NeeBo Capital Blogs – Page 29 – The Best Info For Factoring…

2014 Unsecured Small Business Loans for Your Working Capital Needs

Many businesses reach a point wherein getting funding for additional working capital is a must. This may be at the beginning of a business life cycle when all other capital is tied up in setting up the business, or sometime in the middle when you need additional capital to grow.

Whenever the need arises, it’s important to know and understand where and how you can get 2014 unsecured small business loans. For small businesses, getting funding may be a challenge because of the nature of the lending process. Lenders usually look for collateral and require that you have stellar credit rating to back you up. Small businesses often have trouble meeting these two requirements, especially if you’re just starting out.

Advantages of an Unsecured Loan

This is precisely why unsecured small business loans are so valuable. With an unsecured loan, you don’t have to worry about proving your credit worthiness so much as when you were to take out a regular loan from a traditional lending company such as a bank. More importantly, you will not be restricted as to how you will use the cash. Unsecured small business loans give you the working capital that you need, with a lot of freedom and flexibility as to how you want to use this funding. This is very critical because for small business owners because many things could suddenly crop up and need funding.

Unrivaled Flexibility

When you have access to 2014 unsecured small business loans, you get ready cash and you get to use it for anything. Whether that’s to renovate your office space, upgrade your equipment, or consolidate the debt that’s eating up all your cash, you can use it as you see fit. You can even use it to increase your inventory or amp up your operations.

There are many ways you could maximize an unsecured small business loan, and you will not have any restrictions whatsoever. Moreover, if you choose your lender well, you will also have the flexibility of usage without hidden fees, hidden requirements, and all those other things that could tie you down with any other lending agreement.

Growing the Business

The most important thing you should think of when applying for a small business loan however is the fact that you can use it to grow your business. Many small business owners are hindered by short-term thinking, as well as by the mentality that they can only stay a certain size or earn a certain amount. You may be a ‘small’ business now, but if you use your working capital which you can get from 2014 unsecured small business loans to your advantage, you can invest in things that will position your business for future success.

Review your options at Neebo Capital and you’ll find out that there are many ways in which you can free up your working capital and invest in the things that matter. Give us a call, you just might be on your way to not only meet your working capital needs but also bring your business to the next level.

The Advantages of Asset Based Lending for Inventory and Accounts Receivable

We serve growing lower to middle market companies typically with revenues between $8 million-$100 million+. We deliver timely results which our clients demand so they can achieve growth and higher profitability. Credit lines are typically $1 million – $50 million+. Call us today for a free consultation

Asset based lending for inventory and accounts receivable is one of the best business solutions today although admittedly, it hasn’t quite gained the popularity it deserves. Securing capital is always among the biggest challenges in running a business, and this is true even from the onset. To establish a business and bring an idea into fruition, you need enough capital. But to keep it running is another story altogether, and you will need working capital to make it even remotely possible. The reality is that some businesses have a problem finding firms that will lend them the money needed to cover incidental and seasonal expenses, especially when you need to expand. Fortunately, you can turn to asset-based lending for additional funding.

Understanding Asset-based Lending

Some companies think that banks are the only ones that they can turn to when working capital is scarce, but nothing can be farther from the truth. Traditional funding sources like banks tend to be very limiting and this is why asset-based lending is so much better as an option.

What happens with asset-based lending is basically as a company, you use your current assets as collateral when you apply for a loan. For instance, a lender could look at your inventory and offer you a financing option based on how much your asset is worth. Another thing lenders can take a look at is your accounts receivable; ‘buying’ it from you by converting it into cash and actually taking care of collecting it from your customers when it’s due.

Maximizing Assets for Liquidity

What asset based lending for inventory and accounts receivable can give you is the ability to maximize your assets for liquidity. Having assets like inventory and accounts receivable is important to any business, but if you need to be as liquid as possible, these assets won’t count for much. This is because of the fact that they’re just sitting there with value that you can’t convert to cash right away. Accounts receivable for instance is an asset, but you won’t get to ‘spend’ it in the same way you spend cash, until your clients pay you, which will depend on your agreement. That could be next week, next month, or next year. If you need liquidity to spend for other important things now, then turning to asset-based lending is the perfect solution.

