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Month: September 2009

Finance Your Business With Invoice Factoring

Invoice factoring is a short-term financing vehicle that makes operating businesses with long revenue cycles – hospitals, temporary agencies, IT agencies and commercial printers – easier.

Invoice factoring allows businesses to avoid the problem of slow-paying clients. As long as the business has positive operating cash flow, invoice factoring can be used as an alternative.

Get Cash Quickly With Invoice Factoring In Atlanta

Invoice factoring is a convenient way to get the cash your business needs – quickly, without the challenges of financing that can come with banks. There is no debt to repay or financing to arrange.

 Here’s how it works: Let’s say your company gets paid by invoice by clients every 60 days. A factoring company would purchase a company’s invoices at a discount.

Now, instead of the company waiting for months for the client to pay the invoice, the company gets immediate cash and access to working capital.

The Benefits Of Invoice Factoring

Factoring is a fast, easy and flexible way to improve cash flow and generate working capital.

It’s not new: Invoice factoring has existed for centuries and is one of the oldest forms of financing in the world. 

Invoice factoring has exploded in popularity in recent months as banks have cut off access to funding to even more established and credit-worthy customers.

It’s a great tool for businesses who need cash to expand.

For more information about how invoice factoring in Atlanta can benefit your business, visit MDS Funding at http://www.MDSFunding.com, contact MDS Funding at 866-394-4637 or email CashFlowConsultants@mdsfunding.com.

 

The Benefits Of Invoice Factoring

Looking for a way to finance your business with no debt and no banks?

Try invoice factoring. It’s a great way for companies with slow-paying clients to get cash fast — without the hassles of traditional bank financing.

Let’s say a company invoices clients $10,000 every month. But next month it is preparing for a trade show and needs extra cash. Problem is, traditional banking sources have all but dried up; even the most financially stable companies find it hard these days to get a loan.

That’s where invoice factoring comes in. A factoring company would purchase the company’s invoices at a discount. Now, instead of the company waiting for the client to pay the invoice, the company gets immediate cash. 

Factoring is a fast, easy and flexible way to improve cash flow and generate working capital. It’s been around for centuries and is one of the oldest forms of finance.

 It is still used today — even more so with the state of the economy.

Here are some benefits of factoring:

  1. Increase cash flow with no debt. 
  2. Less hassle than a bank loan.
  3. Get cash in 24 hours.
  4. Eliminate long billing cycles.  
  5. Add capital to your business without loans.
  6. Settle past due operating expenses.
  7. Pay off bills.
  8. Increase marketing efforts.
  9. Provide consistent weekly cash flow.
  10. Reduce bad debts.

For more information about how invoice factoring can benefit your business, visit MDS Funding at www.MDSFunding.com, contact MDS Funding at 866-394-4637 or email CashFlowConsultants@mdsfunding.com.

Vendor Insta-Pay Offers Payment Solutions

The good news: Your company just snagged a lucrative government contract worth millions.

The bad news: Figuring out how your company will pay its vendors, especially with net 30 terms as many government contracts require.

The solution? Vendor Insta-Pay (VIP).

Vendor Insta-Pay is an excellent program for the following reasons:

1. It helps vendors. Often, net 1-day terms may not be in your company’s best interest. So it makes sense to use someone else’s money instead of tying up your own — at no cost to  you.

2. It can be profitable. Stretching dollars longer makes good financial sense — and more profits. For example, it may be financial advantageous for a company that paid its vendors in 30 days to use VIP to pay their vendors in one day. The company would reimburse VIP in 60 days.

3. More profit. You can use the VIP program to drive revenue at your company by turning account payables into profits.

4. Expand business to subcontractors. Employing disadvantaged, women and minority-owned businesses can make the difference in winning or losing government contracts. 

But many of these small vendors can’t do business with a net 60-day payment cycle; the cost and labor output is simply too much for them to bear. VIP can help you quickly pay those vendors in one day — which could open the doors to more work with minority or disadvantaged firms.

5. Costs are lower. Some banks offer similar programs, but at hefty fees and lower financial limits because it is treated as a line of credit. The VIP program is unsecured at available at no cost. It can be implemented in as little as two weeks.

For more information about how VIP can help your business pay its vendors,  visit MDS Funding at www.MDSFunding.com, contact MDS Funding at 866-394-4637 or email CashFlowConsultants@mdsfunding.com.

Financial Solutions For Government Contracts

Doing business with federal, state and local governments is a major accomplishment for any company, but only if you can afford the overhead costs that can come with it.

That’s where MDS Funding comes in. We help companies with government contracts to access unlimited working capital using invoices (account receivables).

