5 Tips For Picking a Factoring Company

Below we have included some points to consider when picking a factoring company. However keep in mind you must make the best decision in regards to your industry. These tips will greatly help your decision, post a comment on the bottom is you would like to add something we may have missed:


1. Ask the size of their clients/ client base – you do not want to be the factoring companies largest or smallest client. Simply because they may not have the ability to handle a firm of your size, or you may be too small of a factor for them to focus on.

2. Find out what industry they specialize in- Many factoring companies have experts in specific fields. If you are an aircraft parts broker, what can a freight bill factoring expert know about your industry? At NeeBo Capital we pair you with a professional in your field.

3. Know the terms- Many business owners overlook contracts because they need the cash flow immediately and like the rates offered. However all factoring companies have different terms. Be aware of credit limit charges, and miscellaneous fees.

4. Location- Know the location & hours of operation of your choice factoring company. If you do business on the east coast you have to understand a factoring companies staff on the west coast won’t be in the office until noon your time. Especially if your factoring company is dealing directly with your customers.

5. Do they work with you- before you start a factoring invoices agreement make sure they are willing to work with you. Ask the company for references, and trust your gut whether they are working with you or just want more business.
Please feel free to add to the list…

Do you have the Cash Flow to take advantage of Internet Advertising?

This article is for business owners who are looking for growth. Many of business owners I have worked with in the past are stuck in the past!

Today internet advertising is crucial to your business. Recent reports show its growth and growth is correlated with companies who have a strong cash flow strategy.  Analyst firm Bimo Marketing  is predicting double-digit growth through 2015. Expenditure on online ads will hit $60 billion that year — that’s almost double last year’s spending figure.
This is thanks to a surge in display advertising. U.S. online ad spending hit $26 billion in 2010. The new report assumes a continued growth in search advertising as well as in banner ads from large sites like Yahoo, Google and Facebook.

If you are a local business you must consider online advertising over the yellow pages and news papers. The evidence is clear, companies that are not investing in a strong web presence are missing the mark in 2011.

If you do not have the cash flow necessary to take advantage of the growing opportunity to get more business online. Then we suggest you visit NeeBoCapital.com and talk to a representative about a business loan.  Many

Finance a Freight Brokerage with cash now

Today Freight Brokers are adapting to industry changes and continue to earn money. However one factor has remained the same for freight brokers, and that is getting a line of credit or business loan. Many smaller sized freight brokerages continue to limit the amount of cash flow and growth they can build.
What do you do to address slow paying customers? A slow paying customer can put a real strain on cash flow. If you put pressure on your customers to pay you early you run the risk of losing business, and in the freight brokerage business drivers need to be paid on time.

Many freight brokerages spend too much time balancing reserve accounts to cover the gap between collecting 30 to 60 day receivables. But mismanagement of the ‘all mighty’ reserve account is a sure way to create stress and poor cash flow.

What we recommend at neebocapital.com is invoice factoring freight bills. By picking this route freight brokerages cover expenses early, pay drivers on-time, offer their buyers 90 day terms, and spend more time focusing on growth. The best part is you can get the cash in less than 24 hours and the fees are typically less than 1.59%.

How does this work? Who are these cash flow providers at neebocapital.com and how do they get freight bills paid so fast?

Good questions, Neebocapital.com acts as an intermediary between freight brokerages and customers. Neebo advances the capital against due invoices. This gives brokerages capital they need on hand to meet obligations, fees are not collected by the factoring company(Neebocapital.com) until after your invoices are paid in full. Freight factoring transactions are safer for freight brokerages because factoring companies may assume the risk on your invoices by advancing you the capital needed.

One of the big advantages of factoring invoices is that it’s easier to get than other forms of financing. To qualify for this solutions, your brokerage must work with shippers that have good commercial credit – this is the most important requirement. Also, your company must have a good track record and be free of liens or judgments. This solution is also available to startup freight brokerages, provided the company owners and operators have industry experience.


Do You Know The Definition of Factoring?

Within the last few decades business owners have looked for a better way to define factoring. Many of the definitions we used in the industry over the last 20 years are now obsolete. This article, provided by NeeBo Capital will explain in detail how many business owners in the US, Canada, and Europe Define factoring.

Before we can jump into the real definition of factoring we must point out that the term factoring has multiple meanings. There are a number of financial strategies business owners implement that involve factoring.


Another point to consider is the market is always changing, face book advertising  and Search Engine optimization did not exist as a business expense 10 years ago. Times changes and so do interest rates, lending options, monetary tools, and even financial strategies.


