Small Business Finance – Page 5 – NeeBo Capital Blogs

Obtaining Commercial Capital Through Spot Factoring

If you have a business emergency or if you want to put money into a potentially high-profit investment, it makes sense to use your commercial capital. But if the money isn’t readily available, there’s still a way for you to get it right away hassle-free. You can do this through spot factoring.

How It Spot Factoring Works

First, you need to choose an invoice that you’re going to issue to a customer and then find a factoring company that offers spot factoring. As soon as they verify the invoice, they can then provide the emergency funds you require.

You then invoice your customer like you normally would. But this time, you just add a notice of assignment to the invoice. This will state that the customer should give the payment to the factoring company instead of paying you. You then send the factoring company a copy of the invoice, along with an acknowledgement of the debt or a delivery note. In return, they will transfer a certain value (anywhere from 70 to 85%) of the invoice. Once the customer makes the payment later on, the factoring provider gives you the rest of the value of the invoice minus their fees.

Key Points

Spot factoring is a bit different from the regular form of factoring that most factoring companies offer. So if you are familiar with the traditional factoring methods, with spot factoring you need to be aware of certain differences. They are as follows:

It’s essentially a “one and done” deal. For traditional factoring, usually the factoring company advances the money for several of your top invoices, or sometimes even all of your invoices. With spot factoring, even just a single invoice may be required and there’s no contract required. In traditional factoring, often there’s a contract that covers a longer period of time. This usually lasts for half a year up to a year and a half.
Not every factoring company offers this service. Most factoring companies prefer regular customers—in this sense they’re just like every other business. So if you want to make use of spot factoring services, you may have very few options.
In general, spot factoring is much more expensive. This is understandable, since you need to cover the cost of the credit checks and background searches, and they can’t be spread over a lengthy contract.

Getting commercial capital quickly and conveniently is the very essence of factoring. With spot factoring, everything’s stripped down to the basic concept of using invoices as collateral for cash advances. It’s for a single invoice and you get your money quickly and use it for whatever purpose.

The important thing to keep in mind is that you need to find the right company that offers spot factoring services. That way, you will be assured of a fair business transaction. For more information about spot factoring services, check out www.neebocapital.com.

2014 Business Working Capital Lines

Special Kinds Of Loans

Small businesses often have trouble meeting their cyclical and short-term working capital needs. Special types of loans can be used to finance small businesses during seasonal slumps and fluctuations, finance the immediate costs of doing certain kinds of construction, supply and service contracts, or purchase orders. There are a number of kinds of loans that small business owners can use to maintain the existence and growth of their small businesses.

Working Capital Lines

The working capital line is a revolving line of credit (and it can sometimes go up to millions of dollars) that offers short-term working capital for small businesses, and there are a number of financial institutions fluent in these types of loans. They are not exotic or unique. They are not difficult to comprehend. These kinds of loans ensure that wheels stay greased on small businesses – so that businesses can keep operating and growing. Businesses that typically use these lines offer credit to their customers or have possession of inventory as their biggest asset. Disbursements are often based on the sale of inventory or the size of a borrower’s accounts. Repayment then comes from the sales of inventory or the collection of accounts receivable. The actual structure will be negotiated with a lender. There may be additional monitoring and servicing of the collateral, and the lender may charge additional fees to the borrower.

Seasonal Line Of Credit Program

A seasonal line of credit program can help support the process of building up labor, materials, accounts receivable, or inventory beyond the normal usage for spikes or slumps, as in seasonal fluctuations. However, there might be some requirements for the business to get the loan, such as having a one-year history or being able to demonstrated a seasonal pattern. Usually, a financial institution will offer the kind of loan, and they will allow for other types of loans to co-exist.

Contract Loan Program

A contract loan program can finance the cost associated with most purchase orders, subcontracts, and contracts. Proceeds can often be disbursed prior to the work commencing. If it’s used for a single subcontract or contract when all the expenses have been incurred prior to the buyer paying, it usually will not revolve. If it’s used for more than one subcontract or contract, or for subcontracts or contracts where purchaser pays prior to all the work being done, the line of credit might revolve.

What kind of loan is right for your small business? Getting the work capital you need to grow and expand your business sometimes just can’t happen without working capital lines. If your business has had a successful history, and you have assets to use as collateral, it can be very easy to get a healthy working capital line. The problem is when small businesses don’t have many assets or a strong record of success. Those small business owners might find it more difficult to secure a working capital line.

Need a working capital line for your businesses? Click here to go to our lending site NeeboCapital.com

Fast unsecure business loan | We offer unsecured business loans upto $300k

Unsecured business loans are simpler to get than the other secured kind because your company doesn’t need to put up any collateral.

