How To Choose A Factoring Company in Atlanta
A factoring company is the right resource for companies that need to turn invoices into quick cash. But, choosing the wrong company can lead to sleepless nights. Your factoring company is an extension of your company.
After all, they will collect your discounted invoices from your clients. So you want to be careful about the type of company you choose, just as you would be cautious about the type of financial institution you do business with.
Invoice factoring, an advance on discounted invoices, is a financial transaction. So do your homework to choose the best company for your business.
Let’s start with a few of the basics.
*Make sure your business is the right fit for financing. Although factoring is a financial lifeline for thousands of businesses around the world, factoring may not be right for your business.
Generally, factoring is ideal with businesses with at least $5,000 in monthly invoices. Some companies want a minimum of $10,000 in invoices. You need this amount to make sense for you and the factoring company.
*Now, consider the companies that owe you money. The more established they are, the better. Your credit won’t come under scrutiny, but the company will look at the financial health of the company who pays the invoice.
The more established and the longer they’ve been doing business with you, the better. Invoice factoring companies like to see a track record of your client paying their invoices.
If it’s a large client with a good credit rating, all the better. The factoring company trusts your client to pay them back, so the more financially stable they are, the more likely you are to get factoring.
*Compare rates. Find four to six factoring companies and compare their rates. You’ll want to also make sure that the company you hire is professional and experienced. Your invoice factor shouldn’t act like a disgruntled bill collector and harass your clients.
Rather, they should act as an extension of your firm — firm but polite. Try to see how your factor does business. Review their collection letters, sit in on phone calls and investigate how they conduct their business.
You don’t want to lose a client just because the account receivables financing company you hire is unprofessional. Find out how they deal with overdue accounts and when they get a collection agency.
*Find the right match. Some companies deal with small amounts while others routinely do six figures a month. Ask potential companies what their volume is and select accordingly. If you’re a company that only deals with a small amount, you may want to consider factors that are used to dealing with smaller transactions.
*Get a specialist. Not every company is right for every client. If you need specialized factoring, such as medical factoring, health care or construction equipment, consider hiring a company that specializes in these areas. These types of companies are likely to service your needs better than a company that only deals with one type of client.
*Consider technology. Companies often use online invoicing systems that allow you to submit information online, review payment history and get cash quicker.
Follow these tips for a positive experience.
Michael Moss owns MDS Funding LLC, an invoice factoring company that provides invoice factoring in Atlanta that helps businesses improve their cash flow.
For more information about how invoice factoring can provide your business with quick cash in as little as 24-48 hours with NO debt, NO banks and NO loans, visit http://www.MDSFunding.com.
Get Cash When You Need It With Invoice Factoring In Atlanta
Bank lending is almost impossible for most small and mid-size businesses to obtain, but there is an alternative — invoice factoring.
Invoice factoring is one of the oldest forms of financing in the world, dating back thousands of years. Today, it remains a viable and popular alternative for businesses that need cash when there is so little of it available for small and mid-sized businesses.
Consider these figures: The Federal Reserve lent $6.7 trillion as of Dec. 23,2009, down $100 billion from November, according to a recent article in The New York Times. The amount of money that banks loan has fallen by more than $500 billion in the past year.
What Is Invoice Factoring?
Invoice factoring — or the process of selling your account receivables at a discount rate — is more popular than ever. In fact, invoice factoring is alive and well. It’s especially popular now as banks are taking fewer credit risks, shutting many small and mid-sized businesses out.
Just how popular is it? A Commercial Finance Association Survey found that asset-based loans totaled $600 billion in 2008, a figure that has grown since the 1970s. Many businesses thtatwere denied credit have found that invoice factoring is a viable form of financing.
Account receivables financing is proving to be a much economic friendlier alternative to many business. With no banks, no loans and no credit requirements, business with outstanding invoices have found that it is a way to get cash fast in as little as 24 to 48 hours.
Invoice Factoring Is Easy
There are no bank approvals or complicated repayment plans to worry about. It’s relatively simple: Instead of invoicing your client, you invoice the factoring company at a discounted rate.
The factoring company cuts you a check. It’s that simple. You don’t have to play bill collector for your client. Your client reimburses the factoring company; your business gets the necessary cash you need, without having to wait that the check is in the mail.
