Note
Sources that follow the quotations include the name of the book or resource, followed by the name of the chapter, issue, or subsection in which the quote is found.
ACH Transfers
If you decide you want to transfer funds with ACH - which will save a lot of time - come armed with a very strong balance sheet and a lot of liquidity.
FactorTips - Issue #16
Sources that follow the quotations include the name of the book or resource, followed by the name of the chapter, issue, or subsection in which the quote is found.
ACH Transfers
If you decide you want to transfer funds with ACH - which will save a lot of time - come armed with a very strong balance sheet and a lot of liquidity.
FactorTips - Issue #16
Advances
Make it your policy not to advance on any invoice until the work is finished and is signed off by the customer or can be verified. Period. Make this clear from the very beginning so your client never even thinks to ask in the first place…though he very likely will ask anyway just to test you. Kind of like your kids.
Factoring Small Receivables – Common Mistakes
Advantages of Factoring as a Business
You stock nothing, manufacture nothing, sell no product, and have no raw materials to replenish. You provide a service with a universally needed commodity: cash. Because that’s stored in your bank account, it doesn’t take any room in your garage.
Factoring Fundamentals – Is Factoring Right for You?
Because you deal with both people and money, just about any kind of background will serve you well as a small factor.
Factoring Fundamentals - Is Factoring Right for You?
If your family is a good team and each person understands his or her role, as well as the others’ roles, you can enjoy working this business for quite some time.
Factoring Fundamentals - Is Factoring Right for You?
Application Process
If you have ever applied for a bank loan, you’ll find the application process with factors to be much simpler and faster.
Unlocking the Cash in Your Company – Signing On
Bad Debt
If a prospect wants to factor poor paying customers who are nothing more than bad debts, she doesn’t understand what factoring can really do, and is better off contacting a collection agency. Factors want to buy good receivables, not bad debt.
Factoring Fundamentals – Risk Management Tools
Factors are not collection companies who thrive on deadbeat payers. Factors are financiers who invest in dependable payments coming from solid companies. They do not want to purchase bad debt.
Unlocking the Cash in Your Company – Faulty Assumptions and Mistakes to Avoid
The only unpleasant aspect of factoring, to my thinking, is trying to collect bad debts.
FactorTips – Issue #9
Make it your policy not to advance on any invoice until the work is finished and is signed off by the customer or can be verified. Period. Make this clear from the very beginning so your client never even thinks to ask in the first place…though he very likely will ask anyway just to test you. Kind of like your kids.
Factoring Small Receivables – Common Mistakes
Advantages of Factoring as a Business
You stock nothing, manufacture nothing, sell no product, and have no raw materials to replenish. You provide a service with a universally needed commodity: cash. Because that’s stored in your bank account, it doesn’t take any room in your garage.
Factoring Fundamentals – Is Factoring Right for You?
Because you deal with both people and money, just about any kind of background will serve you well as a small factor.
Factoring Fundamentals - Is Factoring Right for You?
If your family is a good team and each person understands his or her role, as well as the others’ roles, you can enjoy working this business for quite some time.
Factoring Fundamentals - Is Factoring Right for You?
Application Process
If you have ever applied for a bank loan, you’ll find the application process with factors to be much simpler and faster.
Unlocking the Cash in Your Company – Signing On
Bad Debt
If a prospect wants to factor poor paying customers who are nothing more than bad debts, she doesn’t understand what factoring can really do, and is better off contacting a collection agency. Factors want to buy good receivables, not bad debt.
Factoring Fundamentals – Risk Management Tools
Factors are not collection companies who thrive on deadbeat payers. Factors are financiers who invest in dependable payments coming from solid companies. They do not want to purchase bad debt.
Unlocking the Cash in Your Company – Faulty Assumptions and Mistakes to Avoid
The only unpleasant aspect of factoring, to my thinking, is trying to collect bad debts.
FactorTips – Issue #9
Pages 1-3
The first three pages
are printed below.
(© Dash Point Publishing, Inc.)
The first three pages
are printed below.
(© Dash Point Publishing, Inc.)
Bad Debt Reserves
To create and build up a bad debt reserve, take 10% of every fee earned when the payment is received and deposit the total at the end of the month into a savings account. This steadily builds up the reserve, is easy to track and access, earns a little interest, yet isn’t enough to dig too deeply into funds needed to pay operating costs.
FactorTips - Issue #4
Benefits of Factoring
If using these services (billing, A/R collections follow-up, credit screening, and so on) enable you to eliminate these tasks from in-house staff, you’ll lower your expenses and/or enable these staff to take on other responsibilities. This can improve your profit margin in addition to increasing sales. Therefore you need to consider not only the costs of factoring, but the benefits as well.
Unlocking the Cash in Your Company - Faulty Assumptions and Mistakes to Avoid
Boredom
While procedures need to be followed, factoring is anything but boring.
Factoring Fundamentals - Is Factoring Right for You?
If you find this boring you need to take up extreme sports for a living.
Factoring Fundamentals - Is Factoring Right for You?
To create and build up a bad debt reserve, take 10% of every fee earned when the payment is received and deposit the total at the end of the month into a savings account. This steadily builds up the reserve, is easy to track and access, earns a little interest, yet isn’t enough to dig too deeply into funds needed to pay operating costs.
FactorTips - Issue #4
Benefits of Factoring
If using these services (billing, A/R collections follow-up, credit screening, and so on) enable you to eliminate these tasks from in-house staff, you’ll lower your expenses and/or enable these staff to take on other responsibilities. This can improve your profit margin in addition to increasing sales. Therefore you need to consider not only the costs of factoring, but the benefits as well.
Unlocking the Cash in Your Company - Faulty Assumptions and Mistakes to Avoid
Boredom
While procedures need to be followed, factoring is anything but boring.
Factoring Fundamentals - Is Factoring Right for You?
If you find this boring you need to take up extreme sports for a living.
Factoring Fundamentals - Is Factoring Right for You?
Want to
learn more
about factoring?
Get our
2 Free Ebooks:
What Is
Factoring?
and
Factoring Vs.
Other Financing
More info here
learn more
about factoring?
Get our
2 Free Ebooks:
What Is
Factoring?
and
Factoring Vs.
Other Financing
More info here
We provide
FREE
FREE
Need Software
for your
factoring business?
for your
factoring business?
Factoring Books & Resources
for Investors & Entrepreneurs
for Investors & Entrepreneurs
Priority Mail
on orders over $40
shipped to U.S.
street or PO addresses
on orders over $40
shipped to U.S.
street or PO addresses
253 444-1856
|
Paperback $9.95 |
Ebook $7.95 |