Let’s take a look at the pros and cons of an unsecured business loan.

If you are creating a new company, or if you are expanding a current business, you may think about financing from a third-party, like a company loan. Let’s look at a couple kinds of business loans: unsecured loans and secured loans. A business loan that is secured is often secured by collateral, and a business loan that is unsecured has no backing in that way. Getting a business loan that is unsecured has pros and cons attached to it. Let’s take a look at them.

An Introduction to Unsecured Business Loans

Lenders that give business loans that are unsecured won’t need your company to give collateral to get the loan. However, you will still need to meet some credit and income requirements. Unsecured business loans may start at $5,000 and go all the way up to $500,000, whatever the standing of the company and the credit rating of the company. Some lenders can also offer companies a sort of unsecured line of credit. Keeping your business in good standing, and having a lot of income, will go a long way in helping you to get favorable terms for an unsecured business loan. Lenders want to see that the company is solvent, and is bringing in a lot of cash flow, and they are going to be more likely to lend to your company, and at better interest rates, if that is the case.

Pros

Unsecured business loans are simpler to get than the other secured kind because your company doesn’t need to put up any collateral. Even though lenders can take the collateral if your company defaults on a loan that is secured, a lender won’t be able to seize any your business’ property if it doesn’t pay back the loan on an unsecured loan. However, a lender can still get a court injunction to attempt to do this. If your company has a bankruptcy filing, the court may get rid of all of the unsecured loans, but it won’t usually discharged the loans that are secured.

Cons

Since unsecured loans are riskier for lenders, they will usually levy worse interest rates as opposed to business loans that are secured. That could mean that your company would pay more money over the lifetime of the loan that it may have put up for a comparable secured loan of an identical figure. Interest rates that are higher could also make the single loan payments balloon. Furthermore, business loans that are unsecured are more difficult to qualify for, and they are harder to actually make happen. If your company has a bad or blank credit record, the lender could opt to not give permission for the application you have put in.

Thoughts

Going into default on any kind of business loan, and that includes an unsecured business loan, will hurt the credit rating of your business. A court may get rid of the unsecured loans in bankruptcy, it won’t discharge the loan if a creditor has before gotten a judgment on your company. Some lenders can offer loans that are partially secure.

Need a fast unsecured business loan? Click Here

Local Inventory finance | We offer fast Inventory financing

We offer up to 65% on Inventory

Inventory financing is when a credit line or quick loan is made to a business so it can buy products. The inventory acts as collateral for the loan if the company doesn’t sell its product and is unable to make the payments back on the loan.

Inventory financing is great for businesses that have to pay their suppliers in a shorter pan of time than it would take them to sell their products to customers. It also offers an answer to ups and downs that are seasonal in cash flow, and it can aid a business in achieving bigger volume of sales – for instance, by letting a company get more inventory to sell throughout the holiday season.

Lenders look at inventory financing, or they could anyway, as a kind of unsecured loan because if the company can’t sell the inventory, the bank may have a problem doing it too. This truth may partly explain why, in the fallout of the credit crisis in 2008, a lot of companies found it a lot harder to get inventory financing.

Why should your company consider inventory financing?

A lot of companies, big and small, are not taking advantage of the inventory financing. These things are made to offer each part of the supply and distribution chain with the chance to expand, take on new risk, improve their cash flow, and make their product more visible.

For companies that manufacture products, this can create some added value for the dealer relationship by offering a financial solution to improve the profitability and liquidity of the business. Manufacturers can also be enhanced by the improved cash flow and profit because of the customized program design by some companies that offer inventory financing. Consistent and improved cash flow is possible.

Financing solutions can additionally help a company balance their sheets by transferring some of the risk of failure, enhancing compliance control, and the upkeep of accounts receivable management to experts in inventory finance. The capital that comes in can be used in a more productive way to enlarge the sale and range of products, and to take advantage of the spikes in seasonal sales.

What are some of the benefits to the manufacturer of inventory financing?

Inventory financing lets manufacturers concentrate on their core business, it enhances the dealer network financial quality, leads to production schedules that are a lot smoother, results in enhanced cash flow, and it brings more product into the market for sale, which contributes to future sales growth.

Consider inventory financing if you’re a manufacturer that is having trouble bringing enough of their products to the market. There are experienced and capable inventory financing companies that can handle all the details and particulars that are you may be loathe to take on, when it comes to your business.

There are customized programs that can be tailored to your business that can help it grow and profit, even if you’re stuck as far as moving your business forward.

Need Local Inventory finance? Click here to visit our page.

