NeeBo Capital Blogs – Page 45 – The Best Info For Factoring…

Whats Non Recourse Factoring, What is Recourse Factoring

Today non recourse factoring has become the most confusing topics in the industry and potential clients normally have the wrong expectation with regards to this solution.

non-recourse factoring is: It is a factoring service where the factoring company assumes the risk of non payment if the client is not going to pay the invoice due to insolvency during the factoring period. This meaning can sound a little confusing to many. Additionally, non recourse factoring options varies by company, but this definition normally holds true.

In simpler terms, this usually means that when your customer cannot pay the invoice due to financial distress (i.e. bankruptcy) that happens throughout the factoring period, in that case you are covered.

The invoice factoring period is usually defined as the 60 to 90 days that a customer has to pay the invoice back.

One example is, the following items are usually NOT covered in a non recourse arrangement even though many clients who hope were covered:
• Payment disputes of any kind
• Product or service disputes
• Late payments

Keep in mind that non recourse factoring offers some defense against credit risk, it does not offer protections against disputes and overall performance problems. Essentially, non recourse factoring usually covers you if your client suddenly goes bankrupt during the factoring period. It might be an important protection but it’s not all inclusive.

One additional point is that while unforeseen bankruptcy do happen – current credit analysis technology is reasonably good at discovering the warning signs that happen prior to a bankruptcy. Most factoring companies will keep an eye on your customer’s credit regularly anyway and will advise you if they detect any increase in the level of risk.

The specifics of how the non recourse factoring plans operate are defined in the factoring contract. It’s a good concept to review the contract with a competent attorney to make sure you understand it.

Whats Medical Factoring | Define Medical Staff Funding

Medical factoring can be an industry specific type of factoring financing that is definitely designed to help companies that bill Medicare, Medicaid or private insurance companies. Medical factoring may help doctors/physicians, small hospitals, home care workers, group homes and DME’s.

One of the biggest difficulties for companies in the medical field is how long it requires to get a claim payed off. Although when done the right way some claims may pay quickly, most medical insurance claims can pay in 30 to 45 days. This generates a cash flow problem for companies because they have to use their capital reserves to deal with expenses while they wait to get paid. This can become worse if the company is growing quickly, because it forces owners to dip into savings – or worse yet – forces them to postpone key supplier or employee repayments.

Medical factoring can easily solve this problem by offering you with a quick payment for your medical claims. It truly does work by using a factoring company as an intermediary. You sell/assign your medical claims to the financial company who advances you funds for them and hold the claim until maturation. The transaction is then settled when the insurance carrier (or Medicare/Medicaid) pays the claims.

Generally, the transaction works as follows:
1. You submit your approved claims to the factoring company
2. The factoring company provides the initial advance of 70% (or more)
3. Once the claim is paid, the factoring company provides the closing advance of the remaining 30%, less the financing fee.

The sums that are advanced (in step#2 and step#3) vary based on the sized of the business and the size of the claims. Among the advantages of medical receivables factoring is that it’s easier to obtain than conventional business financing. It’s available to both large and small companies – and substantial assets are not required to qualify.

Freight factoring tips for truckers

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?

How to sell staffing invoices & accounts receivable

Payroll funding contracts represent an intricate, long-terms bundle for transactions involving the staffing company and a payroll lender. This blog is about the process of selling your invoices!

These terms may be incredibly critical to preserve your company’s profitability while dealing with great hiring expenditure and employee turn over levels. NeeBo capital is ever-ready to co-operate with your company in creating an acceptable contract that caters to all of your personal needs.

NeeBo Capital provides both payroll funding in addition to advance payroll funding solutions for staffing companies of any size, whether its a big recruitment company having big corporate clients or a small start-up. We’re exactly about allowing you to grow your hold over your customer base.

Whenever you decide on a payroll funding and start to negotiate the contract, consider the following issues:

Commercial Experience: NeeBo Capital beginnings in the business proceed entirely back in 1959. They’ve helped a number of leading staffing companies to prosper and move forward in their small business ventures.

Terms of Arrangement: The length of a payroll funding contract could possibly be for one month only or extend to many years. A contract with a 1 month or less length will typically have higher costs and linked interest rates than the usual long-term contract.

Interest Rates: Dependent on your history and staffing level, the rate of interest will fluctuate. Start-up companies may wind up having to pay higher rates in comparison to well-established large companies.

