assets as collateral for the loan. However, in some other markets, such as the UK, invoice discounting is considered to be a form of factoring, involving the “assignment of receivables”, that is included in official factoring statistics. It is therefore also not considered to be borrowing in the UK. In the UK the arrangement is usually confidential in that the debtor is not notified of the assignment of the receivable and the seller of the receivable collects the debt on behalf of the factor. In the UK, the main difference between factoring and invoice discounting is confidentiality. Scottish law differs from that of the rest of the UK, in that notification to the account debtor is required for the assignment to take place. The Scottish Law Commission is[when?]reviewing this position and seeks to propose reform by the end of 2017.
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.
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.
People helping people is what keeps America strong. Call us today and let us help Texas and Florida rebuild.
American Receivable Offering Special Rates for Houston
American Receivable Corporation is now offering special rates for Houston. American Receivable is Texas Proud and is currently offering special rates to businesses in Houston needing capital to recover from Hurricane Harvey. While there is so much that still needs to be done, some of these businesses could be of great value to that effort. Houston business owners have been extremely generous in efforts to help the citizens of Houston persevere through this catastrophe. American Receivable would like to offer these special rates for Houston businesses needing quick access to capital to rebuild or continue operations.
The world has seen what a great state Texas is and how everyone has come together. Texas has proven that whether you were born in Texas or somehow ended up here, we are all working toward the same goal. Call us today and let us help Houston recover and rebuild. Nothing is too big for Texas or American Receivable.
Meet Jack Stieber and Brad Gurney, President and Vice President of American Receivable Corporation
Since 1979, Jack Stieber and Brad Gurney have been pioneers in the factoring industry. I sat down with them to get an in-depth look at where they started and what it takes to become #1.
First question that starts it all, how did you two meet?
Brad: I was interning with Jack’s dad, John Stieber Sr., my economics professor from SMU. He wanted to start a factoring company as he saw a real opportunity for one at the time. He sent me out to meet Jack to try and get him to factor with us as one of our first clients.
Jack: At the time, I owned a computer company, and my father asked me to meet with Brad and sell him one of my invoices. He was really having me vet Brad to see how well he did on the sales side of the business. A couple months later, my dad and his business partner decided to take a step back and that’s when I decided to come onboard and join Brad.
What was the factoring industry like at the time and how did that impact your first year of business?
Jack: To be truthful, I really didn’t know much about factoring when I decided to join Brad. My only knowledge about it was what I had learned from my father. At the time that we started American Receivable, there were roughly six other factoring companies in the DFW area.
Brad: Our first office also doubled as my living room. We had $40,000 and went right to work marketing. Luckily, the living room office didn’t last long and we were able to move into a converted storage closet “office.”
Jack: Our main focus those first couple of months was to get our name out there and promote factoring. Because it was a relatively new industry, people were unaware as to what invoice factoring was, and it became our job to not only educate them but to also sell them on the idea. With a lot of hard work, we were able to sign our first client within the first 2 months bringing in $20k of invoices.
Advertising and marketing was so different in the early 80’s than it is today. With such limited resources, what avenues did you pursue to drive business?
Brad: We spent a great deal of time putting together mailers to send to businesses in the area. I remember being in our tiny office stuffing envelopes and typing addresses until 2 or 3 in the morning. We also used the cold calling tactic as we tried to educate companies on our services.
Jack: I think our greatest success in marketing was when we realized that we needed to partner with banks. We were the first factoring company to partner with bankers in the metroplex. We developed relationships with many different bankers, some of whom have become bank Presidents. Today, relationships with bankers is one of the most important aspects of the factoring industry. With our marketing efforts and the advancements in technology, we now have over 1500 relationships in the DFW area.
Brad: Those relationships allowed us to shift our marketing skills from mass marketing to direct marketing of businesses with factoring potential.
Factoring is now a main source of cash flow for many businesses. When did the industry begin to boom?
Brad: Factoring really started to take flight at the end of the 80’s as the Savings & Loans crisis started to heat up. Essentially, we were in the right place at the right time. Because we had established relationships with bankers, they called us to help them with their customers. All of our efforts came to fruition in the 90’s as business began to explode. We had already expanded American Receivable to Austin and San Antonio in the 80’s, and in the 90’s, we were able to expand nationally.
With this amount of growth, how did business change?
Jack: With all the growth that happened, we were able to get out of our storage closet office and put down a real home base as well as hire our first employee. In 1996, we signed our first account to factor $1 million a month. This was huge for American Receivable as the factoring industry had really taken off and now we had multiple competitors. When the market crashed in the early 2000’s, business once again exploded, this time nationwide. American Receivable was doubling business every 3-4 years, increasing our presence in the finance industry.
What would be your selling point to someone interested in factoring and considering American Receivable?
Brad: American Receivable has been owned and operated by Jack and I for the last 38 years. We have a dedicated staff who is there to help you every step of the way. We offer some of the lowest rates in the nation starting at .08% and up to 90% funding within 48 hours with no start-up fees or hidden costs. We have also been ranked #1 by Top Ten Reviews for 3 consecutive years.