It’s one of the fastest ways to get immediate cash, and your credit is never in question. That’s why it’s the perfect choice for just about any business, from start ups to existing businesses.
Your businesses’ credit is never question; the discounted invoice is based upon the financial health of your client. That alone gives factoring a distinct advantage over most forms of financing.
You can use factoring as much or as little as you want: All you have to do is have invoices and you can begin getting cash today.
Michael Moss is president and CEO of MDS Funding LLC in Atlanta, which provides invoice factoring in Atlanta that helps businesses improve cash flow.
MDS Factoring is a leading factor of invoices from clients in many industries. For more information about how invoice factoring can provide quick cash in as little as 24-48 hours with NO debt, NO banks and NO loans, visit http://www.MDSFunding.com.
Factoring In Atlanta Offers Businesses Resources During Tough Times
When times are tough, factoring companies are a resource many small businesses rely on.
When you factor invoices, it’s not a loan that you have to pay back or that accumulates interest over time. That’s the brilliance of factoring. It’s not a loan, but an advances on your company’s account receivables.
This makes it the perfect vehicle for start ups or existing businesses that need a little cash, but don’t want to take out an expensive and time consuming loan. When you factor, there is no long-term commitment or complicated repayment plans.
You factor when you want, with the invoices you want. Businesses factor cash when they need it, such as during the holidays when it may be more difficult to collect account receivables.
Why Factoring Has Existed For Thousands Of Years
Factoring has existed for thousands of years. It is used by major companies, particularly retailers. They use it to stock store shelves and advance funds on seasonal merchandise before it’s sold. Retailers such as Wal-Mart and Kohl’s now offer factoring programs to their suppliers.
Factoring is used by major companies such as Dunkin Donuts and major retailers.
Here’s how the factoring process works:
A company is waiting on a large customer to pay its invoice. It has waited 30, 60 or 90 days and needs the money to fund payroll and other expenses.
Invoice discounting offers a solution to companies who need cash fast. Companies no longer have to tap their lines of credit or apply for a bank loan. A company sells their invoices for much needed cash at a discount. Everyone is happy: The company doesn’t have to chase their client for the cash and the company gets quick cash.
The factoring company purchases the rights of the unpaid invoices, usually at a discount. The invoice factoring company provides the company with cash, often in a matter of a couple of days.
There is a small factoring fee, but amounts depend on the industry, monthly volume, the credit of customers and how fast invoices turn.
The Advantages Of Factoring
It’s easy to see why factoring has existed for thousands of years. As a customer, you no longer have to “collect” your account receivables. That’s left up to the factoring company, who are the legal owner of the invoice. Your client doesn’t cut a check to you, but rather the invoice factoring company. You take a hands-off approach and can now focus on the work you do for your clients, not the debt they owe.
Companies who use invoice factoring don’t have to fill out any loan applications. And there is no credit check. It’s not your credit the invoice factoring company is considering, it’s the credit rating of your account receivables.
Overall, clients with good credit ratings and payment histories are preferred, since the factoring company extends the advance with the understanding that they will be paid back by your client.
Michael Moss is president and CEO of MDS Funding LLC, which provides invoice factoring in Atlanta that helps businesses improve their cash flow. It is an invoice factoring company in Atlanta that helps businesses improve cash flow.
For more information about how invoice factoring can provide your business with quick cash in as little as 24-48 hours with NO debt, NO banks, visit http://www.MDSFunding.com.
Five Reasons Why You Need A Factoring Company
With access to credit all but shut for most small and medium businesses, companies are increasingly turning to invoice factoring to provide operating cash and money for expansion.
Invoice factoring used to be thought of as alternative financing, but no more. Many companies use it, including large companies like Dunkin’ Donuts, to provide cash.
Factoring is one of the oldest forms of financing. It has existed for thousands of years, but most people today don’t have a clear idea of what it is.
Factoring is a form of commercial financing that uses a company’s oustanding, discounted invoices as collateral. In simple terms, the company borrows against its invoices. So, instead of getting paid in 30, 60 or 90 days, the company gets cash in just a few days.