Proving Credit-Worthiness

Another advantage that you can get with asset based lending for inventory and accounts receivable as opposed to traditional financing options is that you don’t have to work so hard to prove your credit-worthiness. In fact, for options like accounts receivable financing, it’s the credit-worthiness and credibility of your customers that proves to be more important, because in the end, the lender will collect from them, not from you.

If you are interested in asset-based lending, please check out www.neebocapital.com. Neebo Capital has financial solutions that will help your business get the funding it needs for day to day operations as well as aid in its growth.

The Advantages of Asset Based Lending for Inventory and Accounts Receivable

Understanding Asset-based Lending

Maximizing Assets for Liquidity

Proving Credit-Worthiness

The Importance of Working Capital for Mid-Market Companies

In the world of business, it is the middle market that steers most economies. The U.S. middle market alone is one of the biggest in the world, contributing to the gross domestic product, employment, and growth. It is in the middle market that there’s a lot of room for potential growth and expansion, and this is why it can also be a very competitive playing field. If one operates in the middle market, the importance of working capital for mid-market companies should be astoundingly clear. Working capital is the lifeblood of any business, especially one that’s still trying to establish its place.

Innovation is the Key to Growth

When you’re in the middle market, it’s easy to fall into the trap of contentment. You’ve found a stable place, established your brand name, and managed to get a few customers. But the reality of competition will soon come knocking at your door, which is why you can’t afford to stay stagnant.

Highly successful middle market firms know how important it is to constantly reinvent your business, and this is where innovation comes in. It’s important to invest in research and development in order to come up with exciting new offers and changes that will delight the customers. This is why you need working capital for mid-market companies. After all, if your working capital is tied up on other essential things, you can’t make room for R&D spending.

What Working Capital Can Do

Throughout the business cycle, it’s important to make sure that you have access to the capital that you need. Having working capital not only means you get to invest in innovation. It also means you can focus more on personalized customer relationship management, talent development within the organization, and making your vision a reality. You get to do all of this while concentrating on your key operations and making sure everything’s running as it should.

If you have equipment that needs to be bought or systems that need to be upgraded, your working capital should also be able to make these possible. Without sufficient working capital, you won’t have room to really spread your wings and do what’s needed in order to grow.

More Than Just Capital

In making sure you have your source of capital however, it’s not just the interest rate you should look at. You can check out factoring services and other working capital options at Neebo Capital but it’s important to keep in mind that it’s not just the low interest rates and stellar customer service you should be looking it. You should choose a lender that truly understands the needs of your business. If your lender understands the intricacies of your operations and the timeline in which your business operates, then it could offer a more customized approach and provide you with your much needed working capital for mid-market companies.

For more information about this or to discuss your options, please get in touch with Neebo Capital.

Using an Unsecured Working Capital Line to Give Your Business a Boost

The importance of working capital is often underplayed, but the fact is that it can give you a lot of freedom to grow your business.

There will come a time when your business will need additional funds so it can grow. After all, if you want to be poised for growth, you’ll need to invest in more people, more equipment, upgrades, and even a new office. Growth is a good thing obviously but you’ll also need to come up with more money to make it sustainable. And getting access to an unsecured working capital line is all that your business needs to get that much-needed boost.

The Power of Working Capital

The importance of working capital is often underplayed, but the fact is that it can give you a lot of freedom to grow your business. When you get used to the day-to-day operations of your business, it’s easy to overlook things that may need improvement. Some people are so engrossed in the daily operations that they fail to see the bigger picture.

