Invoice Finance - How it Works!

Posted by matthew begley on Tue, Jun 21, 2011

How does invoice finance work?
As a small business owner you may have heard the following terms when it comes to invoice financing:
  • factoring
  • Invoice discounting
  • Invoice funding
  • Invoice purchasing
  • Invoice Funding 
For all intents and purposes they are the same thing.
The basics of a invoice finance transaction involves three parties.
  1. A business that sells goods or services to another company on open account like 30 day terms.
  2. The company that buys the goods or services from #1.
  3. An Invoice finance, or factoring company.
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Tags: Invoice Factoring

Factoring Agreement - Summary of Salient Issues

Posted by matthew begley on Mon, Jun 20, 2011

A factoring agreement is a legal document typically between two entities.

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Tags: Invoice Factoring

How Accounts Receivable Funding Works Part 5!

Posted by matthew begley on Mon, Jun 20, 2011

The fifth part of our series on the process of how accounts receivable funding work we will focus on how Fast A/R Funding's clients get advances through our electronic factoring platform.

As part of our efforts to make the process as efficient as possible for our customers we ask them to attach their business wire instructions to their online account with Fast A/R Funding.

At the end of the application process for new customers, we ask our customers to enter their banking instructions on their online client dashboard. Once this is done, we are able to process accounts receivable funding and make continued wires to our clients with minimal effort. There is no waiting for advances once a week and there is no waiting and hoping that a check arrives in the mail.

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Tags: Invoice Factoring, Accounts Receivable Factoring

Factoring Accounting - An Introduction

Posted by matthew begley on Wed, Jun 15, 2011

Many Successful entreneurs follow the golden rule of small Business: Do what you love and success will follow. And while it may be true that the vast majority of these entrepreneurs don't love spreadsheets, general ledgers, credits and debits, and factoring accounting facilities, running a business successfully has a lot to do with the financing of the small enterprises, and in particular, how to properly account for business transactions.

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Tags: Invoice Factoring

Factoring Financial Services - Part 3!

Posted by matthew begley on Tue, Jun 07, 2011

The third part of our discussion about electronic factoring financial services with fast A / R funding will focus on creating a new customer on our system.

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Tags: Invoice Factoring

What is Micro Factoring? receivable accounts factoring

Posted by matthew begley on Wed, May 18, 2011

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.  

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Tags: Invoice Factoring

Ineligible Accounts - Factoring of Accounts Receivable, Part 3

Posted by matthew begley on Mon, May 16, 2011

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

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Tags: Invoice Factoring

Factoring, Receivable Financing Dilution Meaning! Part 1

Posted by Jonah Schnel on Sun, Apr 24, 2011

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.  

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Tags: Invoice Factoring

Is AR Finance Right for Your Small Business?

Posted by Jonah Schnel on Mon, Apr 18, 2011

If you weren’t constantly monitoring your accounts receivable, what could you accomplish? If you didn’t have to wait 30, 60, or even 90 days for customers to pay you, but could have your funds right away, how much more could your business grow? If you weren’t always wondering when a customer was going to pay you, but could know in advance what your monthly cash flow would be, how much simpler would it be to plan, budget, and grow?

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Tags: Invoice Factoring, Accounts Receivable Factoring