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What Kinds of Businesses Should Utilize Invoice Factoring


Invoice factoring is the sale of invoices at a discount in exchange for immediate cash. In this article I am going to list and discuss exactly which type of businesses are the best candidates to utilize this form of business financing. I am also going to describe the specific situations where invoice factoring works best.

1) Start Up Companies- It is very difficult if not impossible for a brand new company to qualify for a bank loan in today’s lending environment. It is basically required that a new business have 2 years of proven results. Compare that with invoice factoring, where all a new business needs to qualify are quality and creditworthy customers.

2) Rapidly Growing Companies- Companies that are growing very quickly but do not have enough cash flow to increase production and meet bigger orders are great candidates for factoring.

3) Seasonal Businesses- These are businesses whose sales and cash flow fluctuate so much throughout the year, that banks will not lend to them.

4) Labor intensive Industries- Companies that use many employees and need working capital in order to make payroll and pay for their employees health insurance plans.

5) Companies That Cannot Get A Bank Loan- There are many businesses that for a multitude of reasons cannot get financing from a bank and there are also many businesses who were given business lines of credit that have been subsequently been taken away by banks.

6) Banks That Need to Make Timely Tax Payments- Businesses do not want to fall behind on their taxes and have tax liens placed against the company

7) Companies that Have Trouble Collecting From Their Debtors- Any business that has to wait 30, 60, or 90 days to obtain payments from debtors but need money now to take on new business, are excellent clients for Invoice Factoring.

8) Get Discounts From Suppliers- Many companies can obtain 10 or 15% discounts from their suppliers if they can pay them back in 10 days or less.

9) Companies That Want To Avoid Debt- Businesses that want to avoid putting themselves in debt. With invoice factoring, there is no monthly principal and interest to worry about.

10) Companies That Want to Increase their Credit Rankings

11) Companies That Need Capital to Purchase New Equipment or Pay For Inventory- Factoring can provide a company with the working capital they need to purchase different items that are needed for the business.

12) Companies That Have Low Net Worth- Businesses with low net worth will have a very difficult time getting a bank loan however they will probably qualify for invoice factoring as long as they have good creditworthy customers.

There are many industries that utilize factoring successfully like:
• Manufacturers
• Wholesalers
• Distributors
• Janitorial Staffing
• Exporters
• Transportation
• Oil and Gas

In conclusion, Factoring can be a great tool for your business if it is used correctly. To determine if factoring is right for your business, you need to examine all of your available financing options. If your business has low profit margins then factoring is probably not a good fit. However If your business fits in one of the 12 categories I described above, then factoring may be your best available option.

New Year, New Business: Why an Accountant Is a Must-Have

With the economy still fragile, more and more people are considering self-employment. Chances are you probably know at least one person who has started his own business. Being your own boss can give you more freedom, job security and personal satisfaction. However, turning an idea into a fully functioning and legally registered company often involves a lot of work and questions. A professional tax and accounting service can help you get your business off to a great start, whether it’s a one person operation or a full-fledged corporation.

Getting Started

Having a well-thought out-business plan is essential for any new company. With it, you can identify your objectives, relevant marketing strategies and any short-term and long-term financial plans, all of which are keys to success. In addition to these services, business formation experts can give you a leg up on the competition when it comes to sourcing potential avenues for financing. Having enough capital at the start of your business will give you the financial resources you need to properly advertise, buy equipment or rental space or even meet payroll. Utilizing a professional will also allow you to accurately assess the amount of capital you have access to, preventing you from making costly financial mistakes during this critical startup step.

Company Structure

Determining the right structure for your business requires information that many entrepreneurs don’t readily know. In addition, each tax structure comes with its own unique benefits and potential drawbacks, specifically when it comes to taxes, asset protection and ease of operation. Professional tax and accounting professionals have years of experience helping new business owners and can quickly and painlessly help you figure out which structure is right for you. Likewise, if you think you might want to expand your business to other states, you’ll want to choose a very different structure than that of a company set on staying in one place. The structure you choose for your company will have financial and legal ramifications that may be difficult to undue so you want to be sure to choose wisely from the start.


More than 80 percent of all new businesses fail within the first 18 months. Financial mismanagement is often related to this failure. Once your company is up and running, there will be a lot of moving parts that need to be managed. Having a well-thought out business model is important, but the little everyday things can just as easily contribute to your undoing if not properly addressed at the onset. Reliable and easy-to-use accounting software sand a close relationship with a bookkeeper can save you hours of headache and prevent costly business errors. A cash flow budget is similarly important to day-to-day operations and will make sure that you have a clear understanding of what it takes to keep your company afloat during those challenging first few months and years. Expert guidance will give you the tools and information you need to become a success and not a statistic.

Starting your own company can be both exhilarating and frightening. There are many factors to consider, some of which you may not even realize. With professional insight and knowhow, you can get your business of to a strong start and enjoy a long a profitable future.

Uncommon Business Enhance Internet Marketing Plans And Strategies

Over the last few years, lots of businesses have expanded with right strategies. It is a complete science that has helped businesses achieve the level of success they dream of. This is every businessman’s dream to expand business to earn more revenue. Internet marketing for every sort of business is always time consuming. Lots of people find it very beneficial and it is also not difficult to do.

Here are a few uncommon ways of enhancing your business in a real way. First of all, take some time and look on the weak areas of your business. Write down all the things on a paper. Writing down things will make sure you never miss any important thing. Also, everything will be in front of you. You will be able to take care of a specific aspect of your business, whenever you get time.

One way to expand your business is to try hard to increase your product line and sales also. This will help you cover a large area of market and you will be able to make more customers as compared to before. Expanding your business will need a bigger space and your online presence will also be change. You will be able to add new products on your site, which will attract more customers.

It is very good idea to put new products with unique features in the market. Make a difference and try to introduce something which is not already present in the market. This can be done with the help of feedback you get from your existing customers. Actually your customers tell you the right direction of your business. After all, they are your customers who are responsible to run your business. Give them importance.

If your business is not doing well in one location, try to change the location if possible. You can try opening a new branch or shift to another location if possible. This may require some investment but it is required for business growth. People get impressed with chain of services. If possible, you can open a chain of your business in local market. If not possible, try to expand your business in international market as well.

For making presence in the international market, you can either franchise your business or give license of business to somebody else. This will be other person’s responsibility to run that business and you will earn good revenue. This is also important to make contacts in foreign market. You can also launch your business in international market through agents. Those distributors know how to bring your products or services to the people. Once your business makes an impact in the international market, you can yourself take some time from your existing business and go in person to open a new office in the foreign location.

If possible, you can merge with another similar business. This is good to work together as one brand. Two persons will be able to focus on one firm to bring it to top position. Also, you will share your customers too. When your customers will merge as well, you will get enhanced sales and revenue.

If you are unable to spare this much time, you can also acquire the services of business enhance internet marketing. They are professional people who know the latest trends that work in the market. Their qualified professionals will analyze your business and form a best possible strategy for your business. You will feel substantial difference in sales after availing their services.