factoring invoices – Page 3 – NeeBo Capital Blogs

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.

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.

Purchase Order Finance and Accounts Receivable Financing

Have you ever considered Purchase Order Financing or Accounts Receivable Financing , also known as factoring invoices?

In contrast to Purchase Order Financing, Accounts Receivable Financing focuses on advancing a large portion of the invoice immediately after the product is delivered to the customer. Instead of waiting Net 30 to up to net 90 days to get paid, an accounts receivable financing company is able to reduce the wait to virtually net zero by advancing 70-90 percent of the invoice amount. After the full payment has been received from the customer the accounts receivable financing company will transfer the remaining portion of the invoice, minus their cost (typically one to three percent).

Get you Cash Fast! As compared to the drawn out process of traditional financing, both Purchase Order Financing and Accounts Receivable Financing can be obtained in a matter of days, albeit Accounts Receivable financing can be faster than purchase order financing.

Credit Worthiness. Both methods focus on the credit worthiness of your client, not your balance sheet. Traditional lending look to your past history of managing your company’s finances and credit when deciding if a line of credit will be approved. Purchase Order Financing and Accounts Receivable Financing, on the other hand, will look to the future of your company and the creditworthiness of your clients.

These two funding strategies are great for newer companies. Companies without a track record of at least 2-4 years, you may not have much of a shot at getting approved for business credit through a traditional lender. Since purchase order financing and accounts receivable financing companies put more weight on your clients creditworthiness, than on yours, young businesses are able to get the financing they need! Visit NeeBo Capital Today!

Finance a Freight Brokerage with cash now

Today Freight Brokers are adapting to industry changes and continue to earn money. However one factor has remained the same for freight brokers, and that is getting a line of credit or business loan. Many smaller sized freight brokerages continue to limit the amount of cash flow and growth they can build.

What do you do to address slow paying customers? A slow paying customer can put a real strain on cash flow. If you put pressure on your customers to pay you early you run the risk of losing business, and in the freight brokerage business drivers need to be paid on time.

Many freight brokerages spend too much time balancing reserve accounts to cover the gap between collecting 30 to 60 day receivables. But mismanagement of the ‘all mighty’ reserve account is a sure way to create stress and poor cash flow.

What we recommend at neebocapital.com is invoice factoring freight bills. By picking this route freight brokerages cover expenses early, pay drivers on-time, offer their buyers 90 day terms, and spend more time focusing on growth. The best part is you can get the cash in less than 24 hours and the fees are typically less than 1.59%.

How does this work? Who are these cash flow providers at neebocapital.com and how do they get freight bills paid so fast?

Good questions, Neebocapital.com acts as an intermediary between freight brokerages and customers. Neebo advances the capital against due invoices. This gives brokerages capital they need on hand to meet obligations, fees are not collected by the factoring company(Neebocapital.com) until after your invoices are paid in full. Freight factoring transactions are safer for freight brokerages because factoring companies may assume the risk on your invoices by advancing you the capital needed.

One of the big advantages of factoring invoices is that it’s easier to get than other forms of financing. To qualify for this solutions, your brokerage must work with shippers that have good commercial credit – this is the most important requirement. Also, your company must have a good track record and be free of liens or judgments. This solution is also available to startup freight brokerages, provided the company owners and operators have industry experience.

Factoring Invoices is the Canadian Alternative Financing Strategy

What is an alternative financing strategy? An increasing number of business owners in Canada are beginning to discover what so many American business owners already know. Factoring invoices as a cash flow fix is becoming an increasingly popular strategy.

Canada’s business owners are recovering from a hit taken in 2010. This has an impact on accounts receivables, customers are slower to collect on their accounts receivables, thus they are later on paying invoices. Prior to the downturn Canadian business owners had stacked up their investments in receivables and inventory. This puts Canadian business owners in a squeeze because their money is tied while their customers are taking longer than the 30 days per term provided. This also puts pressure on management to focus on cash flow management rather than focus on growing their business.

The factors involved in this mess are easy to understand. You have your suppliers, our land lord, and your faithful employees. Each of them expect to get paid each month, and when your funds are overdue receivables they can take up to 30, 60, or even 90 days to collect.

So what is a company to do? Go to the bank and hope to get approved within months, or go for venture capital? Neither Canadian business owners are turning towards factoring invoices. By entering into factoring invoices Canadian companies can establish an immediate cash flow, almost within hours. In the United Stated factoring invoices is referred to as “accounts receivable financing” or “invoice discounting.”

Factoring invoices is rather simple. You can refer to Neebo Capital to see factoring infographics that display factoring visually. As a business owner you deliver your invoices to a factoring firm (Neebo Capital) who delivers you funds the same day for a single invoice or a group of invoices.

Accounts receivable financing is not a loan, you do not give up ownership of you business. In fact you get instant access to money with as little as .59 to 1% charge from the factoring company. The factoring company also collects on your invoices for you, they carry the risk of the receivables for you.

Canadian business owners realize the factoring benefits outweigh the minor costs. Instead of waiting weeks for a bank to give them a decision they are turning to factoring companies to see who will give them the lowest rate.

Within 24 hours you can receive up to 80-90% advance on your invoice face value. The factor company does not charge you a fee until the rest of your invoices are collected on. Don’t waste any time and take advantage of this alternative financial strategy that many Canadian business owners already are. Visit Neebo Capital for a free no obligation financial check up. Don’t consider bankruptcy or giving up ownership of your business without discovering what Canadian business owner already have.

Get A Free Financial Check-up Today

The History of Factoring Def, How Factoring Invoices Started…

Believe it or not Factoring Invoices is older than the last 5 presidents combined! If you still can not define factoring then you are most likely a business who is not using it as leverage. Almost all fortune 500 companies’ factor invoices to better manage their cash flow. Neebo Capital is one of the top picks for US Fortune 500 companies.

Factoring def goes like this…

The arrival of the well-known business practice of factoring invoices began since the inception of commerce that dates back 5,000 years. The earliest recorded factoring transaction of invoices was dated sometime before the revolution in the US when cotton, animal furs, timber and other materials were shipped from the colonies to Europe’s continent.

This was a way for ship sailors to carry on the harvest in their new land, where merchants awaited to loan their finances to the colonists. We also see factoring def of invoices throughout the Industrial Revolution when factoring became more focused on credit when they assisted clients in determining the creditworthiness with their customers and setting credit limits.

The method of factoring invoices has been greatly approved over the years. We now have the ability to give instant quotes to potential factorees and loan then cash for their receivables within hours. Visit Neebo Capital and get an instant quote with rates as low as .59%.

Get an Instant Factoring Quote Today!