Invoice factoring for staffing companies | We offer fast factoring for staffing companies

factoring for staffing company — All you need to do is send in your weekly timecards and invoices, and you can get between 80% and 93% of the cash in your account the very next day.
Contact us now.

There are a lot of businesses out there that fund payroll and growth for staffing companies. There are multiple businesses all across the U.S. and Canada that deliver reliable, timely service to their clients. You should choose a company based on the ability to provide maximum cash flow, so that you can bill today and get paid in full the next day, one that lets you eliminate bad debt, such that you get free credit protection on your customers, one with full payroll services, one that accepts young companies, one that doesn’t have a minimum volume required, and one that lets you only pay for what you use.

When you sign up as a client at a great company, there should be a program that is tailored and works for you. It should provide as-needed cash flow, maximum cash flow, and cash plus total services. As-needed cash flow means that if your cash flow happens to suffer sometimes from peaks and valleys at seasonal times, or because of customer frugal behavior, or unexpected orders, then a cash program can really do the trick. When you have to have the cash, send in your timecards and invoices on customers that are credit-approved. The cash will be transferred, minus the fee for the service, and it will be transferred into your account the very next day too.

A company should also provide maximum cash slow so that if your company is expanding, you will need to get maximum liquidity from your assets. You can join up for maximum cash flow with a great company that will help you get that much-needed cash right when you need it. All you need to do is send in your weekly timecards and invoices, and you can get between 80% and 93% of the cash in your account the very next day.

When you need a complete A/R and credit office, and you want to cut your expenses and eliminate bad debt, while reducing overhead, then go with a company like this. You need to concentrate your staff on building a business, not making calls for collection. Cash plus total services offer a complete working solution for administration and working capital. You can use a full-service approach if you want. Even more than any other package available, you will get the resources you need to help grow your business. You can start the process, and the company can take it from there afterward.

Now that you’ve had a thorough introduction to invoice factoring for staffing companies, and what it can offer, you’d be wise to hook up with an invoice factoring company right away to get the money you need for your struggling staffing company business. If you’re going through a hard time with your own staffing business, it may be the only way to get the much-needed working capital you need to survive. It is imperative that your business doesn’t suffer since there is a lack of working capital, and you need to secure that through a reliable company.

Need factoring for your staffing company? Click here

Sub-Contractor Factoring Is Tough | We offer Sub-Contractor Factoring

Sub-contractor work can be tough if you don’t have the right sub-contractor factoring company to help you out with your business and financial obligations. Making payroll accounts and paying suppliers can be a financial strain on the business, and it can be almost impossible when you have to wait one to three months to get paid for a job you’re doing.

The scenario is pretty common in most industries, and it is especially common when a small or mid-sized sub-contractor doesn’t have enough cash reserves to float the payroll or purchase supplies or equipment. It might slow the business down to an absolute halt. That can be really tough on the business for sure, and it might make the sub-contractor go under before they can afford to finish the job. That’s why it’s so important to have a sub-contractor factoring company behind you ahead of time so that you can get backed up in the event of a financial emergency.

A lot of sub-contractors would just try to apply for a line of credit from a bank, or another financial institution, but that would not be the wisest move. They can get the best terms with sub-contractor invoice factoring. They can get a serious cash advance to help finance the ongoing costs of expanding and paying for their payroll and equipment costs, or whatever kind of related business expenses are related to that industry. A financial institution might require construction subcontractors present several years of financial statements, and if they get approved, it might take several weeks or months to get the money that’s necessary to build the business. No one should have to go through that in order to get the money they need to grow their business.

Invoice Factoring For Sub-Contractors Is A New Solution

Sub-contractors can make payroll and pay their suppliers without the need for a loan. An invoice factoring plan can be just the right solution for you or your newly budding small company. Sub-contractors should be able to get paid immediately for a job. Immediate payment has a lot of benefits like immediate cash flow, enhanced efficiency, and it enables you to expand your sub-contracting business very quickly.

Factoring Works Really Simply Too

All you need to do is create your invoices for your completed jobs. Then, you sell your invoices to a factoring company who will give you cash immediately for them. Note, you don’t have to have completed the job yet, but if you have the invoice, and you are committed to completing it, you can probably still get an advance from a factoring company. If you are up to the task of finishing a job, but you don’t have the resources or equipment, a factoring company might be able to help you with the money you need to get started. It can be that simple to get your feet off the ground if you are a newly starting company that just can’t meet its financial demands to get started quickly.

