How Much do Invoice Factoring Companies Charge? What is the Typical Invoice Factoring Rates & Advance Amounts? Understanding Invoice Factoring Rates & Fees Many business owners attempt to compare bank APR interest rates to invoice or A/R factoring rates. The problem is twofold. One, the best invoice factoring company’s rates are non-recourse and include A/R […]
Frequently Asked Questions
Invoice Factoring Frequently Asked Questions (FAQ): What is A/R factoring, how does it work, and how can you use A/R financing to safely increase your working capital.
Invoice Factoring Myths and Misconceptions
Debunking Common Fallacies about Accounts Receivable Factoring 7 Common Myths about Invoice Factoring Many small business owners have heard of receivable factoring or invoice factoring but are unsure what it is or how it works. Others are convinced it is a bad idea, even though more than $50 billion in invoices are sold yearly through […]
Invoice Factoring for Immigrant-Owned Businesses
Immigrant-Owned Business Invoice Factoring Bankers Factoring Company for Immigrant-Owned Start-Ups Many immigrants move across the world with high hopes of starting a new business and creating opportunities in the USA. But when traditional funding seems impossible to receive, and the odds feel against you, this can be difficult. Business grants for immigrants and loans for […]
Which is Better, Recourse or Non-Recourse Factoring?
Why Choose Non-Recourse Factoring Many businesses looking into factoring encounter the decision of what type of factoring, recourse vs non-recourse factoring, to choose. They are not sure what the difference is and what route to take. So what are the advantages and disadvantages of factoring receivables non-recourse? And is factoring receivables without recourse a good […]
Is a Purchase Order a Legal Contract?
What Makes a Purchase Order a Legal Contract? Is a PO Agreement Legally Binding? Understanding a Purchase Order versus a Contract when ordering Goods or Services. Purchase orders and contracts are legally binding agreements in business transactions. Understanding the differences between the two is crucial. This article provides definitions, differences, and information on purchase order […]
The Perception of Factoring by Entrepreneurs is Changing
Even the SBA Understands the Need for Invoice Factoring Is Factoring Invoices a Good Choice for Entrepreneurs? The 31 million Entrepreneurs in the USA need help to avoid becoming part of the 82% of businesses that fail due to poor financial management. What if we told you there is a fast funding source that requires […]
Is Factoring a Loan?
What is a Factoring Company versus a Bank Loan? Factoring is not a loan but the sale of your invoices to a Factor A common misconception is that invoice factoring is a loan. However, this is not the case, and factoring is very different from bank loans. On a daily basis, businesses face problems with […]
How Do Factoring Companies Buy Accounts Receivable?
Why Sell Your Invoices to a Factoring Company? Safe Working Capital. When companies are stuck with 30-90 selling terms, need the cash flow, and invoice factoring fills these gaps. Factoring companies provides immediate working capital. Factoring companies that buy accounts receivable, such as Bankers Factoring will provide immediate funding. How Does Invoice Factoring Work? The […]
What is a Factoring Company Reserve?
Why Does an Invoice Factoring Company Hold Back or Reserve a Percentage of Your Invoice? What is an Invoice Factoring Reserve? Factoring companies hold back a portion of your sold invoices called the reserve account for contingency purposes. In invoice factoring, a reserve helps reduce risk in chargebacks, credit memos, or vendor returns. The factoring […]