Blog: Reflections of an Entrepreneur

When a business is strapped for cash they often turn to factoring accounts receivable as a financing solution. Of course a factoring company expects to earn a profit on the cash advance and charges a fee for their service. Since the overall goal is improved cash flow, a company considering accounts receivable financing will carefully weigh the benefits against the costs. Here are five ways a business can reduce or offset the cost of factoring and still improve cash flow: Strategy #1 – Early Payment Discounts Use the money to take advantage of early payment discounts offered by suppliers and…

Every day business owners juggle the cash flow demands of their companies. More than ever, they are turning to invoice factoring as a trusted solution, even when banks decline loans and credit lines. If you are considering accounts receivable funding, it pays to be prepared. Save time and money by understanding these five tips before making application to factor your accounts receivable: 1. The Factoring Application The first step in the process is helping the factoring company get to know your company. This might start with a phone conversation but will eventually be formalized in a factoring application. This provides…

If you plan on selling invoices it is important to know whether the funding proposal is for “recourse” or “non-recourse” factoring. Here is an overview of both methods. A Look at Non-Recourse Factoring Just like it sounds, there is no recourse for unpaid receivables against the client. The client selling invoices is not financially obligated to the factoring company in the event an approved and funded invoice is not paid by the customer. To protect their investment, the factoring company will check the credit strength of account debtors and verify invoices with customers. They will also want to handle the…

Grace Capital Resources is a factoring company for small to medium size service-oriented businesses with a specialty focus on staffing companies of all kinds. As an entrepreneur, I’m very excited about this business launch. I have more than 25 years of experience in the financial world in senior positions, built and sold my own commercial construction business and managed a hedge fund. I know what it feels like when opportunity is within sight but just out of reach due to a lack of working capital. There was a need for a capital source to work alongside banks who have become…