Jack: Our goal is to help small businesses succeed. In today’s time, cash flow is a big obstacle for smaller businesses. If we can play a part in helping someone be successful in a field they are passionate about, then we have done our job. It’s a rewarding feeling knowing American Receivable can be a part of their success.
American Receivable is a Dallas factoring company that provides services for businesses nationwide. American receivable has been in business for 38 years and has been ranked the #1 Factoring Company in America by Top 10 Reviews for three consecutive years.
How Technology Has Improved Invoice Factoring
In today’s time, many people cannot imagine running a business without the aid of technology, and the evolution of technology has changed the way we do business on a daily basis. Computers, software, apps, video, etc. have allowed companies to expand their businesses well beyond the borders of their home base. For factoring, it has created endless possibilities for how and where business can be done.
In the late 70’s early 80’s as factoring was just coming to light as one of the newest options to assist businesses with cash flow, everything, for the most part, was done by hand, limiting the amount of business that a factoring company could take on. Because computers were relatively new to the business world and incredibly expensive, many companies used what they knew best, pen and paper. It took hours to process schedules, write checks, post payments and create and sign contracts. Face to face time was not lacking and allowed companies to build relationships with their clients, but it limited the number of clients one could take on.
As technology advanced, the factoring industry began to explode. Software programs began to take the place of pen and paper, allowing for more information to be processed faster, giving companies the ability to take on more clients. The use of email was a game changer for all industries. Faster communication with their clients created an avenue for growth. While face-to-face time is often lost, factoring companies could now expand their factoring efforts across the US and beyond. Online banking has given clients the ability to be funded immediately, right into their bank accounts. Social media has given the freedom to advertise and reach mass markets reducing marketing budgets.
Technology is an ever-advancing force that will continue to allow companies and industries to push beyond what they ever thought was possible. Factoring has grown exponentially and will only continue to reap the benefits that technology has to offer benefiting small businesses across the world. While technology has its positives and negatives, in the world of business, it’s again for everyone.
A successful new business starts with asking the right questions…
Starting a business takes careful planning. It requires emotional and financial preparation and a conscious commitment to invest the necessary time to make sure the endeavor is successful. The stakes can also be high; Only about half of new businesses survive five years or more, and one-third survive 10 years or more, according to the U.S. Small Business Administration. Despite the many challenges of starting a business, owners say the rewards can be incredible. Read More “A successful new business starts with asking the right questions…”
American Receivable volunteers to help make back to school easier for kids in their community…
Tiffany Eitel, Vice President of Business Development and volunteers got up early Saturday morning July 19, 2014 to sort school supplies and put them into more than 1,000 backpacks for children in need.
School supplies, clothing and backpacks will be donated to Dallas area students for the upcoming school year.
More than two dozen volunteers packed the Dallas Children’s Advocacy Center’s warehouse to make sure the donations were ready to go for the group’s sort and stuff the backpacks day.
The event is a partnership between Dallas Children’s Advocacy Center and Comerica Bank. Dallas’ Fox 4 T.V is a proud sponsor.
The American Receivable staff is always pleased to give their time and resources to many community projects including The Dallas Children’s Advocacy Center. “Giving back to the community is something we truly believe in” said Tiffany Eitel. “Helping to make sure those less fortunate and particularly school children have the essential supplies is so important because they are our future scholars and leaders.”
American Receivable has been actively involved in their community for over 35 years and is proud to support the following organizations:
Ronald McDonald House of Dallas The Dallas Women’s Foundation
Austin Street Shelter The American Heart Association
Heroes for Children The Dallas Children’s Advocacy Center
St. Jude Hospital for Children The North Texas Food Bank
Children’s Medical Center – Dallas/Plano
Meals on Wheels/Visiting Nurses Association
American Receivable Corporation provides financing programs for companies experiencing cash flow problems. For over 35 years they have helped businesses large and small find solutions to their financing needs.
Has e-commerce killed customer service?
The internet has changed the way most of us go about our daily lives. From buying on-line to banking and bill paying, we no longer have personal contact with these services as we once did. The role of customer service has changed too, as customers rely on websites and automation to fulfill roles traditionally occupied by business professionals.
e-commerce has changed many of the most important elements in the customer service process: establishing contact and providing solutions to meet a customer’s specific needs. Without this contact many web-based companies rely on attractive web pages to create interest and draw customers in. These web pages must provide customers with sound information so they are satisfied enough to place an order. Much of this is done with photos, video and written explanations.
Since it is unlikely to have verbal contact, e-commerce devised a system of automated responses. Automatic e-mails or instant messages thank customers for ordering, and confirm that the order was received. Other automatic responses can inform customers of additional steps in the order or delivery process. These responses help to prevent any reluctance a customer might be feeling about their buying decision.
Fortunately, there are still many businesses that provide face to face customer service in addition to web based sales and service. The web cannot always substitute for direct customer interaction when dealing with a variety of situations.
Companies like American Receivable Corporation www.americanreceivable.com continue to provide hands on, personal customer services even after 35 years in business. Their individual approach to customer service has made them a pioneer in factoring in the Southwest and is why they have helped hundreds of small businesses succeed and prosper .