Factoring On The Go With The New VendorFind App

March 8th, 2012

Having access to high quality, low cost service providers can help move any business forward. Our new app gives you a simple and cost-effective way to connect with the best business services for your needs.

The VendorFind app features all of InsideUp’s 20 business service provider categories, including VoIP, call center, payroll, human resources, business internet,  web development,  credit card processing, collection agencies,  business cash advance and many more.

Are you looking for factoring companies?  VendorFind will let you tap into InsideUp’s comprehensive knowledge base to learn about factoring services before you make your decision and choose a vendor.

You’ll also have access to tools such as informative videos, wikis, vendor ratings and “Quick Guide” overviews of each category including factoring. Easily link to our Facebook, Twitter, YouTube and LinkedIn pages for additional information and special deals from select vendors.

Once you’ve found the service you need, simply submit a quick survey to be instantly matched with vendors that fit your criteria–and receive custom, competitive quotes from multiple providers. Have additional questions about business services? Simply click on our phone number displayed on the app to speak to a representative.

Finding qualified service providers has never been easier! Say you’re meeting your business partner to discuss your new factoring campaign. Simply access the factoring category on your mobile phone to start receiving quotes from pre-screened factoring agencies. You could realistically save up to 60% on factoring services for your next campaign. And that’s just one example; with VendorFind at your fingertips, you can be sure you never pay too much for the business services you need.

The VendorFind app is a real time-saver for businesses that don’t want to advertise for a service provider and then face the ordeal of researching each provider to find the one that best matches their needs and budget.

Download the free VendorFind app today and see how easy it is to connect with the business services that will help your company grow.

 

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Important Qualities to Look for In a Factoring Service

September 24th, 2011

Professionalism–your factor will be collecting payments from some of your most important customers, so be sure to choose a company with a high degree of professionalism and excellent customer service.

Experience level–again, you want your customers or clients to be treated well, and an experienced factoring provider will likely have developed top quality customer service skills.

Accessibility–You will need to communicate frequently during the application process and possibly throughout the repayment process.

Knowledge–The provider should be able to explain the application and repayment process thoroughly and answer any questions you may have.

Reputation–Look for an invoice factoring service with a solid and established history in providing financial services to businesses similar to yours.Once you have narrowed your choices, asking each provider a few key questions will help you select the right factoring service for your business.

Find out whether the factor is open to accepting fewer invoices with larger amounts. This can lower your fees and save time for the factoring service.

Ask the provider if you might be able to negotiate for a higher amount of cash up front. Will the factor allow for a larger sum in the beginning of the accounts receivable financing process, in exchange for a higher discount rate.

Inquire about the factor’s collection process. Find out how how much time they allow each debtor to pay their invoices. How does the company deal with past due accounts? At what point do they turn a debtor over to collections? Ask for a sample of a typical collection letter. Make sure the wording is courteous and professional.

Finally, be sure your factoring service vendor provides web access and 24-hour consumer support both online and by phone.

A quality factoring service provider can be an immense help in keeping your business on track and reaching your goals. InsideUp can help you find a factoring service that matches your company’s needs when you use our business matching service to receive custom quotes from pre-screened providers.

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Tips for Choosing a Factoring Company

September 24th, 2011

When choosing a receivable factoring service, look for one that provides digital invoicing to bill your customers, accepts digital payments, and can deliver your money wirelessly. Paperless processes will save you cash and minimize the personnel expenses associated with printing and mailing invoices, and processing incoming payments.

Reputable invoice factoring providers use sophisticated credit score screening applications that are not widely available to smaller companies. This can be a great help in making wise decisions when extending credit to your customers.

It‘s also important to find a factoring service that provides data encryption and other safety features. Look for security icons from companies such as VeriSign and GoDaddy. A small padlock icon should appear when engaging in secure transactions with the company.

There are two types of factoring agreements: recourse and non-recourse. With recourse factoring, you are obligated to pay for any funds the factor does not receive from the debtor. This is a less expensive option than non-recourse factoring. If you choose non-recourse factoring, you will pay higher fees, but the factor will take on all the risk.

Research the history of several providers to find out how long they have been in the business, and what companies they have worked with. You will want a provider with a strong background and experience in helping businesses with their financial needs. Talk to several providers to get an idea of which one will be the best match for your company.

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Using a Factoring Service to Obtain Needed Funds for Your Business

September 24th, 2011

Using a factoring service to obtain cash for your immediate needs will allow your company to maintain a smaller ongoing cash balance. Factoring services are used when a firm’s available cash balance is insufficient to meet its current obligations and promote business growth.