For instance, your equipment and machinery may work fine right now, but if you had a bigger working capital, you could easily invest in an upgrade that would make your operations more efficient. More working capital could also mean giving your employees a better compensation package, thereby increasing overall productivity and satisfaction.

Working Capital Considerations

The truth is that you simply can’t think of ways to expand and improve your operations if every dollar of your working capital is tied up in your everyday expenses. While those expenses are important to keep your business afloat, having access to an unsecured working capital line can help you expand your horizons.

When reviewing your unsecured working capital funding options out there, these are some of the things you should consider:

Flexible payment options – You should check the financial company’s arrangement when it comes to payments. Such arrangements and terms can have a significant impact on your bottom line.

Seasonality – A good working capital line will give you enough revolving credit that allows you to get extra funding for seasonal needs.

Fees and limits – Another important consideration is the fees that you will have to pay to get access to a working capital line. You should also ask what your borrowing limit is.

Customer service – Getting a credit line is still a service that you’re essentially paying for, and this is why it’s important to choose a firm that has reliable customer service. A good lending company will even serve as your financial guru, to help you in making sound financial decisions should you need their assistance on such aspects.

Think Long-Term

When you apply for an unsecured working capital line, what you’re essentially doing is giving your business a much-needed boost. It also allows you to afford securing additional short-term assets. But while these assets are essentially for the short-term, you’ll need them as you prepare yourself for long-term success.

If you are in need of an unsecured working capital line, please visit www.neebocapital.com today. We have several financial solutions available to suit your requirements.

Understanding Unsecured Small Business Loans in Canada

Small as well as start-up businesses are no strangers to the challenges of having sufficient working capital. From the onset, you would need capital to set up any type of business, although some industries and niches require more funds than others. After putting up your capital, it would take some time to get your ROI. But the reality of the business world is this: the more you invest, the higher your potential ROI is. This means that in order to make more money, you have to keep investing. This is where unsecured small business loans in Canada come in.

Small Business Financing Challenges

Loans are very common in the life cycle of any business. Chances are, you would need to apply for a loan to get the capital that you need, and this is what you’ll use to rollover. But small businesses usually face some challenges when it comes to applying for typical loans offered by banks. You would have to…

Have a track record

Conventional loan providers would ask you to prove your track record before approving your loan. Lenders would like to be sure that your company has the ability to pay them. For small businesses however, especially the ones who are just starting up, they don’t have a track record to show which is why obtaining a bank loan can be a challenge.

Secure a collateral

Traditional lending methods would require that you have a collateral before your loan is approved. Such collateral is usually a business asset such as an equipment, vehicle, or even your building, if you own the property. The challenge with small businesses is that they usually don’t have any valuable asset that they can use as collateral.

Establish a credit history

Showing that you have enough credit history means that you should have already applied for loans in the past, and that these loans got approved and have ideally been paid off. But the reality is that small and start-up businesses rarely have applied and been approved of loans in the past which means they, as a business entity, don’t have a credit history to show.

For all these reasons, unsecured small business loans in Canada would seem like the ideal solution.

What Does ‘Unsecured’ Mean?

Unsecured means there is no collateral needed. It also means the lender will not require you to show documents or even a credit history. In essence, unsecured loans can address all the challenges that small businesses usually face in searching for additional capital. Having the option of applying for unsecured small business loans in Canada will help your business get the leverage that it needs, and this is important especially if you’re still trying to establish your name. Unsecured small business loans in Canada is the answer if you need additional capital in order to expand. Check out www.neebocapital.com to review all the options available for you. If you need additional funding, we can definitely offer a solution that’s just right for you.

Make Your Customers Happy with a Purchase Order Loan for International Orders

Click here for our purchase order case study.

Fulfilling your customers’ needs is easy when you have overflowing capital, but the reality is that there will be times when money (capital) becomes scarce. Operating a business is always challenging, and there will be many hurdles that you have to go through. For instance, there will be times when you have to fulfill an international order, and this order may be so big that you will need more than your existing capital to complete it. If you don’t have access to the right purchase order loan for international orders, you may be forced to say no to your customer. Doing so will translate to opportunity loss and decreased goodwill.

