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All market sectors have scams issues, but while in the latest economic downturn, there’s been an increase in invoice discounting scams. Factoring scams is increasing substantially for the reason that factors concentrate on large amounts and tiny prices. But before we can know more, it is essential to realize what invoice discounting signifies.

There are actually many circumstances for invoice discounting like invoice discounting, invoice factoring, a / r loans, or nearly anything else. Factoring businesses have existed since small business were around 5,000 years ago. It was the egyptians who unveiled invoice discounting to everyone and various goods like small business codes and administration polices below the leadership of Hammurabi,.

Factoring is a business technique that is hardly ever used by business owners. Possibly because it is not as popular in the U.S as it has been in europe for the last thousand years., it is actually genuinely the greatest maintained strategies in business and can necessarily mean the gap involving progress and failing.

Scams connected with invoice factoring is rather demanding to the authorities in this particular specialized region. To illustrate, any time a probability features a awful very own credit ranking, invoice discounting businesses need to be on alert. Why? This is what Might happen.

A invoice discounting corporation scrutinized just one prospect’s financial records then your invoice discounting corporation buy insurance agent asked for they send out the invoice and plan they wanted backed via development invoice discounting, generally known as invoice discounting. As soon as the plan was got the signatures in the typical contractor appeared like that relating to the subcontractor. Immediately after contacting the overall contractor it had been observed not a soul there acquired the actual one who supposedly signed the agreement. It was scams.

In addition, invoice discounting scams is also caused by make believe receipts becoming lifted and bought to factors. The fraudsters use technological innovation to perpetrate and control complicated scammers, specially in foreign locations. One of those cons involves the not for-transaction of enormous quantities of Value-added tax, which is called slide carousel scams having an effect on Entreaty not liable merchants and funders.

Factoring businesses have set up various methods of evidence by way of the shopper, and this is actually the key critical for steer clear of deceptive transactions.

Here’s yet another word of advice… Many of the even bigger businesses might also have employee lookup directories on their internet sites or major wrinkles, supplying a good

In the majority of conventional invoice factoring connections the prospect uses the factoring facility on a frequent basis. Dependent on the client’s needs, they may factor invoices on a weekly or month-to-month. On the flip side,

a spot factoring transaction is a simple invoice transaction. The factoring company confirms to buy a single invoice as a 1 time purchase.

Both the transaction and the finance relationship end once the invoice is purchased. Businesses that use spot factoring generally do it because they only need to finance a single very large order.

While spot factoring delivers flexibility to its users, it’s also much more expensive than standard factoring. There are a couple of reasons why this is the case:

Risk:

Invoice factoring companies see these transactions as more dangerous than conventional transactions. Usually, there are no additional invoices at hand (collateral) to add further security to the transaction. If the deal fails, the factoring company stands to lose their investment.

Managing:

Invoice management charges for spot factoring transactions are increased because they need to go through the same setup and underwriting methods as a conventional transaction.

Unsure volumes:

Spot factoring volumes usually tend to be unpredictable making it hard for factoring companies to plan their capital requirements and their revenues.

Minimum invoice size:

Most spot factors will only finance invoices that are larger than a minimum invoice size. Although this varies by factoring company, most require that the invoice be a few hundred thousand dollars or more.

The obvious benefits of spot factoring as a business financing solution is it’s versatility. It permits clients to work a single very large transaction without having to worry about any negative impacts to their cash flow. Visit NeeBo Capital today and get a low rate on spot factoring.

This photo represents all of the powerhouse social media outlets. Many business owners know of only the top websites such as face book, and twitter. However did you know over Tumblr has over 13 million unique visitors last July alone?!

Do you wonder if you have what it takes to compete in the social media marketplace? Who, after all, has the time or the budget to mimic Disney or Starbucks? Certainly not a small business!

Almost all marketers find that social media helps them stand out in an increasingly noisy marketplace. In fact, 88% of all marketers found social media helps get them increased exposure. Additionally, 72% of those surveyed saw increased traffic and subscriptions as a result of social media.

If you are overwhelmed by this information companies such as Bimo Marketing can manage your companies presence on all of these outlets. Outsourcing is only an option I would recommend if you do not have the spare time to do it yourself.

Only 28% of all marketers outsource any part of their social media marketing. Even though this is a 100% increase over 2010, marketers are still not sure how and when to outsource their social media. This could have to do with the relative inexperience of the audience (50% of the marketers have less than 1 year of experience).

Small business owners are the most likely to use outsourcing (34%), whereas only 24% of the self-employed have utilized outsourcing. Experienced marketers are also more likely to use outsourcing than the less experienced.

       Finding benefits factoring for a transportation company are very clear. Even though the economic pinch ended over a year ago and the economy is improving, most companies are still reluctant to provide business financing to transportation companies.

If you own a transportation business you can see the benefits of factoring because most transportation companies are cash flow intensive and need external financing to grow.

A major cash flow problem for transportation companies happens because customers typically pay their freight bills on Net 30 or Net 60 day terms.

However, the business needs immediate funds to cover driver payments, fuel, repairs and other business expenses. So the cash flow problem is created by having immediate expenses and delayed revenues. Initially, companies can cover that gap by using their own resources. Eventually these resources will run out, especially if the company is growing rapidly.

A Benefit of factoring to fix this problem is to use freight bill factoring, a form of financing that is designed for this specific cash flow problem. A freight factoring plan helpes the transportation company to get the equivalent of a quick pay. The transaction works by using an intermediary, called a factoring company, who buys the freight bill from the transportation company and pays for it immediately.

This enables the transportation company to get an immediate payment, while the factoring company holds the freight bill until it’s paid. The factoring fee for the service, varies based on how long it takes for the invoice to get paid, the financed volume and your customers commercial credit worthiness.

