There are several ways to finance the growth of your business.  When borrowing from a bank is not an option (due to limited operating history, negative cash flow, or poor credit history) most people only tend to think of selling a piece of their company to outside investors (friends and family or venture capitalists).  Selling a piece of a company (selling equity) brings a whole host of often complex issues that some entrepreneurs don't focus on at the time, because they are purely looking for the cash needed to survive and grow.  These adverse issues can include having new Board members, a responsibility to new shareholders (fiduciary responsibility), and new individuals to consult on various operational or decision-making processes. 

Throughout America, businesses have responded to the economic downturn by attempting to cut costs, attract new customers, and streamline their business practices. One of the best ways to do all three is by “going green” through the use of loans and accounts receivable services.

People often ask me how they can get access to cash quickly to sustain or grow their businesses.  They've heard about all kinds of financing including borrowing from banks, getting "Angel" investor funding, and raising venture capital to name a few.  They don't always understand the implications on their future business prospects if they were to secure these various types of funding (e.g. selling equity really means selling a piece of your business to new people and that means you are now responsible to those new investors...but you didn't want to work for someone, right?!?!).  There are key differences between each of these financing options.  

Did you know Jeff Spicoli's father was not only a television repairman, but an Invoice Factoring specialist?  A relatively unknown fact is that after graduating Ridgemont High, Spicoli spent his evenings working at his father's company called FastTimesFactors and TV Repair.  Surf all day...review customer credit all night, prepare invoices for the next days mailing, and enjoy the good life...oh yeah...

As Spicoli tells his first client in his first day on the job at FastTimesFactors and TV Repair (caught on video, see below), he has access to the ultimate set of tools to fix the engine of any small business...he knows the trick is increasing cash flow and he knows Factoring is the ultimate tool.

One of the things that affects just about every small business is the price of fuel.  

In yesterdays post we discussed the basic definition and calculation of loans and receivables dilution.  Today's post will focus on a more in depth analysis of different types of dilution calculations.

One of the most commonly used terms in factoring and receivable financing is "dilution".  Dilution is the difference between the face amount of an invoice or group of invoices and what the customer or account debtor actually pays.  

Fast A/R Funding, a Los Angeles small business factoring company, has created an online portal that allows its factoring clients to create an account and sell invoices, or sales receivabels, all online using no paper documents.  

Learn the 5 things you need to know about factoring your invoices by clicking the button below!