The Challenge of Doing Business Globally

The reality is that if you want to operate on a global scale, you will need access to additional working capital that can help you meet the demands of your international customers. It’s a shame to say no to a customer that’s based overseas simply because you don’t have extra money to take care of additional shipping and export costs. This is why purchase order financing is available, and this type of financing is typically useful to the following types of businesses:

Manufacturers
Exporters
Logistics/forwarding companies
Distributors
Re-sellers

Maximizing Your Purchase Orders

What’s good about knowing where to get a purchase order loan for international orders is that you get to have access to additional working capital without the added risk that usually come with loans. With this type of financing, what you do is essentially ‘sell’ your purchase orders to a lender that gives you ready cash in return.

This means that you can trade your purchase orders, which are still receivables at this point, into money that you can use right now. You don’t have to wait for your client to pay you, which may of course take some time. Whatever purchase loan you get, you can use it as working capital needed to fulfill that order. By turning your receivables into cash, you get to maximize every purchase order you get and satisfy your customers at the same time.

Additional Cash Flow Benefits

Getting purchase order loans means so much more than getting additional cash flow. In the long run, getting a purchase order loan for international orders means you’re minimizing your capital constraints and maximizing your company’s potential. It also means you’re gaining a competitive edge and making your business trustworthy in the eyes of your suppliers and customers. If the market knows you can be trusted, they will easily choose you over competition. In essence, adding a purchase order loan into your capital structure will pave the way for your business to grow.

If you want to know how you can apply for a purchase order loan, visit www.neebocapital.com to find out what your options are. Getting international orders is a good thing because it not only gives you more profit but it also builds your reputation on a larger scale. Don’t limit what your business can do by getting purchase order loans specifically for international clients.

How to Meet Your Staffing Company Working Capital Requirements

Running a staffing company is challenging as it is, and this is largely because your main asset or resource is your people. They are the ones that make your business tick, and working with people is never a walk in the park. More than that, there are staffing company working capital requirements that need to be met as well.

You may have a bunch of really good people under your belt and ready to be deployed, but you need to match these individuals with the right clients. You need to ensure that the people you have carefully chosen and trained are fit for the job, because you also have clients to please. But the real challenge is the timing of payment, because for the most part, your clients don’t pay you upfront.

The Challenge of Running a Staffing Company

To keep a staffing company alive, you need to compensate your staff well. This means meeting their payroll regularly, even if the client you are serving hasn’t paid yet. This is where working capital assistance comes in. You don’t have to borrow money to make sure you can make the next payroll. What some staffing companies do is look for working capital solutions, like trading invoices for ready cash. That way, you get to free up your cash in time for paying your people, and let your lender worry about claiming your accounts receivable.

Working Capital Needs

As a matter of fact, it’s not just payroll funding that requires staffing company working capital. Payroll is a pretty standard part of operations, and there are others that also beg for higher working capital than what a staffing company might normally have.

Opportunities for growth. There will be times in a company’s life wherein growth opportunities will come. These opportunities don’t come everyday, and when they do, they need to be seized. To grow, you usually need to put out capital, and this is why additional working capital is needed.

Credit management. Your firm might have outstanding liabilities as well as outstanding receivables that don’t really leave you much for day-to-day operations. Your capital shouldn’t be tied up to anything ‘outstanding,’ as you will need cash to keep your business running.

Seasonal fluctuations. There will be times of the year when more people (staff) are needed, such as during the last quarter of the year when most companies need to hire extra hands to cater to the market demand. The need to temporarily increase your recruitment quota may have an adverse effect on your normal cash flow. For these seasonal payroll needs, you also need additional working capital.

For all of these staffing company working capital requirements, you need to have a reliable funding provider. You may check out www.neebocapital.com for a financing package that’s tailor fit for your company. There are many options available, and what’s important is to find what can really help your staffing company based on your specific situation.

