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.  

Invoice factoring online with Fast A/R Funding

Invoice Discounting For Small Business All Online

Fast A/R Funding is an invoice discounting firm that focuses on using the latest technology to make invoice discounting:

Loans and Receivables with Fast A/R Funding.

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.

From The Telegraph July 11th 2011 online edition.

"'World's smartest man refuses $1m prize for solving mathematics puzzle.  A reclusive Russian genius has refused to accept $1m (£667,000) in prize money for solving the Poincare Conjecture, one of the most difficult puzzles in mathematics."

Ok.  So we are all back to work full time after a long 4th of July weekend.  Some of us had to work over the weekend.  If you didn't, count yourself lucky.  
Over the past few weeks I have seen several people come to our website after searching for the term " invoice factoring consultant".  I am not sure what exactly is prompting the searches.  It could be companies are looking for a consultant to help them find a new factor, or they could be looking for a consultant to help them with an existing relationship.  Either way, I thought I should write an article about factoring consulting working in both capacities as I have run across consultants that were new business brokers, helping people find the best factoring company to fit them and factoring consultants that help with on going relationships.  The most important thing to remember is that factoring consultants can be valuable advisors, but you should be very specific in your engagements with them and ask some very simple questions before you sign the contract.
Invoice Factoring Consultants as new Business Brokers
There are factoring companies and asset based lenders for just about every type of company selling to other businesses on open account.  Companies hire factoring consultants every day to help them find the right factoring company. When beginning the search for a new factor it can be confusing.  Most companies dont have have existing relationships with factors and don't know where to start.  Nobody works for free and factoring consultants will either be paid by you, the client, or by the factoring firm that they bring the relationship to.  No matter who is paying the consultant, the fee will ultimately be paid by you.  If the factoring firm is paying the consultant, then the chances are the cost of the consultant that is born by the factoring firm will be passed along to the client in the form of the factoring charges.  Before you sign a contract with a factoring consultant check the contract for a few simple things and make sure to call their references.

1. Is the contract exclusive? If you find a factor on your own do you still need to pay the consultant?
2. What exactly will the consultant do for you?  Will they help negotiate legal documents and help with the relationship after it closes?
3. How will the consultant be paid? Will the be paid in full at closing or can you make monthly payments over a period of time based on the length of the contract you sign with the factor.

This post if getting a little long so I will cover the issues of a invoice factoring consultant working on an ongoing relationship with a factor in tomorrows post.