Free-Reprint Article Written by: Toby Seibert See Terms of Reprint Below.
***************************************************************** * * This email is being delivered directly to members of the group: * * [email protected] * ***************************************************************** We have moved our TERMS OF REPRINT to the end of the article. Be certain to read our TERMS OF REPRINT and honor our TERMS OF REPRINT when you use this article. Thank you. This article has been distributed by: http://Article-Distribution.com Helpful Link: The Digital Millennium Copyright Act - Overview http://www.gseis.ucla.edu/iclp/dmca1.htm --------------------------------------------------------------------- Article Title: ============== Why Businesses Need Receivable Factoring In Cash Flow Management Article Description: ==================== In today's business environment, many businesses need to fine-tune the process of getting paid on invoices, in order to improve their cash on hand. Improving cash flow can be an ongoing challenge for businesses of all sizes, and it is an issue that must be addressed to ensure the long-term viability of the business. Additional Article Information: =============================== 866 Words; formatted to 65 Characters per Line Distribution Date and Time: 2007-08-08 10:12:00 Written By: Toby Seibert Copyright: 2007 Contact Email: mailto:[EMAIL PROTECTED] For more free-reprint articles by Toby Seibert, please visit: http://www.thePhantomWriters.com/recent/author/toby-seibert.html ============================================= Special Notice For Publishers and Webmasters: ============================================= If you use this article on your website or in your ezine, We Want To Know About It. Use the following URL to let us know where you have used this article, and we will include a link to your website on thePhantomWriters.com: http://thephantomwriters.com/notify.php?id=5148&p=load HTML Copy-and-Paste and TEXT Copy-and-Paste Versions Of Article Are Available at: http://thePhantomWriters.com/free_content/db/s/receivable-factoring.shtml#get_code --------------------------------------------------------------------- Why Businesses Need Receivable Factoring In Cash Flow Management Copyright (c) 2007 Toby Seibert 1st Commercial Credit http://www.1stcommercialcredit.com In today's business environment, many businesses need to fine-tune the process of getting paid on invoices, in order to improve their cash on hand. Improving cash flow can be an ongoing challenge for businesses of all sizes, and it is an issue that must be addressed to ensure the long-term viability of the business. Once company managers realize that their receivables have become a problem, they will frequently seek an effective strategy for dealing with the problem. When faced with cash flow problems, many managers will decide to seek out financing to help the business survive a rough patch. But, for the company in a cash crunch, banks are often the wrong place to turn for help. For the business manager in the know, receivable-financing companies may be best able to help the business improve its cash flow, by offering effective management of outstanding invoices. Receivable factoring is a financial service that can efficiently help companies get their cash flow under control. When a business needs to collect money on past-due accounts, the standard process involves tracking down the customer and making attempts to receive payment. Even if the business is well established, this process can be tedious and difficult to manage. In many cases, a customer will have let the debt carry too far, and then a credit-reporting agency will need to be contacted or a third-party collection agency must be employed in order to track down and collect payment from the customer. In other instances, a business simply designates a department to handle all outstanding receivables that inevitably lead to a bad debts expense. The bad debts expense is only generated if a debt continues to go uncollected. Accounts receivable loans can benefit a company in part, because it can provide a consistent system that enables steady access to cash for the seller. Finding an effective way to create a faster cash-turnaround will help the business improve its own payables. Consistent billing and reliable accounts receivable can help strengthen the relationship between the business and the customer. This also increases the efficiency of billing for all parties involved, because payments can be made quickly before debt is accumulated. If a business has accumulated a large amount of unpaid invoices, they can make use of the value of these transactions in order to obtain immediate funding although most receivable financing companies will not buy any invoice more than 90 days old. Loans against receivables are actually different from a standard loan, since the business is backed by its own accounts. Factoring of accounts receivable is a relatively simple process and is an easy way to improve cash flow for a business. The process is designed to make use of the value of the outstanding bills that have yet to be paid by customers. This is done by using the outstanding invoices as collateral. The factoring company can send the seller's business up to 90% of the value of the outstanding invoices in cash. These proceeds can be used to help to meet payroll deadlines, pay any bills, or to provide extra funds for current projects. For many small businesses, these relatively simple payroll deadlines or bills can go unpaid, because of outstanding debts that are owed to them. With the assistance of a service such as accounts receivable factoring, many small business owners can pay their own bills on time and pay the employees that keep the business up and running. Once the customer has paid the debt in full, the factoring agency will deduct their transaction fee, and they will pay the remaining amount to the seller. Many different types of industries frequently use receivables factoring to assist in correcting financial problems. Staffing agencies, service providers, distributors, trucking companies, and manufacturers frequently make use of factoring loans and all qualify for a receivable financing. A factoring company can help to reduce and even eliminate the erratic tendencies of a company's cash flow. When a company does not need to worry about collections or other account receivable follow-ups, they can focus on other departments within their business, such as the important items like sales and marketing. In addition, the receivables factoring company will not evaluate a business in the same format as a regular financial institution, lender, or bank. The standard measure for the factoring service is the value of the business' customers. Receivable factoring rates are subject to other conditions including the industry and the available history of customers. A factoring company can take the necessary steps and required action to obtain payments on every single invoice, and they are able to provide funding to their customers immediately. Businesses typically make use of receivable factoring services for working capital needs, purchases, or paying a supplier. Small businesses, in particular, can find great value in factoring services, since the small business does not have the extensive resources and assets necessary to chase after all of their accounts. In addition, under funded businesses are more at risk for bad debts, since they do not have professional credit analysis available to them. Finding the correct factoring service can take some time, but reviewing past performance and industry examples can help a manager to make an effective decision. --------------------------------------------------------------------- Copyright (c) 1st Commercial Credit. Toby Seibert writes about commercial finance. 1st Commercial Credit can help you with your business growing pains, with financing rates as low as 1.59%, with no fees and no minimums. They finance invoices from $5,000 to up to $10 million with flexible approval decisions. Call 1-800-450-9653 or visit their website: http://www.1stcommercialcredit.com --- END ARTICLE --- Get HTML or TEXT Copy-and-Paste Versions Of This Article at: http://thePhantomWriters.com/free_content/db/s/receivable-factoring.shtml#get_code ..................................... TERMS OF REPRINT - Publication Rules (Last Updated: May 11, 2006) Our TERMS OF REPRINT are fully enforcable under the terms of: The Digital Millennium Copyright Act http://thomas.loc.gov/cgi-bin/query/z?c105:H.R.2281.ENR: ..................................... *** Digital Reprint Rights *** * If you publish this article in a website/forum/blog, You Must Set All URL's or Mailto Addresses in the body of the article AND in the Author's Resource Box as Hyperlinks (clickable links). * Links must remain in the form that we published them. 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