Tracy Eden Articles

Supply Chain Strategies: Utilize Factoring Services to Strengthen Links - Click To Read Article
Things have changed pretty drastically in the world of commercial financing over the past couple of years, forcing drastic changes in small business financing as well, both yours and the companies you sell to. Just as importantly, the business of your suppliers has also changed. A strong supply chain has always been important in business, but it's absolutely crucial today. Many B2B entrepreneurs are finding that factoring services are a great way to help them build a strong supply chain. Here are four crucial ways factoring services can support your supply chain.

Outsource Your Accounts Receivable Management With Factoring - Click To Read Article
One of the biggest business trends of the past 20 to 30 years has been the move toward outsourcing. Companies usually decide to outsource functions that aren't part of their core competencies, or in other words, those that don't lie at the heart of their ability to manufacture a product or deliver a service. One particularly time-consuming task that gobbles up untold hours of many employees' time is the management and collection of accounts receivable (A/R). By outsourcing their A/R through factoring, businesses can help employees spend less time on this non-core task and more time doing things that help differentiate themselves from their competitors and make a real difference for their customers.

Factoring: A Commercial Financing Alternative to Venture Capital - Click To Read Article
In today's difficult credit environment, companies are turning over every stone and looking in every nook and cranny in their efforts to obtain the commercial financing they need to grow and prosper. Many owners think that venture capital is going to be the solution to their financing problems, but VC investors are very cautious even in the best of times, and especially so today. In the current credit environment, many companies are finding that factoring services are often a better and cheaper way to obtain commercial financing than venture capital.

Factoring Services Can Help Ease Your Cash Flow Crunch - Click To Read Article
In a slow economy, the cash flow crunch caused by slow receivables collections can literally bleed your business to death. While offering open account terms to customers may be part of your cost of doing business, have you ever thought about what it really costs you? If you're waiting 30 days to be paid, you can only turn your profitability into more business 12 times a year. Of course, another risk involved in open accounts is the risk that you won't be paid at all. One solution to both of these challenges is a long-established process that has received renewed attention of late as the bank credit crunch has taken hold: factoring.

Accounts Receivable Factoring: It’s More Than Just the Money - Click To Read Article
The concept of "core competency" refers to the things done by a business that lie at the heart of its ability to manufacture a product or deliver a service. From a management standpoint, employees should spend as much time as possible working on tasks that contribute directly to the business's core competencies. Since managing accounts receivable isn't a core competency for most companies, many rely on accounts receivable factoring companies to handle their accounts receivable functions. Read about how one company began factoring its accounts receivable in order to improve cash flow and soon discovered that factoring services offer additional benefits as well.

Use Factoring Services To Take Advantage of Prompt-Pay Discounts - Click To Read Article
In many industries, an important cash flow strategy is to take advantage of prompt-pay discounts, also known as "2/10, net-30 discounts." These allow companies to subtract 2 percent from the invoice amount if it is paid within 10 days instead of the normal 30. Prompt-pay discounts can really add up, especially for companies with thin profit margins, but the challenge for many is managing cash flow in a way that enables them to take advantage of them on a regular basis. One manufacturing company discovered a unique solution: factoring services.

Financing Alternatives in Today’s Tough Credit Environment - Click To Read Article
With the credit crunch in full force, many small businesses are finding it harder and harder to obtain financing. Even business lines of credit are being squeezed tighter-often yanked right out from under companies that have long established histories with financial institutions. There is hope, however, for companies in this predicament. A creative financing alternative known as asset-based lending (ABL) can be a virtual lifeline for these types of businesses.


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