Factoring is a financial transaction whereby a business sells, at a discounted rate, its accounts receivable, or invoices to a third party, called a factor, or factoring service. Factoring services can make funds available even when a bank loan is not feasible because the primary focus is on the credit worthiness of your company’s debtors.

Invoice factoring can help businesses to improve their invoice collection rates as factoring services handle all aspects of accounts receivable for a company. Some businesses enlist the help of a factoring service if they are unable to collect on an invoice.

If your business qualifies, the process for obtaining a business cash advance is quicker and easier than applying for a traditional business loan. Factoring is different from a bank loan in three important aspects:

  • The factor does not give you a loan; factoring is the sale of your financial assets–your receivables.
  • Factoring focuses on the value of your receivables rather than your company’s credit worthiness.
  • Factoring involves three parties: the company selling receivables, the factor purchasing them, and the debtor. Bank loans are simply a contract between two parties.

Your receivables constitute a financial asset based upon money owed to you by your customer, the debtor, for goods or services. You, the seller, can sell one or more of your invoices, or receivables, at a discount to the third party, the factor, in exchange for cash. The factoring company will then use its own resources to collect on the invoice, allowing both the business and the factoring company to receive payment.

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Is Factoring Right For Your Business?

September 24th, 2011

Receivable factoring services can be an ideal solution if:

  • Your business is seasonal in nature or if you have a number of clients who take two or three months to remit payments. Factoring can help you maintain a steady cash flow by selling these accounts at a discount. Not only does this give you the immediate cash you need, but it also transfers the risk and responsibility for collecting payment onto the factor.
  • Your business could use an immediate boost from a lump sum of cash, but you don’t qualify for or prefer not to obtain a traditional loan.
  • You want a greater degree of flexibility than a traditional loan would offer. Factoring service agreements come with flexible repayment terms and are typically more open to renegotiation than traditional loans.
  • You need to avoid additional credit obligations. Because factoring is not the same as a loan, your advance will not appear on your credit report.
  • Repaying the factoring service will not create excessive financial strain for your company. Keep in mind that your payments will be based on a percentage of your sales and will increase or decrease according to your sales volume.
  • Your company’s sales are projected to remain steady or to increase and you have a substantial amount of receivable accounts
  • You do not own property or equipment that could be used as collateral to obtain a bank loan.
  • You have credit worthy customers. Your fees will be lower when there is less risk of default. Some factoring service providers will agree to purchase only a specified portion of your customer accounts or invoices, allowing you to maintain control over some of your receivable accounts.

When shopping for a factoring service, look for a company that has a high advance rate for invoices, offers fast payment on invoices, has appropriate invoice management tools, and has a good reputation for collecting payment from customers. It may be helpful to review several different factoring service providers before selecting the company that’s best for your needs.

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Quick Guide to Factoring Services

September 6th, 2011

Commercial factoring can be helpful for many companies, regardless of business size or success. If your company’s outstanding invoices total an entire month’s revenues or more, it can be difficult for your business to function while you wait for the money to come in. By using commercial factoring for your accounts receivable, you get the funds quickly, allowing you to concentrate on growing your business while a third party collects the owed money.

How does invoice factoring work?

Factoring is different from a bank loan in three important aspects:

  • The factor does not give you a loan; factoring is the sale of your financial assets–your receivables.
  • Factoring focuses on the value of your receivables rather than your company’s credit worthiness.
  • Factoring involves three parties:the company selling receivables, the factor purchasing them, and the debtor. Bank loans are simply a contract between two parties.
Your receivables constitute a financial asset based upon money owed to you by your customer, the debtor, for goods or services. You, the seller, can sell one or more of your invoices, or receivables, at a discount to third parties, the factoring companies, in exchange for cash. This transaction essentially transfers ownership of the receivables to the factor, who is then entitled to receive any payments from the debtor toward the invoice amount.The factor is solely responsible for collecting the debts and also accepts any loss should the debtor default on the loan. Once the sale of the receivables in complete, the debtor will be notified of the sale and the factor will bill the debtor for the amount of the invoice.The factoring transaction has three key parts:
  1. The advance, which is a percentage of the value of the invoice. This is the amount that the factor pays the seller.
  2. The reserve, which is the remainder of the total invoice amount. This amount is paid back to the seller when the debtor pays the invoice.
  3. The fee charged the seller for the transaction. This is deducted from the reserve that is paid back to the seller.

Some factoring services will charge the seller not only a service fee, but also interest based on the length of time the factor must wait for payments from the debtor. The factor may also deduct a projected amount to cover the possibility of the debtor’s non-payment of the debt. This would further reduce the total amount paid back to the seller. The total profit the factor receives is the difference between the price paid for the invoice and the amount received from the debtor.

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