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We are now seeing the economy recover, big corporations continue to address their cash flow difficulties by postponing payments to small business vendors. At the same time, vendors to these same small businesses continue demanding for quick repayment. The result = cash flow being pushed and pulled making small businesses go out of business.

This cash flow hold-up strategy by bigger companies is grounding the small businesses cash flow. Due to the fact small businesses have got little bargaining room when buying and selling to larger clients, they are often forced to accept more extended repayment terms.

This problem creates another: Vendors (many in a cash-crunch them selves) want you to pay on shorter terms if not faster repayments. This is creating a horrible cash-flow crisis cycle from customer to supplier to vendor, pressing many small businesses to the edge of cash flow disaster.

To add to the fire, we are in a credit crunch mess from the housing impact, bank lending to small and mid-sized businesses has persisted to dwindle. The Small Business associations own data states that from June 2009 to June 2010, the value of outstanding loans to U.S. smaller businesses stepped $43 billion, a drop of more than 6 percent. This lack of lending has had a devastating impact on small businesses that were already strapped for cash, putting many of them out of business.

As business owners are struggling with cashflow during this economic recovery, companies like Neebo Capital seem to be scarce. Having said that, Accounts Receivable Factoring is often overlooked cash flow solution to help small businesses manage their cash flow. This form of funding also known as Factoring invoices is a financial tool that allows small businesses to take advantage of the power of their outstanding Accounts Receivable. Factoring is a valuable cash flow solution to turn a business’ invoices into instant cash, allowing them to fund small business operations.

Factoring firms such as NeeBo Capital supply cash flow to small businesses that have Accounts Receivable. Most invoices charged to credit worthy clients qualify.

Virtually any business can get instant cash with a strong effective business tool known as factoring, where invoices are to be paid by your customers.

In case you are observing some financial challenges in your business, you can always think about factoring services that are a helpful technique to transform payable invoices to money. Several businesses are helped by using factoring services offered from companies such as NeeBo Capital.

Be warned if you choose an unsuitable factoring company, you may meet big problems such as dissatisfied customers, immense headaches and many various problems. Therefore, in order to improve your working capital, and keep your customers happy you must know some information about the factoring company you plan to work with. Overall Factoring invoices is the best financial tool available in the market.

Factoring Invoices: The utmost obstacle for every business managers or business owner is the waiting phase, which is typically 30-60 days to obtain the expenses from their clients. Commonly, waiting for a period of two months is quite difficult for small firms.

As opposed to huge companies, who can wait for a long time, for the invoices to be paid out. This is because, the small business deals with cash flow difficulties if they wait for greater period to get their invoices paid. This further generates problems for business owners since they are not able to meet payroll or pay company bills on time. In addition to, this issue gets serious if there are a lot of imminent orders for the company to fulfill.

The companies are not able to meet these orders because there is not sufficient amounts of funds available because capital is tied up in invoices. However through factoring invoices, the operator is competent to convert their invoices into instant money on their defaulted or slow paying accounts. Factoring, also known as as accounts receivable factoring, is a helpful and efficient business tool for several small businesses.

If you are in the transportation industry this article is for you!

Although the recession has formally finished, the credit crunch that started with the recession is still ongoing and will continue to be so for the direct future. Though some banks are loaning more, in most cases, getting business financing continues to be very difficult. This can be especially true for transportation companies and unlikely to change in the near future due to the fact a number of lending establishments are still in trouble themselves.To meet the criteria for bank or institutional financing the carrier requires to show a few years worthy of profitable operations, strong growth, strong assets and have a good management structure set up. The fact is that, few of the carriers and brokerages that weathered the recession will be able to meet all these standards. Luckily, conventional business financial loans are not the only capital option for this industry. And most of the time, it might not bethe best option either.

 

Almost all freight carriers and brokers experience cash flow problems because they cannot afford to wait 30 to 60 days for customers to pay their freight bills. Most transportation companies have heavy continuing expenses – there are drivers to be paid, trucks that need repair and a number of other costs. It’s not unconventional for undercapitalized carriers to run into cash flow difficulties simply because they can’t afford to wait for their freight bills to be paid. One way to fix this problem is to implement a freight bill invoice factoringprogram.Freight factoring

solves this cash flow difficulty by providing you with an advance for your freight bills. As an alternative of waiting 30 to 60 days to get paid by the shipper, you may get up to 90% right away from the factoring company. This offers you with the cash you need to pay your drivers and cover your business costs. When your shipper pays the bill in full, the factoring company refundsthe remaining 10%, less a small financing fee. 