Please visit www.neebocapital.com to check out all the options we have for your company, and be on your way to financial freedom and growth.

How to Spot the 2014 Best Medical Factoring Companies

Looking for the 2014 best medical factoring companies can be somewhat time-consuming if you are not fully aware of what qualities you should look for. To help you along, here are some tips that can serve as your guide, as you look for the best medical factoring companies of 2014.

1. Ask how the factoring company determines its fees.

If you believe that you need to canvass and compare, gather all the information you have obtained from factoring companies and assess them side-by-side. Prior to this, however, you should be prepared to provide them with the following information, in order that they may also assess you, and see if your medical business qualifies:

How many patients do you have (in the case of collectable invoices from individuals)?
How many insurance agencies and HMOs do you need to collect from (in the case of collectable invoices from companies)?
Of the total uncollectable invoices, how many tie up your cash flow because of delayed payments?
How long has your uncollectable invoices been standing (from shortest to longest duration – this will help the factoring companies arrive at the median length of time for your pending invoices)?
What is the aggregate amount of your total uncollectable invoices?
What is the lowest and highest amount that has been uncollectable (this will help the factoring companies arrive at the median amount of your pending invoices)

2. Ask them for an advance rate and clarify how much cash they are willing to give in exchange for your outstanding invoices.

Factoring companies may be able to offer anywhere from 70% to 90% of the face value of your invoice. Finding out which among your options offer the highest advance rate can help you come up with a good decision.

3. Ask about of the factoring arrangement or contract, specifically regarding these matters:

What are the terms and conditions of the factoring contract?
Is there a minimum monthly volume of outstanding invoices?
What is the longevity of the contract?
Should you decide to pre-terminate the services of the factoring company, will there be any fines or penalties?
Is it possible to terminate the contract through an advance notice? If so, what methods are acceptable for informing the factoring company? What’s the length of advance notice that is required?

4. Ask if they will take charge of actually handling collections.

Some factoring companies take care of the collections while others don’t. It’s best that you find out about this beforehand.

5. Ask about all the fees involved, how much each fee is, and what is the nature of each fee.

For example, you can ask about the application fee, credit reporting fee, any fees for advances released on the same day of application (if this is possible), early termination fees, and the like.

By asking these questions upfront, you will be able to gather enough relevant and accurate information that can guide you in finding the 2014 best medical factoring companies.

You can compare Neebo Capital with other factoring companies to find out if what they offer is what you require for your medical factoring needs.

What are Your 2014 Medical Factoring Options?

NeeBo Capital’s Funding Program offers healthcare providers a receivable based line of credit that is based on the net realized value for your billings to third-party payors (For Example: HMO’s, commercial insurance providers, Blue Cross-Blue Shield, Medicaid & Medicare). For medical providers that have accounts receivable with a net realized value of $500,000 or less, we offer our medical factoring program that is a funding program that purchases your billings at a discount.

With the year 2014 now in full swing, what’s your financial health like? Is it on the upswing too, or are you worried about cash flow problems? If it’s the latter, don’t worry, because there are plenty of 2014 medical factoring options that can help you out of a tight financial situation.

Is Medical Factoring a Loan?

When you avail of medical factoring, you are not taking out a loan, but rather, a cash advance. Medical factoring can be great for companies in the health care field, whether they are key players, such as clinics and hospitals, or businesses that are responsible for providing support services to those in the medical and health care field, such as:

Manufacturers and/or suppliers of medical equipment
Agencies that facilitate nurse staffing
Providers of medical transcription
Drug and/or alcohol rehabilitation centers
Any business or company that is allied to, or dependent on the medical and health care industries for its operations

Benefits of Medical Factoring

The most direct answer to the question of what you can get out of medical factoring is this: you get your cash flow freed up, so that you can focus on attending to your core business, instead of worrying about where to get funds for such things as equipment repair or upgrade, hiring of additional staff, paying the rent, paying the salaries of your existing staff, paying utilities, buying materials, and many other concerns.