Because of this it is incorrect for us to get a single definition of “factoring.” Below NeeBo Capital has included the most current definitions of factoring;


As of 2011 the worlds defines factoring as- the ongoing arrangement between a seller of products or services on credit and a intermediary company(factor). The factor company purchases the sellers accounts receivable for immediate cash. The factor company may also collect the accounts for the seller, offer the seller bad debt protection by taking on risk of loss, and may also track payments and perform other administrative duties.


Some of the services provided by factoring companies that are commonplace are as follows. The factor company can keep your invoice factoring confidential or non-confidential to your customers, The choice is yours. The factor company will collect the invoices directly from your customer if you chose or let you collect. Some companies prefer to allow factoring companies such as NeeBo to Collect the invoice because it makes the sellers look more legitimate.


While defining factoring it is important you understand recourse. A factoring company will offer you an option called recourse, meaning they will NOT cover bad debts. If your customers does not pay on the invoices the factoring company does NOT take on the risk. Without recourse means the factoring company will assume risk. Making the decision to pick recourse or without recourse depends on the amount of customers and the creditworthiness of your customers.


Today the most common method of receivables funding is a deal where a factoring company continuously agrees to buy your invoices. Also the factoring company agrees to collect the bad debts and also provide the seller with detailed reports on the status of unpaid invoices.


Some company define factoring as invoice discounting. The two are very similar, however with invoice discounting the factoring company does not provide administrative ledger operations. Many larger companies prefer invoice discounting. By definition factoring through invoice discounting appeals to larger companies doing over $2 million in sales per year. Therefore the amount of capital involved is a lot higher.

If you would like to know more information to better define factoring please visit NeeBo Capital’s website. NeeBo defines all of the factors involved, all of the services offered and some of the lowest rates in the industry.


Tough Economy? Cash Flow Hero’s Find a Better Way…

Online business has pushed a lot of companies to invest cash flow into marketing campaigns….

Overspending in marketing is a common cash flow problem. If we do not have marketing, we do not have sales it is that simple. Some businesses bring in enough capital through word of mouth while the rest of us have to put up capital for marketing.
invoice factoring-hero
Traditionally spending on marketing is always in “the budget.” But what happens when your customers take longer than the 30 day terms you extended to them. Especially in this economy where invoices are taking 2 times the time to get repaid on, covering expenses can be a real downer. Waiting up to months for capital certainly is not part of “the budget.”

Plain and simple slow paying customers equal a decrease in your capital reserve accounts. The irony is if you tighten your credit terms you could lose customers. Covering expenses is your main goal, then the focus turns to expanding operations.

In todays economy almost all businesses are experiencing a lack of cash. This blog is aimed at providing you with info on what some of the industries cash flow hero’s are doing. When business is going great, we rarely plan for a downturn. As a business owner your focus is always on covering expenses and growth. The economy is on a strong path to recovery.


At NeeBo Capital we factor invoices for companies. However we have other solutions for business owners who are not interested in factoring. First we recommend you offer incentives for your buyers to pay on time, something like a 1.5% discount rate could do the job.

Second, we recommend you delay your incoming expenses to match up with your late or overdue invoices. By matching the payment cycle with your expense cycle you can take pressure off of your reserve accounts.

Keep in mind that with factoring you will not miss payroll or taxes. It is important to pay your employees and Uncle Sam. Also you can take advantage of paying your expenses early. With factoring your invoices you have capital on had to pay your bills early.

Invoice factoring fast-tracks your revenues by using a financial intermediary such as NeeBo Capital who advances you funds against your slow paying invoices. As the middleman the factor company keeps the invoices. It is also up to the factor company to ensure the invoices are paid back in full. The factoring company does not charge you a fee until the invoice is collected in full. Factoring companies charge a fee based on volume.

Keep in mind that factoring is a tool hero’s in the cash flow world are using to gain capital on hand to grow operations. Do your research and discover what works best for your company. Keep your business involved in social groups online and you may meet business owners in similar situations to yours. The economy is on a recovery so it is best to have your company to be in a position to expand.

What makes some inventors successful over other inventors?


Necessity is the mother of all inventions, specially during these quickly changing times. The most successful innovators today are the people who are relevant!

We do not need to reinvent wheels, we need wheels that can answer emails and tweet today. The most successful innovators make inventions that are relevant to the mass. If you don’t continuously re-imagine what you ideas, you are in danger of quickly becoming obsolete.

