Make sure you understand a factoring company's fee structure. Beware of "hidden" fees that cover money transfers, software, collateral and other business costs. Ask if the factor charges only a flat fee, which is a percentage of your total invoice value. Be prepared to negotiate the removal of these fees if they exist or choose a factoring company that doesn’t charge them.
As a business owner, you understand how having a strong credit score can improve your chances at securing funding at affordable rates and attracting new customers.
Gaining access to solid credit data about other companies can be just as crucial to your success. In fact, having this kind of analysis at your fingertips will help you find more reliable customers and business partners, while avoiding some regrettable decisions.
Factoring is a great way to build up your company's cash flow. However, some factoring companies are much more reliable than others. To find a provider that will best serve your business, you need to avoid these common factoring pitfalls:
There are many reasons to be optimistic about how your business will perform in 2017. Consumer spending is rising, manufacturing and transportation are rebounding, capital spending is increasing, and a new president takes office later this month.
The new year is a good time to adopt some measures that help your business capitalize on an improving economy and get through the sluggish times as well. Here are five steps that will get your business on stronger financial footing and poised for future growth:
Donald Trump won the U.S. presidency due in large part to his promise to lower income taxes for individuals and corporations.
Since Trump will work with a Republican-led Congress next year, there is a good chance that a tax reform bill will be passed. Those changes to the tax code could affect how much you and your business pay in taxes for 2017.
As a business owner, you have little control over how soon your customers pay you. However, there are a few things you can do to help shorten the payment cycle. One is to examine your accounts receivable process. If your company’s cash flow is suffering because of the amount of time it takes customers to pay, you can take steps to fine-tune your movement of receivables.
Here are some questions to ask when analyzing your company’s accounts receivable process:
If your company works in aviation and aerospace, you know first-hand how much the industry has grown in recent years.
The demand for third-party professional services can be seasonal and inconsistent, which makes it challenging to manage and forecast your company’s cash flow. The 30 to 60 days spent waiting on customer payments can also deplete the amount of cash flowing into your service business.
With the increased popularity of organic and healthy foods, this is an exciting time to be in the food and beverage industry. However, the demands of consumers and retailers can put a lot of pressure on cash flow for companies that make and distribute food products.
Medical innovations and an aging population ensure that health care will continue to be one of the fastest-growing industries in the U.S. Still, health care manufacturers and service provides must cope with long payment cycles that can limit their cash flow.