For the most part, the cost and the type of business financing that is available to a client depends on the risk that this client represents to the finance company. The simple definition of risk as we define it is: what is the likelihood that the financing will be repaid?. This is determined by:

1. Your experience in the market
2. Your track record in the market
3. The strength of your customers
4. That strength of your balance sheet and income statement

Companies that score well on these items usually qualify for bank financing and can get very advantageous terms. And it makes sense, since the risk is low, the cost of funds should be low. Companies that don’t qualify for bank financing usually have to look for alternative options. Companies that offer alternative financing, such as factoring, are used to working with companies that have higher risk profiles. B Read full post…

During the downturn, companies focused primarily on improving operations and maintaining existing business relationships, but according to a recent survey The Receivables Exchange conducted with CFO magazine, most small and midsize businesses will fuel growth this year by selling to new customers, which will be highly capital-intensive. How will companies fund an influx of new business as the economy (we hope) improves? One thing companies will surely need – in order to take advantage of growing demand – is ready access to affordable working capital.

We’d like to know: Is your company seeing an increase in demand in 2011, and how is this affecting cash flow? Would a more flexible, affordable source of working capital allow you to take on more business? Leave a comment or tweet your answer (@receivables).

One area of the factoring industry that has been showing growth is transportation factoring financing transportation carriers and brokers. I suspect that the nascent economic recovery has a lot to do with it since the transportation industry is a backbone of the economy.

However, it’s common for small and growing transportation carriers and brokers to run into cash flow problems at one time or another. One one hand, they have expenses that have to be paid quickly such as fuel, repairs and drivers. On the other hand, shippers usually pay for their loads in 30 to 60 days. And to cap it all off, the recent recession has depleted most financial reserves. This creates a tug of war between income and expenses. And one way to solve this problem is to use transportation factoring.

Transportation factoring offers a simple solution to this problem it accelerates revenues that are tied to slow paying invoices. This p Read full post…

Small and midsize businesses are turning to a growing number of online technology services to take control of their working capital, according to a recent article in The Wall Street Journal. Among other benefits, new technologies are making billing and payment “as seamless — and hard to avoid — as possible.” Services to help businesses track billable hours and automate their invoicing processes, agencies that provide instant credit reports on potential clients, third-providers that ensure payments are made promptly – they’re all part of a great technological advance in working capital management in the past few years that amounts to a revolution.

Emerging technologies are completely changing the way companies handle their cash flow. Gone are the days of checks getting “lost in the mail,” or companies risking their customer relationships just to generate sufficient cash flow to run their business. We at The

Read full post…

Every week we get applications from prospects whose businesses and past experiences have “blemishes”.  In many cases, it seems that these companies are making a heroic “last ditch” effort to try and get business financing. There is nothing wrong with that……. except their approach. You see, many of these prospects tend to avoid mentioning the (known!) problems and only focus on telling us the nice things about their company. However, every factoring company does their due diligence with the specific intent of finding if prospects have problems. And factoring companies are known for being thorough in our research and will find most of them. For example, a simple public records search will show:

1. Lawsuits
2. Judgements
3. Liens (good and bad) 
4. Tax liens
5. Bankruptcies
6. Criminal backgrounds

Things get complicated when a prospect paints a rosy picture of their business only to have us find out that they have some (or all) of items 1 through 6. Fro Read full post…

Are you planning to begin a online organization, it is essential that you must understand the organization taxation program. Tax accountants can help you in the taxation aspect of establishing up your organization. It’s essential that you computer file your tax comes back on time and perfectly to remain in conformity and to avoid costly charges.

It’s uncomplicated to begin a business; you only thing you need a organization certificate if you make a limited organization, and when you’re organization is really little, you’re free from VAT. Although, limited organization or not, online organization or large, you’re required to computer file yearly tax comes back. Again, the standard business tax rate is already little, but you can ask tax accountants for guidance regarding tax-efficient components that can work for you.

With regards to home taxation, if you’re a non-resident entrepreneur, you are better off in a way because you are the only subject to taxation depending on the source earnings in that country of wish. Read full post…

If you’ve been accessing capital through traditional methods, you may be missing out on a large chunk of cash – and the opportunities that go with it. That’s why The Receivables Exchange developed a Capital Access Calculator to illustrate the benefits of the Exchange’s working capital financing solution to small and midsize businesses. 

The calculator gives businesses a quick estimate of the capital they can access on The Receivables Exchange – based on their revenue and current financing – and shows how the additional capital measures up to their current need. It’s a fast and easy way for businesses to see what receivables financing can do for them. Try this innovative working capital tool out today!