Policy of Cancellation: You may be accountable for a default provision in case you stop funding or even end the agreement. Penalty charges are utilized by NeeBo Capital to cover financing of new account installations, start-up phase expenditure, and the time and diligence spent on the arrangement right up until that point by the funder.

Advanced Rates: This pertains to the total that’s been advanced to you as soon as the funder bought out your invoice. A ninety percent rate, so, indicates that the funder has advanced nine thousand dollars from a 000 invoice to you. The the rest of the balance has been retained as being a reserve.

Billing: An additional important element that needs to be mentioned talked about based upon the expected rate of aging on your invoices is any overdue payment costs due on your company. Variants of those expenses consist of single charges each thirty days and even every 90 days, dependent upon the business you decide to try. It could also be a fixed percentage-charge every single day following the passage of 30 days.

What’s essential is that interest should be paid to such careful details pointed out earlier to be able to have yourself as well as your staffing company the best possible rate for payroll funding. Dedicate ample time evaluating the factors in play before choosing a suitable pay-roll funding company.

An outstanding payroll provider will tell you far in advance concerning each fee variety they’ll be charging on staffing funding. Practically nothing is going to be concealed on your part, and they will be responsive to your entire questions. Anything and you have the full privileges to question their intentions. Get in touch with NeeBo Capital today, you will be selecting a payroll funder that will deal with your company’s staffing problems like its very own when it comes to payroll funding.

Beware invoice discounting scams on the rise

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

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

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

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

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

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

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

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

The meaning of spot Factoring

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

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

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

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

Risk:

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

Managing:

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

Unsure volumes:

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

Minimum invoice size:

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

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

Freight Bill Factoring Works Fast

Freight brokerages have a tendency to generally be very cash flow rigorous businesses – where the owner is walking on a tightrope attempting to balance slow shipper payments and quick payment demands from . This creates a dilemma because they need to pay their drivers quickly, but they don’t to angry shippers by requesting quick pays.

Their first line of protection is to use their on reserves to pay drivers, while waiting to get paid by shippers. Unfortunately, paying drivers out of cash reserves will restrict your growth and, if done too much, it can create issues for your business.

A much better alternative is to use company financing to take care of this gap. There is one particular type of financing that addresses this specific problem – it’s called freight bill factoring.

Freight bill factoring offers the equivalent of a quick pay, which improves your cash flow and offers the needed funds to pay your drivers and grow your business. It works by having a factoring company act as a financial intermediary in the transaction.

You sell the fright bill to the factoring company who pays you for it immediately. The transaction is then settled once your shipper pays the bill in full. The factoring company charges a small fee for this service – usually a percentage of the freight bill.

One of the advantages of freight factoring is that is easier to obtain than most conventional financing. The most important qualification requirement is the credit quality of your shippers. Aside from that, your company needs to be free of liens, judgment’s and tax problems.
Freight factoring can be an ideal tool for brokers who are growing quickly and whose biggest assets is a roster of reliable and credit worthy shippers.

2011 winning business strategies need social media

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

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

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

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

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

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

Small Business Accounts Receivable Factoring

With regards to the financing industry, little attention is given to the “very small” business market – especially companies with revenues that are less than $45,000/month.
This market does not get the attention it deserves for multiple reasons; For many financing companies, these small accounts don’t generate enough revenue to make it worth their while. Moreover, many consider them to be riskier because small companies usually don’t have the management, systems, and client a base that larger companies do.

However, this market has created an opportunity for companies such as NeeBo Capital that specialize in Small Business Accounts Receivable Factoring services. Small business factoring, as it is better known, is a modified version of factoring invoices that is designed to work with small businesses.
NeeBo Capital strives to provide a more personalized service, enabling the business owner to focus their efforts at growing their business. For example, few small companies have dedicated departments (or even dedicated employees) to handle invoice tracking, verification and collections. Many companies that specialize in Small Business Accounts Receivable Factoring have dedicated staff that will help the owner with these tasks.
One advantage of small business accounts receivable factoring is that it’s easier and faster to obtain than most conventional financing plans. To qualify, the company needs to be in good legal standing, have no liens/judgements and have customers with solid payment tracks. This makes small business factoring an ideal solution for small companies with aggressive growth plans. Visit NeeBo Capital today and speak with the staff for a free no obligation consultation.

Benefits of Factoring For Transportation Companies (Brokers & Truckers)

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

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

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

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

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

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

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

Visit NeeBo Capital today and get the lowest rates!