In a nutshell, you’ll be getting a high level of freedom and convenience. You will also be able to offer your customers longer payment terms.

These happen because once you sell to the factoring company your unpaid or uncollected invoice, they will give you cash, which is equal to the discounted face value of the unpaid invoices. The Factor or factoring company will then collect from those who owe you money on the due date that you and your customer agreed upon.

Other Concerns

Aside from what has already been explained, the other matters which can affect your 2014 medical factoring options include:

Financing costs. The Factor’s financing costs are affected by the reliability of your customers in paying what they owe. If your invoices are made out mostly to individual customers, the financing costs will be likely higher, as there will be more risk on the part of the factoring company. Conversely, if your invoices are made out to third party companies, such as insurance agencies, which will require a B2B or business-to-business transaction between the factoring company and the insurance agencies, then financing costs will be lower.

Identity of Collector. There are companies that avail of medical factoring who are uneasy with having the name of the factoring company appear as the collector of the invoices, instead of their business name. If you are concerned about this matter, you may bring it up with the factoring company of your choice. Most factoring companies will be able to come up with a solution to such concern.

Need medical factoring? Click here

3 Important Things to Know About Medical Factoring for Doctors

Why is medical factoring for doctors important? It’s because medical factoring can mean the difference between a thriving practice or an endless frustration over uncollected bills and the resulting inability to properly sustain a high standard medical practice.

Medical and Financial Management Skills

For physicians, a successful healthcare practice can be seen not only in the number of satisfied patients that the doctor treats, but also in the improved quality of life that he or she is able to provide as a result of pain and disease management.

In turn, the attainment of such results are generally dependent on two things: the medical and human relations skills of the doctor, and his or her financial management acuity. While both may be learned in school, it is only through experience that the desired level of excellence in patient care and financial management are achieved.

However, even if a physician may have impressive medical skills and is highly experienced in financial management, there are other things that could get in the way of successful health practice. Fortunately, there are also corresponding ways by which medical factoring could be the solution to such obstacles.

Overhead Costs

One of the concerns of private health care practitioners (as opposed to doctors who work in hospitals) is overhead costs. A physician who practices in a private capacity has to deal with the payment for utilities and rent, as well as staff salaries. Overhead costs are subject to economic forces and geographical location, and their fluctuation can severely affect cash flow.

Delays in Payment

Collecting from health insurance companies can take a long time. Even if it has already been weeks or possibly months since the medical treatment had been given, physicians often experience delays in payment.

On paper, physicians may have a lot of accounts receivables but they cannot spend the figures that are indicated as receivables. Such “payments” cannot be used to pay staff salaries, nor can they be used to buy medical materials or equipment, which is why a doctor may often be cash strapped.

Again, this could be directly tied to the economy. The Corporation for Enterprise Development recently released a new study which showed that 44% of Americans are experiencing poverty in terms of liquid assets. This means they live from paycheck-to-paycheck, since they have less than 3 months savings, if any.

Although as a whole, the public still sees the importance of prioritizing health care above their other needs, there are times when matters relative to health care, such as the payment of insurance premiums, become a non-priority.

Time Constraints

Due to the nature of their profession, physicians dealing with time constraints or time pressures are a distinct part of doctors’ lives. Generally, their concentration is fixed upon two major aspects: actual patient care and the upgrading of their own skills and knowledge through seminars, conferences, and advanced studies. Such things can often reduce their time for reviewing the minute financial details of their private practice, which in turn, can cause cash flow problems.

Medical Factoring

It is in these three important areas that medical factoring for doctors become crucial. Basically, medical factoring can free up the cash flow of physicians so that they can devote their time to providing excellent medical care, instead of worrying about where to get funds. If you are a private health care practitioner, get in touch with Neebo Capital to find out how we can help you.