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Month: December 2009

How Invoice Factoring Can Benefit Your Business

Once thought of as untraditional, invoice factoring in Atlanta is mainstream.
Tighter lending standards have all but forced businesses to consider factoring, after credit has been largely cut off. Now, invoice factoring — the process of selling a discounted invoice to a third-party –provides operating capital with no loans, no banks and no debt.

Increasingly, businesses now think of it is thought of as a viable alternative. It’s now not uncommon for companies to factor their invoices.

The Advantages Of Invoice Factoring

There are many advantages, but  there is one main benefit: Factoring provides immediate cash to companies that can’t wait 30, 60 or 90 days for clients to pay their invoices.

Factoring gives businesses cash upfront for the invoices. And now you have the operating funds to expand your business, meet payroll and cover other expenses.

There are many reasons businesses use it:

*Get working capital
*Relieve stress from no-pay and slow-pay clients
*Fill more orders
*Increase sales with flexible funding
*Take advantage of vendor discounts
*Fund payroll and taxes
*Extend credit to customers on large orders
*Buy equipment or inventory on demand

The Differences Between A Factor And A Business Loan

Factoring is not a loan. You don’t have to “qualify.” There isn’t any credit application and the factor won’t even look at your credit. The invoice discounter only cares about the financial health of the customer paying the invoice. 

There is no debt, and the process is usually quicker at just 24 to 48 hours than a bank loan.

How Factoring Works

It’s quite simple: You produce two invoices; one invoice is sent to send the customer and the other is sent to a factor. The factor will pay you the pre-arranged advance amount on your invoice.

The customer pays your invoice and the balance of the payment is paid directly to you, minus a pre-arranged fee.

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 Difference Between Invoice Factoring And A Bank Loan

One question I’m asked a lot is the difference between a bank loan and invoice factoring.

The two are very different.

Both provide cash to businesses, but a loan is thought of as traditional financing; invoice factoring isnt a loan and doesn’t require any debt at all.

Invoice factoring is another tool for businesses to use.

You don’t have to wait 30, 60 or 90 days for clients to pay an invoice. With invoice factoring, you get cash in as little as a few days. You don’t have to qualify; generally, there isn’t a concern about your credit, but rather the financial health of the customer paying the invoice.

That’s what makes this so ideal for small businesses. There is no debt, and the process is usually quicker at just 24 to 48 hours than a bank loan.

How Factoring Works

You produce two invoices; one invoice is sent to send the customer and the other is sent to a factor. The factor will pay you the pre-arranged advance amount on your invoice.

The customer pays your invoice and the balance of the payment is paid directly to you, minus a pre-arranged fee.

Is Factoring Right For Me?

To find out if it’s for you, answer these questions:

Would more working capital offset operating expenses?
Do you need cash to grow your business?
Has your business exhausted traditional financing?
Would better cash flow strengthen your balance sheet?

If you answered yes to any of these questions, factoring may be a viable solution to fund your business with no debt, no loans and no banks.

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.

Equipment Leasing Provides Options For Small Businesses

Growing businesses often need equipment, and equipment leasing provides options for companies with tight cash flow.

Often, companies with little revenue  find themselves forced to take hefty credit charges when purchaing items. Equipment leasing is a viable alternative for businesses that need equipment that allows you to lease equipment instead of buying it.

Leasing equipment is often cheaper than buying it and offers many advantages.

  • Leasing is simple and convenient. It allows you to have the equipment you need  when you need it.
  • Economically, leasing is value-oriented. You’ll invest less capital upfront when leasing equipment compared to buying products outright.
  • Leasing allows you to have updated equipment — without the finance charges. Instead of paying for outdated equipment that loses value, you get newer equipment.

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

Technology equipment is ideal, because it quickly loses value when manufacturers update technology. Instead of paying for old equipment, you’ll have modern, updated equipment that can help grow your business.

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.

Invoice Factoring In Atlanta Provides Relief To Cash-Strapped Businesses

Waiting 30, 60 and 90 days for customers to pay invoices is a  difficult challenges small and mid-size businesses face. It can be particularly hard to manage your business when you’re waiting for clients to pay.

Invoice factoring is a solution for companies that don’t have a large cash cushion in the bank. This problem isn’t felt with many large companies, who are able to generate interest from their income.

But, small businesses often can’t afford to float their income. Even growing businesses often find themselves in a cash bind when they need money to expand and get new contracts.

Large retailers have used invoice factoring for years. Now, many small and mid-sized businesses have discovered that it’s a viable form of capital.

The Benefits Of Invoice Factoring

Invoice factoring alleviates the problem of waiting for the check to arrive in the mail. Instead of waiting weeks and months, account receivable financing makes funds available almost immediately in a matter of just a few days.

For most small businesses, this frees up capital for expansion, payroll, taxes or many other uses. It eliminates the cash crunch that many small businesses feel.

Flexible Financing That You Can Use

As long as your business invoices customers, you qualify. It’s flexible financing that you can use when you wish. There are no requirements to factor an invoice. This type of factoring works the more successful you are. The more business you do, the more invoices you have.

Invoice factoring isn’t about debt. Factoring companies charge a small fee for their services, but it’s nothing like a loan. The process is simple because all you do is invoice the customer, send an invoice to the factoring company and you’re done.

You just wait to cash the check. You get immediate funding for your business with no debt.

Invoice Factoring Provides Financial Relief

When times are tough, many small business turn to invoice factoring as a financial resource. It’s a smart financial vehicle that has been used for thousands of years. In fact, invioce factoring is one of the oldest forms of business financing in the world.

There are many advantages to invoice factoring as opposed to traditional bank loans.

When you factor invoices, it’s not a loan that you have to pay back or that accumulates interest over time. Let’s be clear: Factoring is not a loan, but a cash advance  on your company’s account receivables – before the company pays.

This makes it the perfect financial vehicle for start ups or existing businesses that need a little cash, but don’t want to take out an expensive and time consuming loan. As long as you have invoices, you can factor them.

Plus, there is no long-term commitment or complicated repayment plans with factoring; that’s not the case with bank loans and lines of credit. 

You’re able to factor cash when you need it, such as during the holidays when it may be more difficult to collect account receivables or during an expansion.

Factoring has existed for thousands of years. It is used by major companies, particularly retailers. They use it to stock store shelves and advance funds on seasonal merchandise before it’s sold. Retailers such as Wal-Mart and Kohl’s now offer factoring programs to their suppliers.

Factoring is used by major companies such as Dunkin Donuts and major retailers.