There are no banks, loan applications or credit checks involved. The invoice is borrowed against your creditor, not your company.
Companies no longer have to wait net 30 days to get paid. And it’s a simple process: The factoring company buys the invoice, the company is paid immediately, and the client (creditor) must pay the factoring company back.
There are many advantages to a factoring company:
1.Speed: How fast do you want your money? Unlike in a traditional bank loan, factoring can give you quick access to your cash in as little as 24 to 48 hours. It’s ideal for companies who have lucrative contracts, but can’t afford to wait to pay their employees when the client reimburses them in 30 days.
2.Financial: Your credit is not under scrutiny; it’s the credit of the company that’s paying your invoice that the funding decision will be based upon. Your company may be a start-up or financially challenged; it doesn’t matter.
3.Credit: As long as the client who invoices you is credit worthy, you can have a healthy factoring relationship. Factor as many invoices as you wish.
4.No loan repayments: Factor as much and as often as you wish — without worrying about interest rates or payment periods. When the client pays the loan, your factoring amount is paid off.
5. Minimal set up: Factoring isn’t difficult. There’s veryu little paperwork involved, with no lengthy credit approval process. Factoring is not a loan, and you don’t have to wait weeks and weeks to get a decision from a loan committee.
Invoice factoring is a legitimate, time-tested process that companies around the world use to get access to cash. If you’re in business and need cash, it’s an option you should consider, especially if you are waiting 30, 60 and 90 days for an invoice and need to use the cash as operating capital.
Michael Moss is president and CEO of MDS Funding LLC, which provides invoice factoring in Atlanta that helps businesses improve their cash flow. provides invoice factoring in Atlanta that helps businesses improve their cash flow.
For more information about how invoice factoring can provide your business with quick cash in as little as 24-48 hours with NO debt, NO banks and NO loans, visit http://www.MDSFundin
Invoice Factoring Company In Atlanta Offers Financial Relief To Small Businesses
An invoice factoring company is a resource many small businesses use during times when financial resources are tight.
An invoice factoring company doesn’t act as a loan that you have to repay or that grows interest. There is no long-term commitment or complicated repayment plans. Rather, it uses a company’s invoices to advance cash.
Businesses factor cash when they need it.
Factoring is one of the oldest forms of funding. It has existed for more than 3,000 years. Major companies, especially retailers, use it to advance funds on seasonal merchandise.
Here’s how it works:
A company is waiting on a large customer to pay its invoice. Problem is, it has waited 30, 60 or 90 days. Meanwhile, the business struggles to pay payroll because it has not collected money from its clients. Or, it is unable to fund a critical expansion because it is short of everyday cash flow.
Invoice discounting offers a solution. Instead of getting a bank loan or accessing a line of credit, the company turns to an invoice factoring company. It sells their invoices to a factoring company at a discount in exchange for immediate cash.
The factoring company purchases the rights of the unpaid invoices, usually at a discount. The invoice factoring company provides the company with cash, often in a matter of a couple of days.
The company charges a small fee for factoring, but it is based on the industry, monthly volume, the credit of customers and how fast invoices turn.
There are many advantages. As a customer, you no longer have to “collect.” Your client pays the invoice factoring company back and handles correspondence about the debt. There is no credit check involved.
Typically, they factoring company bases the invoice factoring on the credit worthiness of customers — not the individual business. They prefer invoices of clients with good credit ratings and payment histories.
Selling invoices offers critcal cash at the right time. It gives businesses the cash they need, in advance, so companies don’t have to deal with slow or late pays. And it allows businesses to concentrate on expansion instead of cash flow probems.
Your company might be a candidate for invoice factoring if you answer yes to these questions.
Are you lacking capital?
Do you have seasonal products and services?
Are you worried about funding your business or the stability of your clients?
Are you spending too much time chasing clients down for your invoices?
Invoice factoring may be an option for your company.
Michael Moss is president and CEO of MDS Funding LLC, an invoice factoring company in Atlanta that helps businesses improve their cash flow. It provides invoice factoring in Atlanta to help businesses improve their cash flow.
For more information about how invoice factoring can provide your business with quick cash in as little as 24-48 hours with NO debt, NO banks and NO loans, visit http://www.MDSFundi