Electronic identity verification is part of the completely online small business factoring program that we created for our customers.

Over the past few years there has been a lot of talk about Micro Lending and Micro Finance.  These are financial tools that allow people and businesses in the developing world to obtain small loans at reasonable interest rates that allow them to purchase assets that can be sold at a profit allowing them to repay the principal and interest.  

In yesterday's discussion we gave a basic introduction to the client and customer issues that affect factoring companies decision to set an advance rate for a client.

In the third part of our series on ineligible invoices we continue our discussion on strategies to keep your invoices eligible.

Today's article will be about how factoring companies determine advance rates for their clients.  I will be using examples of companies in Los Angeles because even though Fast A/R Funding is a nation wide factoring company, we are head quartered in the Los Angeles area of Southern California.  

In part 1 of this series, we discussed the different types of ineligible invoices and why factoring companies make them ineligible.  

I grabbed this picture of the skull and crossed bones because if you are working with a factoring company or asset based lender, and they make a big portion of your invoices ineligible, it could mean the death of your company's working capital.  ALSO, IT JUST LOOKS COOL...doesn't it?!?

Accounting for Factoring - A How to Guide fo Small Business.

Many of the most successful entrepreneurs follow a golden rule of small business operation: Do what you love and success will follow. And while that may be true, for the vast majority of these business owners, what they love to do has very little to do with accounting, spreadsheets, general ledgers, credits, and debits, and factoring loan facilities. However, running a successful company does have quite a bit to do with small business financing, particularly how you handle the accouting for selling your accounts receivable.