Invoice Factoring Blog

Link: http://www.ifgetwork.com

Since 1963, the President of the United States has proclaimed National Small Business Week to recognize the contributions of small businesses to the economic well-being of America. This is when the U.S. Small Business Administration recognizes outstanding entrepreneurs and small business owners. There are bow an estimated 27.2 million small businesses in America who also create 60-80 percent of new jobs in the country.

As part of this event, Governor Jim Doyle is joining with President Barack Obama in pushing Congress to pass a package of tax changes, credits and loans designed to help the small businesses. The administration is seeking to boost U.S. jobs in an election year, and has called on Tuesday for Congress to pass a $30 billion package to aid small business lending hoped to increase hiring.

In the meantime, small businesses need cash flow in order to survive. Accounts receivable factoring can assist in this process. For more information about factoring call toll free: USA - 877-210-9748 or 877-210-9748: Canada. Or e-mail: mail@ifgnetworkcampaign.com

Link: http://www.ifgnetwork.com/solution.php

Most small businesses learn from their mistakes in their earlier years, but in today's economy, there is often not enough time to wait in order to turn a profit. Following are some tips for managing your cash flow and being more successful in your small business:

Make sure to pay your vendors with a credit card. Why? Because it gives you more time to sell more inventory and collect from your customers and then pay the bill. If you pay a vendor 30 days after you make a purchase, and you have 20 days before you have to pay the credit card bill to avoid interest charges, meaning you have almost 50 days to pay.

You should consider accepting credit cards from your customers, even though you must pay a credit card processing fee for each customer transaction. These fees can be up to three percent of the sale for online orders. You also sometimes have to pay per-transaction fees and a small monthly fee. The good news is that you will get your funds faster, then pay your bills on time, saving you more in interest fees.

And last, make sure that you invoice your customers in a timely fashion, because the faster you send out an invoices, the sooner you're likely to be paid by that customer. And if you have invoices due in 60 or 90 days, think seriously about using factoring to improve your cash flow.

Link: http://www.ifgetwork.com

Former President Bill Clinton recently spoke at the Summit Series, a three-day conference of networking, discussions and activities for young entrepreneurs, asking them to look beyond their own business ambitions and use their positions to benefit the less fortunate around the world.

Factoring has been popular internationally for quite some time, and in fact in some countries, total factoring volumes represent more than 10 per cent of GDP. Basically facilitates trade through a combination of financing, receivables collection and credit risk protection services that help solve the business challenges of late payments, cash flow or collection. The International Factors Group was established in 1963 as the first global association to facilitate cross-border factoring activities.

The trend today is for bigger and more professional factoring companies, like The Interface Financial Group, with more professional factoring clients, and more activity globally.

Link: http://www.ifgnetwork.com/solution.php

Accounts receivable factoring basically means that you are selling outstanding invoices or receivables at a discount to a finance or factoring company like The Interface Financial Group, IFG, who assumes the risk on the receivables and in exchange, provides quick cash to your business for the invoices. Accounts receivable factoring is also known as accounts receivable financing or accounts receivable funding. It is primarily used by businesses experiencing a cash crunch.

In order to decide if factoring could work for your business, you basically need to be trying to attaining capital for the company's growth, or to meet a cash flow shortage. And in today's economic climate, where loans and credit are limited, accounts receivable financing might be the ideal solution.

So what are the benefits of invoice factoring? 1) Collections are outsourced, which frees up resources so that you and your employees can focus on more productive activities; 2) Free up working capital tied up in inventory; and 3) Fast financing via accounts receivable factoring requires no business plan, tax statements or lengthy credit applications.

Link: http://www.ifgnetwork.com

Why is credit so important to a small business owner today? Lenders evaluate a number of credit factors when a potential borrower comes knocking. One key factor is known as resource management, a prime consideration when a lender is granting (or not) a loan. What this means is that you as an entrepreneur, along with any business partners, are capable of managing the business's resources.

Most lenders will look at working captial, debt to worth, and the rate at which income is received after you earn it. Also factors include the rate at which debt is paid after its due, as well as how fast your comnpany moves products and or services out to your customers.

This is where invoice factoring comes in insofar as a tool to assist your small business in building credit and good resource management. Let's say you have invoices outstanding that are due in both 60 days, and 90 days. But you have bills that must be paid this month, employees to pay, and new materials and supplies to buy for production in order to complete the next job.

Factoring is just another smart way to manage your money, and therefore establish better credit. A factoring company like IFG will simply take a look at your customers' credit (not yours) and can pay you the majority of what's owed to you within as little as 24 hours.