All Financing Articles - Page 3

100+ Paycheck Protection Loan Providers

By Dennis Shirshikov on May 20, 2020 | Buyer's Guide, Financing | Comments (0)

We are monitoring the application availability of more than 100 lenders to ensure small business owners know which local banks, national lenders, credit unions, and brokers are actively lending. This guide will be updated every morning to provide the information regarding the Paycheck Protection Loan is accurate and timely. The above providers are available nationwide…

Current SBA Loan Rates May 2020

By Tricia Tetreault on May 13, 2020 | Business Loans, Financing, What is | Comments (100)

The affordability of Small Business Administration (SBA) loan rates attracts many businesses that may not otherwise be able to obtain affordable financing. Whether you are considering an SBA 7(a) loan, Express loan, microloan, or Community Development Company (CDC)/504 loan, the SBA loan rates you receive will likely be more affordable than most other financing options….

Factoring Discount Rate: What Is It & How It Works

By Dennis Shirshikov on May 12, 2020 | Financing, What is | Comments (0)

The discount rate in a factoring transaction is the fee a factoring company charges to provide the factoring service. It is a percentage of the value of the invoice that a factoring company will charge to process its receivables. A standard discount rate is 1.5% to 2.5% of the invoice value per 30 days. How…

Manufacturing Factoring: When to Use It and Top Providers

By Dennis Shirshikov on May 8, 2020 | Buyer's Guide, Financing | Comments (0)

Manufacturing companies rely on invoice factoring to ensure positive cash flow during periods of growth or spikes in demand. A manufacturing company can receive an order, invoice the customer, factor the invoice, receive the cash, pay for wages and materials to produce the order, and receive the difference when the invoice is collected. The best…

4 Best Companies for Medical Factoring

By Dennis Shirshikov on April 30, 2020 | Financing, What is | Comments (0)

Businesses in the medical industry are the most sought-after invoice factoring customers. This is largely due to the reliability of their debtors and the experience that factoring companies have in servicing this industry. Therefore, medical businesses seeking invoice factoring can be selective and shop around for the best rates and terms for their invoices. Top…

5 Best Invoice Factoring Companies 2020

By Dennis Shirshikov on April 30, 2020 | Buyer's Guide, Financing | Comments (18)

We ranked the top invoice factoring companies based on accessibility, costs, terms, and requirements. Our analysis included more than 30 individual variables across over 50 factoring companies. With invoice factoring, a business can convert unpaid invoices into immediate cash through an advance of 80% to 90% of the total amount owed. We reviewed more than…

3 Best Factoring Companies for Trucking

By Dennis Shirshikov on April 30, 2020 | Buyer's Guide, Financing | Comments (0)

When looking for a freight factoring company for your business, you need to know the volume of the invoices that you plan on factoring and what your goal is. If your goal is to outsource your accounts receivable process, you’ll want a different type of factoring company than someone looking to get quick financing. Top…

What Is a Factoring Fee?

By Dennis Shirshikov on April 30, 2020 | Financing, What is | Comments (0)

Factoring companies make money by charging a factoring fee, which they either calculate based on the number of days a factored invoice is outstanding or as a flat rate per invoice. In some cases, invoice factoring includes additional fees designed to encourage borrowers to factor a certain number of invoices or to maintain an open…

Notice of Assignment: What It Is & How It Works

By Dennis Shirshikov on April 30, 2020 | Financing, What is | Comments (0)

Small business owners who use invoice factoring will be required to authorize a notice of assignment the first time a lender factors an invoice. This notice is intended for the business’s customer and informs them the invoice is now payable to the factoring company instead of the business. How a Notice of Assignment Letter Works…

Factoring Advance Rates: What They Are & How They Work

By Dennis Shirshikov on April 30, 2020 | Financing, What is | Comments (0)

Factoring companies provide capital as a relative portion of the invoice value. The portion they advance right away is called the advance rate and usually ranges from 75% to 95% of the invoice value. Advance rates typically vary based on the industry, due date, volume, and debtor’s credit in a factoring transaction. Small business owners…

Factoring Agreement: Definition & Common Terms

By Dennis Shirshikov on April 30, 2020 | Financing, What is | Comments (0)

Small business owners who apply with an invoice factoring company will receive a factoring agreement outlining their rates and terms. This agreement should outline the agreed-upon rates, terms, and conditions to be followed throughout the factoring relationship. Factoring agreements usually last from between one and three years, at which point they can be renegotiated with…

Trucking & Freight Factoring: What It Is & How It Works

By Dennis Shirshikov on April 29, 2020 | Financing, Ultimate Guide | Comments (2)

Freight factoring―also referred to as trucking factoring―is a form of invoice factoring that allows transport companies, including owner-operators, to turn unpaid invoices into immediate cash. Freight factoring is a good option for owner-operator trucking companies that want to get paid immediately for work they have already done to be able to take on additional work….