A major Benefit of factoring over other cash flow strategies is that it’s much easier to obtain than other forms of business financing. Since the factoring company is buying the invoice from your company, the most important requirement to qualify is to have solid customers. Apart from that, your company needs to be free of legal and tax problems.

Visit NeeBo Capital today and get the lowest rates!

Asset based lending, in particular, accounts receivables and/or purchase order funding, is can be a more attractive financing options than more traditional lending methods. A traditional banking facility of $50k that is fully deployed is not a benefit to a growing business, rather a hindrance.

With an accounts receivable line a company can better sustain growth, because the receivables line will grow with the sales of the business and effectively increasing the cash flow to meet payroll, make payments to suppliers and cover operating expenses, the business can focus on generating new customers and increase profits. The end result being a business that is more attractive to a bank, thereby, achieving the desired result. A traditional banking facility large enough to handle the financing needs of the business.  

However, this is becoming a more “accepted” and useful method to inject cash flow for a business. Many small to medium sized businesses that have survived this economic downturn, are finding access to cash and traditional banking lines of credit are not enough to support growth. A traditional facility is capped or has a hard limit, whereas a receivables/factoring facility can grow in parallel to the sales of the company, provided the credit of the debtors support the sales.

Qualifying for an accounts receivables line is based on the credit worthiness of the customer base and strength of the invoice trail. Because this is not characterized as a loan there is no debt shown on the balance sheet. This is a purchase of an asset or invoice at a discount and costs are calculated on the turn of the receivable.

The costs to a business can also be quantified by lost revenue and lost opportunities. How much do businesses lose each year to bad debt and write offs as well as lost sales or turning away of customer orders because of the operating capital the business has tied up in open receivables.

Many businesses utilizing a factor have decreased offsets and bad debt thanks to the attention paid to the debtors credit rating. Businesses are able to accelerate their cash flow, in turn, accelerating and increasing the number of orders/jobs fulfilled, directly increasing their bottom line and adding revenue to business. A banking line is not as quick or flexible enough to increase with the rapid growth a business may see. What is the cost to a business in missed opportunities.

Businesses today need access to cash when they receive the orders not when they have reaped the profits or have become profitable. Businesses today can become profitable with access to cash and financing. In transactions with 20% margins, what is more costly the 3-4% “cost” of financing or the loss of the 16% profit. Many businesses today are turning down opportunities, bids, purchase orders, new business because of the lack of available cash flow.

For more information visit NeeBoCapital.com. NeeBo Capital has a friendly staff to cover all of your funding needs. When you need funds they deliver. They are one of the most trusted cash flow providers in the United states.

 

Finding business financing for a transportation company can be difficult. Even though the recession ended over a year ago and the economy is improving, most institutions are still reluctant to provide business financing to transportation companies. This is can be a serious problem because most transportation companies are cash flow intensive and need external financing to grow.


One of the most common cash flow problems for transportation companies happens because clients usually pay their freight bills on Net 30 or Net 60 day terms. On the other hand, the business needs immediate funds to cover driver payments, fuel, repairs and other business expenses. So the cash flow problem is created by having immediate expenses and delayed revenues. Initially, companies can cover that gap by using their own resources. Eventually these resources will run out, especially if the company is growing quickly.

One way to fix this problem is to use freight bill factoring, a form of financing that is designed to fix this specific cash flow problem. A freight factoring plan enables the transportation company to get the equivalent of a quick pay. The transaction works by using an intermediary, called a factoring company, who buys the freight bill from the transportation company and pays for it immediately. This enables the transportation company to get an immediate payment, while the factoring company holds the freight bill until it’s paid. The factoring fee for the service, varies based on how long it takes for the invoice to get paid, the financed volume and your customers commercial credit worthiness.

A major advantage of factoring over other solutions is that it’s much easier to obtain than other forms of business financing. Since the factoring company is buying the invoice from your company, the most important requirement to qualify is to have solid customers. Apart from that, your company needs to be free of legal and tax problems.

NeeBo Capital’s Team

After weeks the team at NeeBo Capital launches their mobile factoring app. The basic factoring mobile site is the first app from the series, which is freely available. Users will be able to sign-up and access information on the go.

Bill Holiday, one of NeeBo capital’s founders has said they plan on releasing apps in the near future that will give clients the ability to log-in and track invoice payments. The company is looking to position itself as one of the leading mobile cash flow lenders.

Good Job Team!

Companies are constantly looking to improve the bottom line. Many top fortune 500 companies sell their accounts receivables to show cash on their statements. Medium and smaller sized businesses sell accounts receivable for cash to manage cash flow.

Accounts receivable funding or factoring is the sale of invoices at a discount. A method of financing that is used by businesses to raise capital quickly and improve cash flow without going into debt.

As your business sells a product or service to a customer, it creates an invoice. Usually, an invoice would itemize the unit sold, the price, and the terms of the sale. The invoice can either serve as a receipt if it acknowledges that payment has been received or as a bill if payment is due. An outstanding invoice may also be called an account receivable. Instead of waiting to collect payment, a business may elect to sell the invoice to a factor and receive an immediate cash advance. A factoring company is engaged in the buying of accounts receivable.

After receiving your invoices paid in full you will be charged a small “factoring fee” by the factoring company. Your customer will be notified of where to send their payments. The fee for the factored invoice will be deducted after payment is received from your customer. You do not have to factor all your invoices or change your billing process except for the payment address, and in some cases, the factor will have to submit the original invoices to your customer.

The factor will wait to collect from your customer. When the invoice is paid, the factor will retain a sum equal to initial cash advance plus applicable fees. The balance is then refunded to you along with any account statements. The exact factoring fee will depend on volume and time of payment.