Medical Receivable Loans | Fast Funding for Medical Companies

Unexpected increased expenses tacked on to your medical practice can create the need amongst business-owning physicians for medical receivable loans. A lot of physicians relish the idea of turning their medical accounts receivable into instant cash, but they just don’t know the receivable financing program to pick. Physicians can ease the pressure on profits that they face with medical accounts receivable financing.

Unexpected increased expenses like malpractice suits and the current economic recession and profits squeeze can make medical accounts receivable financing a necessity for many physicians out there. Plus, the cash that you get with a medical accounts receivable financing program can go toward other things like modernizing facilities, taking advantage of cash discounts, improving credit ratings, small business expansion, correcting cash flow issues, staffing, inventory, and advertising. If you need to boost your business, or you need a stream of cash to flow in, then consider this useful approach to improving, propping up, or expanding out your physician practice. Physicians loans and healthcare facility financing are closely related, and they might be provided by the same company, but they are distinct from medical receivable loans.

A lot of medical professionals out there say that dealing with their accounts receivable are one of the biggest challenges they deal with. Medical accounts receivable are often the biggest asset shown on the balance sheet, but these dollars are often held back for long periods of time. That’s unfortunate for medical doctors who want to put this cash to use, but feel it is tied up and unavailable. The move toward medical accounts receivable has only risen in recent years because of the long process associated with third party payor reimbursement.

Sometimes, loans can be based on medical receivables. However, the majority of the time, the sale of receivables occurs. That doesn’t create any additional debt on the balance sheet. It lets you get a big portion of your receivables in a quick way. Sometimes, you can secure great deals like getting up to 80% of the estimated net medical accounts receivable.

Some medical practices could be required to have a specific monthly billing amount each month. Check with the medical receivable factoring company to see what kind of amounts they require your medical practice to bring in each month before they’ll start taking your application for a medical receivable loan seriously. Medical factoring companies don’t often stop at just physicians, though. Sometimes, they provide loans to laboratories, ambulance service providers, radiology centers, MRI clinics, rehabilitation/physical therapy companies, home healthcare companies, hospitals, and nursing homes. It’s a good idea to work with a company who specializes in your field, medical practice, and work with them to get your loan going. You might not want to work with a company who doesn’t have a specialty in your kind of practice because it might not run as smoothly. There are an abundance of companies that provide medical receivable factoring for small and medium-sized practices, and it’s no problem finding a number of them to make a selection from.

If you have Medical Receivable Loans and need Fast Funding for Medical your Companies Click Here

staffing factoring – We offer fast staffing company factoring

fast staffing factoring — Staffing companies use factoring companies to have consistent and reliable cash flow fast. This is primarily because the staff, and the payroll, is the primary cost of doing business.

Do you have a temp staffing company? Do you need immediate funding? Funding payroll and growth for temporary staffing agencies has been a niche specialty of many invoice factoring companies for a number of years. There are all kinds of financial instruments, and one of those extends to staffing companies.

If your cash flow suffers time and again from seasonal sales spikes, or peaks and valleys, customers tightening their belts, or unexpected orders coming in, a cash only program might just do the trick. When you require cash, just send the invoices into the staffing company factoring company, and they’ll transfer the cash, minus any fees for their service, into your account the day afterward.

If your company is growing, and you need maximum cash flow, you might want to get maximum liquidity from the assets you have. You can also sign up for maximum cash flow at many of these companies too. You will just send your weekly timecards and invoices in, and you can get a percentage of your cash, up to 95% sometimes, the next day. Once you’ve picked a company for all of your factoring, you will rest easy knowing that one company can handle most of it. Plus, these same kinds of companies can help out with all types of financial instruments like eliminating bad debt, full payroll services, maximizing cash flow, helping young companies thrive, and more. Plus, no minimum volume may be required, depending on the company you choose. That is great for young and struggling companies. Plus, there are a lot of companies that let you pay only for what you use.

There are some serious financial institutions that provide invoice factoring services to staffing companies all across the U.S. and Canada. Some of these companies are international, and they go beyond the borders of the U.S. and Canada, but most of these companies just operate in the North American continent, and that area. These companies should be leaders in providing working capital to staffing companies such as yours if you’re going to choose them to help fulfill your needs. Don’t choose a company that hasn’t had a number of years in the industry. The credit lines that these kinds of companies can provide allow clients to get immediate access to funds that would normally have been tied up in accounts receivable, eliminating a delay of payment that could last between 30 and 60 days. No company wants to wait that long to get their hands on their money.

Staffing companies, by their essential nature, have to have consistent and reliable cash flow. This is primarily because the staff, and the payroll, is the primary cost of doing business. Staffing companies usually pay their employees each week, and that adds to the cash flow stress. The balance can be maintained when the clients for the staffing company pay on time, but that’s hardly ever the case. You need a company that will back you up as far as staffing company factoring. Choose wisely, and your staffing company will run a lot more smoothly. If you don’t choose wisely, it won’t run smoothly at all.

