Small Business CashFlow Solutions in 2012

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.

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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.

Factoring Invoices Helpes Small Businesses Grow Fast…

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.

Meet Payroll Fast With Neebo Capital’s Staffing Factoring

This article is focused on using factoring effectively to meet payroll quickly

One of many consequences of the recent economic downturn is that organizations have become more guarded and conservative with their cash flow. For example, many  companies are conserving cash by paying their invoices more gradually.

In return, this has impacted smaller companies who depend on steady predictable cash flow to have the ability to meet their obligations. Also, smaller companies are also doing the exact same thing and striving to pay their invoices slowly as well. Ultimately, everyone’s cash flow is being affected.

The problem with this is that many small companies live one invoice to the next (not unlike paycheck-to-paycheck) and a hold up in invoice payments can quickly jam up their cash flow. And also since few small companies have any meaningful cash reserves, a holdup may affect their ability to pay vendors – and more importantly – their ability to meet payroll.

Missing out on payroll can have substantial negative outcomes that could in the end lead to the closing of the business. A line of defense to prevent a cash flow shortage is to develop a cash reserve. For businesses today this is easier said than done due to the fact most small businesses don’t have the ability to build a cash reserves.

However if you can build a cash reserve, your organization will be in a better situation to weather the inevitable storms that will hit your cash flow. If creating a cash reserve is not an option, then you should think about using a business financing solution that can enable you to cover payroll and other expenses if things get tight. Invoice factoring is a business financing solution which might be used to correct cash flow challenges relatively rapidly and without the hassles related with conventional financing.

It works by repairing the problem at the source. It supplies you a cash advance for your slow paying invoices, offering the cash you need to meet payroll and other essential expenditures. Using an invoice factoring remedy you can get rid of the uncertainty of client payments, enabling you to obtain a more foreseen cash flow.

One of many advantages of factoring is the most important thing you need to have to qualify for this type of financing is solid commercial customers. It’s ok if your customers pay slowly – given that they pay reliably. Aside from this, your business needs to be free of legal and tax issues. And factoring can be implemented fairly quickly – usually in a week or two.

One more advantage of factoring is that it’s tied directly into your sales. What this means is that it can be increased easily as your sales increase, provided that you are invoicing credit worthy customers. This makes invoice factoring the perfect solution for small companies with good potential customers that are hindered by cash flow problems.

Freight transportation & Carriers Factoring Tips

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.

Get Business Financing in a Tough Economy

Is this economic downturn over yet? We think so!


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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.

How do you define factoring


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

Payroll factoring | payroll factoring tips

Welcome to our Blog, this article is about payroll factoring, and the advantages/ tips of factoring your invoices to meet payroll.
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On the list of effects of the recent recession is this : companies have turn into more guarded and conservative with their cash flow. One example is, lots of large companies are preserving cash by paying their invoices more slowly. In turn, it’s affected smaller companies who rely on steady predictable cash flow to be in a position to meet their obligations. Likewise, smaller companies are doing the same thing and trying to pay their invoices slowly as well. Ultimately, everyone’s cash flow is being affected.

The issue with this is that many small companies live invoice-to-invoice and a delay in invoice payments can quickly send their finances into trouble. And since few small companies have any meaningful cash reserves, a delay may effect their ability to pay suppliers – and more significantly – their ability to meet payroll. Missing payroll can have substantial negative effects that could ultimately lead to the closing of the business.

Your first line of defense to avoid a cash flow absence is to build a cash reserve. This can be easier said than done because most small businesses don’t have the means to build a cash reserves. When you can build a cash reserve, your company will be in a better position to weather the inevitable storms that will hit your cash flow. If building a cash reserve is not an option, then you should think about using a business financing solution that can allow you to cover payroll and other expenditures if things get tight.

Invoice payroll factoring is a business funding solution which might be used to correct cash flow issues relatively quickly and with out the hassles associated with standard financing. It works by repairing the problem at the source. It provides you a cash advance for your slow paying invoices, providing the liquidity you need to meet payroll and other crucial expenses. With an invoice factoring solution you can get rid of the uncertainty of client payments, permitting you to obtain a more predictable cash flow.

Among the advantages of factoring is the fact the most crucial thing you need to qualify for this type of financing is solid commercial customers. It’s ok if your customers pay slowly and gradually – provided that they pay dependably. Besides from this, your company needs to be free of legal and tax issues. And factoring can be deployed fairly quickly – usually in a week or two.

An additional advantage of factoring is that it’s dynamically tied into your sales. This means that it can be increased easily as your sales increase, provided that you are invoicing credit worthy customers. This makes invoice factoring the perfect solution for small companies with good prospects that are hindered by cash flow problems.

 

Visit NeeBo Capital today!

Property Factoring and Property Management Funding

One of the major consequences of the present real-estate clutter is it has increased demand for property management companies. Normally, a bank is in charge for the routine maintenance of properties that are repossessed. Banks and real estate businesses usually delegate these tasks to property preservation companies who ensure that these properties are kept in excellent condition in order that they can be sold at a later time.
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Nearly all property management companies have employees that handles all maintenance tasks. They furthermore have a steady supply of supplies that are used to fix up properties. Fixes can range from simple items, such as pain jobs, to more intricate plumbing and electricity jobs. Most banks and real estate firms do no pay for these services in advance though. Instead, they ask to be billed on net 30 to net 40 terms. This means that the property management company is accountable for paying staff members and vendors while waiting around to get paid by the bank. The problem – few business owners can afford to wait.

We have the solution, You might delay paying vendors or maybe you could try and build a cash reserve to cover payments when you wait to get paid. A better remedy may be to get Property Factoring to help cover your obligations. NeeBo Capital property management funding and loans option will get you on track in no time. Our solution that works well for this problem and integrates well with the industry is invoice factoring financing. It provides the equal of a quick payment, getting rid of that 30 day wait to get paid and fixing your cash flow. It works by using an intermediary financing company that stands between your company and your customer. The NeeBo Capital factoring company provides you with an advance against your invoice and then waits to get paid by your customer. Once your customer pays the invoice the transaction is settled and closed.

If you are in the property management business and you are looking for a loan, property Factoring, or funding to meet payroll or cover expenses give our staff a call today!

Construction Company Finds Factoring Benefits For Payroll

Generally it appears that the bigger the job the slower the payment. Think about a construction company that secured a contract to service an event for a very large business. The large company pays out on the 10th of every month, but the construction company pays its employees on the first.
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The problem is, The construction company will need to pay their employees before they receive payment from the large company. This small business does not have the cash flow to buy all of the required supplies for the event and pay their employees. What options does the construction company have? Delay paying their employees? Implement for short-term credit with their bank? It’s important to pay employees on time and seeking credit from a traditional financial organization might take more time than wanted due to the demanding approval process.

One remedy to solve this construction company’s cash flow problem is to make use of account receivables factoring. This way of short-term financing would permit the construction company to invest in supplies, pay vendors and meet payroll.

It is crucial to know that when your business is experiencing difficulty meeting payroll you will find a number of remedies available to you. Staying aware of these remedies is essential, particularly when time turns into a factor. Applying for short-term credit from a bank normally takes time and the application process is tough. Take the time to learn about the options available to your business now so that if you end up in a situation where you can’t meet payroll, you’ll know what to do. Have a solution before the problem arises.