An In-Depth Look at Invoice Factoring, Technical Terminology, and Other Resources to Help You Learn About This Fantastic Funding Source.
Basic Factoring Questions
For many new or growing business owners, invoice factoring is a great tool to allow investment in growth, smooth out cash flow, and meet immediate costs. And, while it is a business financing tool that has existed for hundreds of years, most business owners have never heard of it or are unfamiliar.
Common Factoring Terms
As with any other industry niche, invoice factoring has its own set of terms and definitions that are used commonly to transact business. The following is a listing of the most commonly used terms and their definitions for ease of understanding.
Factoring and Credit
One of the main selling points of factoring is its flexibility and streamlined set of qualifications. Many businesses that are unable to secure funding through traditional means are often able to obtain funding through invoice factoring. This guide explains.
Deeper Dive
A More Detailed Look at the Technical Questions About the Specific Parts of Invoice Factoring
What is a Notice of Assignment?
A factoring contract can contain many parts, but few are as important as the Notice of Assignment. When a company is factoring their invoices, what they are agreeing to do is assign their accounts receivables to their factoring company, who in turn has the right to…
Recourse vs. Non-Recourse Factoring
Even people who are familiar with factoring might not know that there are, in fact, two different types of factoring – recourse and non-recourse. The differences between these factoring programs are large, and so it is important to know what they are…
What is a Minimum?
Factoring programs vary from company to company. Each company has structured their factoring programs in an effort to be competitive, fit a desired industry profile, or based on hard-won expertise or experience.
The Uniform Commercial Code and Factoring
As with any financial service industry doing business today, invoice factoring has a set of rules and regulations that govern how it operates in the market. These rules protect both consumers and service providers. Consumers can confidently do business…
Invoice Factoring Myths and Misconceptions
Even though invoice factoring has existed for hundreds of years as a source of business funding, it is still not well understood by many businesses. As a result, there are many misconceptions about what factoring is. The following are examples of…
The Invoice Approval Process
One of the most critical components of the factoring process is the invoice approval process. Since it can also be the cause of most factoring roadblocks, it can be frustrating to both the factoring client and the factor. This primer is…
Additional Resources
An Assortment of Helpful Pages Covering Additional Invoice Factoring Topics.
Benefits of Factoring
While factoring is commonplace in many parts of the world, in the US many businesses aren’t sure how it can help their business grow. Factoring is simple to apply for and can be very flexible for your business. For example, factoring allows a company’s…
Factoring vs. Bank Loans
There is no more important question than how to fund your business. In tough economic times many traditional sources of business funding dry up. Banks change their lending requirements regularly, oftentimes making it harder to qualify for financing.
What is Factoring
What is factoring? Factoring is a very simple process, which makes it a desirable alternative to more traditional sources of business funding. Read our infographic below to see how simple factoring your invoices can be.
Things to Consider When Choosing a Factoring Company
While every company that offers invoice factoring offers a largely similar service to every other invoice factoring company, not every factoring company is the same. On the contrary, there are substantial differences between companies that can…