Need fast factoring for your staffing company? Click Here

Factoring – sell the receivable

Factoring is a great way that businesses can get a lot more money than the banks can give to them. Factoring is a kind of financial transaction where a business will sell its invoices to another party, and this party is referred to as a factor, and the factor becomes a verb, as in factoring, to help explain it. It’s a term that sums up one way of businesses getting cash for their unpaid invoices. It’s a way of doing a cash infusion for some businesses when cash is available no other way.

In factoring, the three parties that are involved directly are the entity who sells the receivable, the account debtor, and the factor. The receivable is basically a financial asset, and it’s connected to the liability of the debtor to pay. The seller will sell one, or even more, of his invoices, which are also called receivables, at some kind of a discount to another party.

The receivable sale basically transfers ownership of the receivables to the factor, and it indicates that the factor has gotten all the rights connected with the receivables too. So, the factor will nab the right to get the payments offered by the debtor for the amount of the invoice, and, in factoring that is of the nonrecourse kind, will have to deal with all the loss if the debtor doesn’t pay the invoke completely because of his or her inability to pay financially. Often, the debtor will be notified when the receivable is sold, and the factor will bill the debtor and then make the collections. In non-notification factoring, however, where the seller collects the accounts that are offered to the factor, as an agent of the factor, also happens.

Factoring has had a long history. It is by no means some newfangled way of doing business that has become more popular after the millennium like so many bad financial practices. It is a legitimate practice, and it has gone back several hundred years. It’s also by no means illegal or wrong. It’s a standard way of doing business. In some industries, it’s the main way of doing business.

Accounts receivable factoring is also called accounts receivable financing in some circles. It’s a quick and flexible source of funds for businesses. They just use your accounts receivable as the security for the funds that you are going to get. Some companies will even let your credit line grow in proportion to your sales cycle. Companies might fund as little as $5,000 in a month, or they might fund up to $10 million for larger companies. The loans are dependent on the flow invoices coming in, so there is probably going to be a reasonable basis for the loan, whatever amount it is.

You can check out the receivable financing rates at the company websites you are considering getting loans from. You can also check out their other qualities that they have too. It might be the only way for your company to get funds.

What is Factoring of Receivables?

Receivables financing is sometimes called factor, and it’s a method that businesses use to convert their sales that were done on credit to an immediate cash flow. This is the preferred financial tool in getting liquid working capital for businesses of all types and sizes. The credit line that can be received is based on the customer’s financial strength, that is the buyer, and not the client, that is the receivables seller.

Factoring is a kind of financial transaction, and a business will actually sell its invoices to another party, and this party is referred to as a factor, for a discount.

The three separate parties involved are the party who sells the receivable, the customer, and the factor. The receivable is basically a kind of financial asset that’s connected with the liability of the debtor to pay the money back to the seller, and it’s often for work that’s done or goods that are sold. The seller will then sell at least one of his invoices, that is, the receivables, at a discount to another party, which is called the factor, and the purpose is generally to get cash.

The receivables sale basically transfers the ownership of the invoices to the factor, and that means that the factor has all the rights that are connected with the receivables. Basically, the factor will get the right to get the payments made by the debtors for the invoice amounts and, in a certain kind of factoring known as nonrecourse factoring, he will also have to bear the loss if the debit never pays the invoice because of a financial instability to pay it. The account debtor might be notified of the invoice’s sale, and the factor will bill the debtor and carry out the collections. There is also non-notification factor, where the seller will collect the accounts that are sold to the third party factor, as the factor’s agent, and that also happens.

The origins of factoring lie in trade financing, especially international trade. Factoring might have originated with ancient culture in Mesopotamia, and it is by no means something new. There were rules of this process that were written into Hammurabi’s Code.

Factoring as a part of business was done in England even before 1400, and it started in America with the Pilgrims too, in the early 1600s. It seems to be nearly related to the early merchants of this country. Factoring has changed over several centures. There have been changes in how companies are organized, technology, the advent of the telephone, and the advent of the computer.

Factoring is generally a method to obtain cash. Sometimes, the cash balance of a company will be insufficient to meet the current needs and obligations that they have, like contracts or new orders. Sometimes, there are industries where factoring has been a historic part of how they run their business, like in apparel or textiles. The firm can keep a smaller cash balance that’s ongoing with factoring. By cutting down on the cash balance size, a lot more money is available as an investment for the growth of the firm.