Struggling with slow-paying customers or long NET terms? An invoice discounting facility may be the fastest way to unlock trapped cash and stabilize your operations. Internationally, businesses use invoice discounting to free up cash tied in receivables, but in the United States, the same process is known as invoice factoring, the sale of invoices to […]
Invoice Discounting: Unlock Working Capital Without Debt Show Me More »
Invoice financing and invoice factoring both unlock working capital from invoices, but mechanically, they work differently. Factoring is the sale of invoices to a third party, while financing lets you borrow against invoices. Cash flow remains one of the biggest challenges for businesses, with billions tied up in unpaid invoices at any given time. According
Invoice Financing vs Invoice Factoring: Key Differences & Benefits Show Me More »
Late payments are, without a doubt, one of the most common headaches for small businesses. Often operating on lean budgets and quick working capital cycles, having access to cash is crucial. However, being too aggressive in your collections process can potentially lead to damaged client relationships. Gateway Commercial Finance, an invoice factoring company, put together
The first 48 hours on a past-due invoice: A no-stress game plan Show Me More »
The box truck business is all hustle. For many truck drivers and delivery services, waiting up to 90 days to get paid makes it hard to keep up with fuel, maintenance, and payroll. This delay hits especially hard for startups or owner-operators who rely on fast-moving cash flow to keep their wheels turning. Invoice factoring
Why Invoice Factoring Works for Box Truck Businesses Show Me More »
This article presents benchmark data on typical NET payment terms across eight major industries, based on insights from over 1,000 factoring clients. By understanding what’s standard in your sector, you can better negotiate terms, manage cash flow, and stay competitive. Use this research as a practical reference to compare your company’s payment practices with industry norms.
NET Terms by Industry: Key Insights for Businesses Show Me More »
This in-depth guide explains how factoring companies evaluate the creditworthiness of your customers—an essential step in determining your eligibility for invoice factoring, as well as the terms you’ll receive. It outlines the tools factors use, such as credit reporting agencies and credit insurance providers, and details how elements like customer concentration, industry risk, and payment history influence decisions. It features 15 real-world examples to illustrate how various scenarios impact funding outcomes and offers actionable tips for businesses seeking better factoring terms.
How Factoring Companies Assess Customer Creditworthiness (15 Examples) Show Me More »
When searching for a factoring company, many businesses look for one “near me”, but in today’s digital world, location is no longer a deciding factor. In this article, we explain why remote factoring is just as effective (if not better), how some companies create the illusion of being local, and what you should really look for in a funding partner.
Why Your Factoring Company Doesn’t Need to Be Local Show Me More »
Ensuring a steady cash flow is a frequent challenge faced by all businesses. Many entrepreneurs explore solutions to address the lag between sending out invoices and receiving payments, with debt factoring being a viable option. Nevertheless, it’s crucial to thoroughly evaluate this funding source’s processes, advantages, and potential downsides before determining if it suits your business needs.
Is Debt Factoring Right for Your Business? A Detailed Analysis Show Me More »
The article underscores the critical role of cash flow management for startups post-launch, often overlooked despite initial success. It advocates for invoice factoring as a proactive solution to sustain operations and propel growth, offering a lifeline for startups to navigate financial challenges and achieve long-term success.
Get Your Start-Up Off The Ground With The Help Of Invoice Factoring Show Me More »
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.
Factoring Agreements Explained: Structure, Risks, and Examples Show Me More »
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.
Debtor in Possession (DIP) Factoring for Bankruptcy Show Me More »
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.
Invoice Factoring Addresses The Funding Needs Of Small Businesses Show Me More »
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.
Receivable Factoring Companies for Cash Flow Show Me More »
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.
How Do NATE Members Use Invoice Factoring Show Me More »