This practice is known as factoring government accounts receivables. The purpose is to help growing businesses avoid cash flow problems that can happen as a result of government contracts.

Instead of waiting 60 days or more to get reimbursed by the government, companies can use factoring to receive payment in as little as two to three business days.

Quicker Payments, More Government Opportunities

This accomplishes two goals: First, cash flow improves because factoring  funds your payroll instead of a bank loan. Second, factoring allows you to compete with larger vendors for contracts because it puts you on the same financial playing field as much larger firms.

Further, government receivables qualify for factoring under the terms of the Assignment of Claims Act of 1986.

For more information about factoring government receivables, visit MDS Funding at www.MDSFunding.com, contact MDS Funding at 866-394-4637 or email CashFlowConsultants@mdsfunding.com.

Asset-Based Lending Offers Solutions When Banks Say “No”

As credit markets tighten to even the most established and well-respected firms, businesses have rediscovered that asset-based lending is a  a lifesaver to companies that would otherwise not get funding.

Asset-based lending has become an increasingly popular option that has only attracted more attention as more companies find it virtually impossible to obtain financing through traditional means.

What is asset-based lending? Asset-based lending is financing backed by a company’s assets. It offers many advantages for businesses that are growing, but are in debt.

Asset-based lending allows companies to finance their businesss – without taking on additional debt using their assets. This is particularly important for companies who are watching their debt-to-income ratios, yet need capital for expansion.

Asset-based lending offers viable solutions to financing.

What makes asset-based lending different?

Instead of traditional bank loans, asset-based lending borrows against a company’s assets — account receivables, inventory and equipment. It is a great option for companies who need to finance their operations, yet don’t want to take on significant debt.

Unlike traditional bank financing, there’s much less paperwork  and hassle involved with asset-based lending.

Businesses like wholesalers, retailers, distributors and service companies often use this form of lending to generate cash.  It allows them to get cash sooner than they would if they had to wait weeks or months for inventory to sell and become account receivables.

Asset-based lending offers valuable solutions to many financing challenges.

For more information about how asset-based lending can benefit your business, visit MDS Funding at www.MDSFunding.com, contact MDS Funding at 866-394-4637 or email CashFlowConsultants@mdsfunding.com.

Add New Equipment Affordably With Equipment Leasing

At some point, you’ll have to buy equipment to operate your business.

But, especially for start-ups with little revenue, the cost of the equipment can exceed what’s in your operating budget. Many businesses have found that equipment leasing is a viable alternative.

When cash is tight, it makes more sense to lease equipment as opposed to buying it outright. 

There are many benefits to equipment leasing:
 Leasing is simple and convenient. It allows you to have the equipment you need  when you need it.

ï‚· Economically, leasing makes sense. There’s less upfront capital invested than if you were to buy equipment outright.

ï‚· With 100% financing, leasing puts working capital to work for your company.

ï‚·You  pay for equipment today using tomorrow’s dollars. Leasing serves as a hedge against inflation, ensuring that your purchase don’t lose value over time while you are stuck paying for equipment that has depreciated and no longer has the same value.  

ï‚· You can easily upgrade. Adding new equipment is as simple as making a phone call. You don’t have to sell existing equipment to raise cash for new purchases.

ï‚· Leasing can pay for itself with revenue enerated from the use of the equipment.

You can lease many types of equipment: office phone systems, computers and software, office furniture, vending machines, medical equipment, factory machinery and trucks.

For more information about how equipment leasing can benefit your business, visit MDS Funding at www.MDSFunding.com, contact MDS Funding at 866-394-4637 or email CashFlowConsultants@mdsfunding.com.

Free Up Cash Flow By Leasing Equipment

Leasing new business equipment isn’t just for businesses short on cash. It’s also a smart business strategy for businesses that want to free up cash flow.

Equipment leasing is such as popular strategy that more than 80 percent of all businesses lease some or all of their equipment, according to the U.S. Department of Commerce’s Bureau of Economic Analysis.

Many types of businesses lease equipment, but they all have one thing in common: They all need updated equipment. Businesses such as industrial firms, trucking companies, commercial painters and hospitals and medical firms lease equipment.

Leasing business equipment is a lot more common than you probably thought.

A key advantage of leasing equipment is that it allows companies to keep up with rapidly changing technology. Equipment such as computers and communication equipment change overnight.

Many businesses lease the equipment instead of buying it to avoid paying for outdated equipment over time. Instead, they lease equipment and upgrade it with more modern equipment as technology upgrades.

For more information about how equipment leasing can benefit your business, visit MDS Funding at www.MDSFunding.com, contact MDS Funding at 866-394-4637 or email CashFlowConsultants@mdsfunding.com.