FactoringClub Blog

Every business that provides goods or services on trade credit terms has to wait for customer payments. No business should have to wait for cash. Factoring companies solve this problem by advancing cash upfront in exchange for their accounts receivables.

Payroll Funding

Payroll funding is the regular process or cycle of billing your customers, paying your employees and getting funded by a factoring company. It’s most often

Freight Factoring

Trucking companies all over the U.S. and Canada rely on freight factoring to generate the cash flow necessary to operate their businesses. Freight factoring companies

Federal Assignment of Claims Act

The Federal Assignment of Claims Act (FACA) offers protections and benefits to factoring companies that provide accounts receivable financing for government invoices. For assigned government contract

Bidding for Government Contracts

Requirements and qualifications Small businesses looking to bid for government contracts must know their North American Industry Classification System (NAICS) code and register with the

Government Contract Financing

Government agencies often take 30 days or more to pay their invoices, so government contractors turn to government contract financing for invoice factoring services or

Factoring Services

It’s important to compare different criteria when looking for factoring services. Factoring companies serve different industries, offer different rates, and provide different levels of customer

Tax Form 8821

Many factoring companies require tax form 8821 before signing a factoring services agreement. I recently had a factoring prospect applying for factoring services when she

Invoice factoring reserve for bad debts.

Factoring Reserves

Factoring companies typically don’t advance the full invoice amount because they hold back a reserve for contingency purposes. If you factor a $1,000 invoice and

Factoring Advance Rates

Factoring companies charge for their factoring services as a percentage of the full invoice amount. If you factor a $1,000 invoice with an 80% advance rate,

Online Lending

Online lending has made significant inroads into the small business lending market. Fast loans, quick turn-around, and easy approvals have made many online lenders an

Choosing a Factoring Company

Finding the right factoring company for your business requires diligence, but it’s time well spent and it can save you a lot of headaches and

Factoring Rates

Factoring rate structures come in basically two different varieties – fixed and adjustable. In recent years there have been many factoring companies offering what appears to

Factoring Credit Facilities

If your shopping for a factoring company, you need to consider the credit facility or credit limit available. Factoring facilities come in many sizes as

Non-recourse Factoring

If you’re looking for factoring services, you may have heard the terms recourse and non-recourse factoring. These are impressive legal terms that dictate what happens

Invoice Discounting

Invoice discounting and invoice factoring relate to similar forms of working capital financing. You get cash advances up-front for your invoices or receivables. In the

Collection Agencies

Improving cash flow through the use of factoring receivables is a smart way to free up resources within a cash-strapped company. It’s a simple and

Factoring Agreements

Invoice factoring services help businesses avoid the traditional headaches of collections and the lengthy collection delay from invoices that aren’t due for 30 or 60

Bank Lending vs Factoring

One of the primary reasons businesses choose invoice factoring or accounts receivable financing is because it’s an efficient way to ensure cash flow. There is