The question I get a lot is ‘ what is a hot idea to capitalize on?’ I always reply “do you need to invent something completely new, or are you looking for a more practical path?

Many of the most successful innovations were not brought about by outright inventions but rather by reconfiguring existing technologies. They represent a refreshing shortcut for today’s businesses. Our Company NeeBo Capital is a relevant, innovative Factoring Company!

The most successful innovations are the ones that we stop noticing almost immediately.” The boldest innovations achieve this integration not by being market driven — fulfilling existing demand — but by being market driving — creating new demand and advancing the way people live.”

Factoring Invoices is the Canadian Alternative Financing Strategy

What is an alternative financing strategy? An increasing number of business owners in Canada are beginning to discover what so many American business owners already know. Factoring invoices as a cash flow fix is becoming an increasingly popular strategy.

Canada’s business owners are recovering from a hit taken in 2010. This has an impact on accounts receivables, customers are slower to collect on their accounts receivables, thus they are later on paying invoices. Prior to the downturn Canadian business owners had stacked up their investments in receivables and inventory. This puts Canadian business owners in a squeeze because their money is tied while their customers are taking longer than the 30 days per term provided. This also puts pressure on management to focus on cash flow management rather than focus on growing their business.

The factors involved in this mess are easy to understand. You have your suppliers, our land lord, and your faithful employees. Each of them expect to get paid each month, and when your funds are overdue receivables they can take up to 30, 60, or even 90 days to collect.

So what is a company to do? Go to the bank and hope to get approved within months, or go for venture capital? Neither Canadian business owners are turning towards factoring invoices. By entering into factoring invoices Canadian companies can establish an immediate cash flow, almost within hours. In the United Stated factoring invoices is referred to as “accounts receivable financing” or “invoice discounting.”

Factoring invoices is rather simple. You can refer to Neebo Capital to see factoring infographics that display factoring visually. As a business owner you deliver your invoices to a factoring firm (Neebo Capital) who delivers you funds the same day for a single invoice or a group of invoices.

Accounts receivable financing is not a loan, you do not give up ownership of you business. In fact you get instant access to money with as little as .59 to 1% charge from the factoring company. The factoring company also collects on your invoices for you, they carry the risk of the receivables for you.

Canadian business owners realize the factoring benefits outweigh the minor costs. Instead of waiting weeks for a bank to give them a decision they are turning to factoring companies to see who will give them the lowest rate.

Within 24 hours you can receive up to 80-90% advance on your invoice face value. The factor company does not charge you a fee until the rest of your invoices are collected on. Don’t waste any time and take advantage of this alternative financial strategy that many Canadian business owners already are. Visit Neebo Capital for a free no obligation financial check up. Don’t consider bankruptcy or giving up ownership of your business without discovering what Canadian business owner already have.

Get A Free Financial Check-up Today

Picking The Right Factoring Company

We all agree, shopping around online for the greatest deal is a smart thing to do, however when is  it too much when you are looking for a good factoring company.  Often we get prospects who tell us they have submitted applications to multiple factoring companies. This is perfectly fine it is in your best interest to find the best rate!

Now most sales people will feel the pressure when you tell them they are not the only game in town. For a couple reasons. Obviously, they hate competition. But more importantly, they understand that few prospects have the time to manage such a large number of applications efficiently. Many times it is easy to get confused with what factoring company promised what, who has the best terms for you, and what company will work best for your business. Filling out multiple applications to factoring companies may not be the best approach.

Keep in mind it is in your best interest to evaluate each factoring company for the best outcome for you, but filling out applications like a wild man is not the best approach. The best option is to submit applications like a wild man just  one day. This will be your prospecting day, after getting calls and fining out information then pass through the evaluation phase. Again do not do this if your back is against the wall, put the pressure on the factoring company not yourself.

As soon as you start to get in touch with the factoring salespeople try your best to learn from the phone call, play the field and see what options are best for you.  Try the following questions to ask the factoring companies:
1. What is the largest client they can work with? What is the smallest?

2. Do you specialize in any industries?

3. How long are the contract terms for?

4. What do you know about your particular industry?

Then, based on your phone interviews, select the top company and get serious about submitting information. If you want to use competition to your advantage, there is nothing wrong in telling the sales person that you have interviewed a number of factoring companies but only applied with the top two (or three) to see who gives you the most competitive proposal. This will show that you have carefully evaluated companies and selected the top contenders. This shows that you are a sophisticated buyer and will probably get you better proposals than just sending an application to anyone and everyone you meet.

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