One of several advantages of freight factoring is the fact that it is fairly easy to acquire and it will not have the troublesome qualification requirements of conventional business financing applications. The most important variable for qualifying is having customers with good commercial credit. This is your most important collateral from a factoring standpoint. Additionally, the business and its owners need to be free of legal and tax problems. This makes freight factoring an accessible solution for new and established freight companies that are looking to grow.

Is this economic downturn over yet? We think so!

Even though the recession has been theoretically over for a while, finding business financing is still almost as challenging as it was during the recession!

This is as a result of a mixture of lending institutions getting in bad financial shape and lenders remaining more conservative in their lending.

In the end, they only offer business loans to organizations that are in pristine shape. Meaning that companies should have 2-3 years of positive financial statements, have strong cash flows, strong assets and a veteran management team.

On the other hand, few companies have made it through the recession untouched and most can’t meet these prerequisites. When a company is viable but has a less than perfect past – what is it their options?

Almost all companies that look for funding usually have a similar problem – poor cash flow. This issue starts (or worsens) when clients start paying their invoices overdue or start asking for longer payment terms. Invoices that used to be paid in 15 to 20 days, now get paid in 30 to 40 days.

A few clients may take up to 60 days to pay an invoice. Meanwhile, the company still needs to cover all their current expenses.This can put a company in a risky position, particularly if it does not have strong cash reserves.

These Companies gamble on missing a important supplier payment or worse, lacking payroll. A method to fix this problem without using a business loan is to use invoice factoring.

Invoice factoring provides an advance for slow paying invoices. This offers the company with the essential funds to meet supplier payments and other expenses. More essential, it stabilizes cash flow by providing predictable invoice payments, allowing the company owner to focus on growing the business.

Any time cash flow is tight, owners stress over taking on new business and adding customers due to the fact they are unsure if they should be able to cover expenses right up until the client pays. Invoice factoring solves this problem – permitting the business to take on new clients and grow.

Including factoring to company is fairly easy. Commonly, the factoring company will give you an advance of up to 85% on your invoice as soon as the work is completed. The remaining funds, less the fee, are rebated when your customer actually pays.

Being approved for factoring is much easier than qualifying for other types of financing. The most important requirement to qualify is to do business with customers that have good commercial credit. Talk to our staff about our range of funding options.

Whenever we define factoring we generally get this question; Who can use Factoring?

NeeBo Capital has run an accounts receivable factoring company for numerous years. We completely understand the requirements for cash flow in new and growing businesses. Let’s look at some of the typical uses of the funds from selling your invoices at a discount to factoring companies.

Below are some common uses that we find our clients looking to factor invoices:

Cash flow for; meeting payroll, buying inventory or parts, paying taxes (the cost of small business factoring is A lot less than the IRS fees for late tax payments), financing a marketing campaign, purchase new machinery, development opportunities.

In the event you sell to greater firms many of them take 30, 45, 60 or as much as 90 days to pay. Their credit worthiness is excellent – they just take time to process payments.

To the average small business acquiring these larger customers generally is a very good thing. Larger sized businesses generally make larger orders.

Larger orders that take longer to collect on means cash flow problems for you. Your small business must buy inventory and make payroll while still filling these orders. Working capital is depleted.

Should you listen to the news, you’ve almost certainly heard of the uncertainty of the economic climate. For every encouraging piece of news, we are told some thing discouraging. The American Trucking Association recently released figures that showed truck tonnage rose 3.9% in July from a year ago, but it also fell 1.3% from June ‘11. To help our trucking clients get around these unpredicted ups and downs successfully, we questioned our transportation team for a few blocks of advice:

While looking for a funder, choose one that has many free services that save you money. When you’re going to choose a factoring company, why not pick one that gives you discount rates! Some factors are large enough to get discounts on products and services you witout a doubt use. Search for factors that will provide fuel cards, discount rates on gas or insurance, and even free credit checks.

Think about factoring or spot factoring. In a slow economy debtors tend to stretch out repayments, tying up your working capital in outdated invoices. When business is great, having more access to quick cash can help you acquire on more jobs. In both situations, consider having a cash flow solution in place. A factoring company will provide you with quick cash for your entire receivables. A spot factor will work with you on invoices from as few as one slow-paying customer. Take into account both options carefully. The spot factor’s fee will most likely be higher, but it may be a better choice if most of your customers pay quickly.

Haul loads only for businesses with sound credit histories. Knowing the current credit profile of the businesses you do business with is the surest way to reduce your risk of not being paid or of being paid later. Don’t let your desire to pick up a load cloud warning signs that a customer is about to go out of business. Did they pay on time the last time you worked with them? Do you know other truckers who recently have had good experiences with them? Do you work with a finance company that has access to their credit worthiness?