Business Financial Fitness Blog | Gateway Commercial Finance

Factoring Agreements Explained: Structure, Risks, and Examples

This comprehensive article delves into the intricacies of factoring agreements, offering a detailed exploration of their definition, typical clauses, and real-world examples. Covering essential terms, such as purchase price calculation, advance rates, and miscellaneous fees, it provides invaluable insights for those seeking to understand or enter into factoring contracts.

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Debtor in Possession (DIP) Factoring – Getting Business Financing During Bankruptcy

This article outlines the benefits of obtaining Debtor-in-Possession (DIP) financing for Chapter 11 bankruptcies, detailing the types of lenders and financing options available, including term loans, revolving credit lines, and invoice factoring. It emphasizes the collaborative approach between Gateway Commercial Finance and bankruptcy attorneys to facilitate pre-petition, post-petition, and exit financing, crucial for successful business reorganization and recovery.

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5 Must-Have Money Management Apps for Small Business Owners

Struggling to manage your business finances? Explore five apps offering real-time insights into cash flow, loan costs, currency exchange rates, expense tracking, and project budget management.

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Invoice Factoring Addresses The Funding Needs Of Small Businesses

When big corporations hit cash flow problems, they have options like selling assets or securing credit. But for small business owners, access to such resources is limited. Invoice factoring offers a solution, allowing them to sell outstanding receivables for immediate cash advances, providing relief from cash flow challenges.

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Receivable Factoring Companies Supply The Essential Cash Flow For Business Success

When banks won’t assist due to lack of credit history, receivable factoring companies offer a lifeline. These firms quickly convert outstanding invoices into cash, ensuring businesses get the money they’ve already earned without waiting for client payments. With no need for credit information, the application process is streamlined, providing rapid access to funds to stabilize cash flow.

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How Do NATE Members Use Invoice Factoring

The article discusses the challenges of managing cash flow for small businesses experiencing rapid growth, using a hypothetical tower company as an example. It highlights how invoice factoring can provide a flexible solution to improve cash flow management and mitigate risks associated with delayed payments, enabling businesses to focus on growth and operational efficiency.

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When to Use Invoice Discounting Factoring

Invoice factoring, particularly invoice discounting, offers accessible funding for a wide range of businesses, including startups, companies with operating losses, and those in rapid growth or bankruptcy. It provides a flexible financing solution that grows with the business, offers credit protection, comprehensive reporting, and peace of mind regarding cash flow stability.

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How to Sell Account Receivables to Factoring Companies

Selling accounts receivables to factoring companies offers a swift solution to cash flow challenges for organizations. It provides quick access to working capital by selling unpaid invoices, regardless of financial condition or industry. This financing option offers benefits like immediate cash flow, flexibility in invoice selection, and assistance with receivable management and collections.

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Cash Flow Solutions For Businesses With Bad Credit

For businesses facing cash flow challenges due to bad credit, alternative funding options exist beyond traditional lenders. Options like receivable factoring provide quick access to cash by selling outstanding invoices to factoring companies, irrespective of credit status. Other solutions include revenue-based loans, merchant cash advances, or partnering with individuals with good credit to access more favorable loan terms.

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6 Tips for Dealing With Your Business’ Next Cash Crunch

When facing a cash flow crisis, businesses can negotiate with vendors for payment extensions, sell unused assets, offer discounts on outstanding receivables, or run flash sales to generate immediate cash. Alternatively, they can seek assistance from factoring companies to receive cash advances against outstanding invoices, regardless of credit status, providing a quick solution to liquidity issues.

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Payroll Pressure: 4 Emergency Tactics to Get Cash To Pay Your Employees

Facing a severe cash crunch, ensuring payroll becomes a top priority for business owners. Immediate actions include offering discounts on outstanding receivables, organizing flash sales, engaging employees about the situation for potential solutions, and considering partnering with a factoring service to quickly secure cash against outstanding invoices.

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Invoice Factoring Accounting in QuickBooks: Step-by-Step Guide

This 38-page guide offers a comprehensive step-by-step approach to recording invoice factoring in QuickBooks, covering essential topics such as adding necessary accounts, selling invoices to factoring companies, collecting factored and non-factored invoices, managing uncollectible invoices, recording fees and charges, and handling reserve releases.

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The Walmart problem: What to do when your biggest client wants to extend payments

Facing extended payment terms from a major customer can severely disrupt your cash flow, but it’s crucial to remember that you don’t have to accept their terms blindly. Instead, consider your leverage, communicate with the right people within the customer’s organization, know their payment history, and explore options like incentivizing early payments or utilizing invoice factoring to ensure a win-win situation for both parties.

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7 Tips for negotiating better payment terms with your suppliers

Improving your business’s cash flow can be achieved by extending payment terms with vendors, essentially obtaining a short-term loan that allows you to retain cash while continuing operations. Effective negotiation strategies, including good communication, understanding the vendor’s business, and offering mutually beneficial propositions, can significantly increase the likelihood of success in lengthening payment terms.

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