Funding from Invoice Factoring Companies

Invoice factoring companies can provide immediate, short-term funds for companies that are unable to obtain a traditional bank loan. Financing from traditional banks generally requires commercial borrowers to have two years in business and showing a profit. Banks tend to favor loans secured by tangible assets like machinery, inventory, equipment and real estate.

Working with factoring companies, in contrast, are less restrictive. When you sell your invoices – often called factoring – you don’t incur any debt so there are no monthly payments. Plus, you can control your cash flow by determining how much to factor and when. Young, growing companies or those with tax liens – and even bankruptcy – can still qualify for an invoice factoring account. This makes factoring companies a viable source of funding for many businesses.   

How It Works
In simple terms, here’s how invoice factoring works: Factoring companies purchase your accounts receivable or freight bills at a discounted rate and issue you a lump sum payment. Essentially, your company sells its accounts receivable or invoices at a lower value for quick cash, instead of waiting the usual 30 to 45 days for the invoices to be paid.

After you deliver your product/service and generate an approved invoice, factoring companies can provide your money in as little as 24 hrs. In essence, working with a factoring company can help speed up your cash flow. The influx of cash can better enable you to meet your financial obligations. For example, you can use the money to increase your working capital, pay bills or taxes, pay up front for equipment or supplies, and even take advantage of early payment discounts offered to you by your vendors.

Typically, factoring companies pay 80 percent of the invoice value upfront. Then they issue the remaining value-minus a factoring fee-once they’ve receive payment from your client. The factoring fee is determined by a combination of the credit worthiness of your customer base, the average terms, the invoice number and size, and factoring volume.

Factoring companies structure their fees in any number of ways, but the rate you pay generally works out to be about three to five percent of the invoice value. Keep in mind that financing fees will fluctuate according to the creditworthiness and performance of your individual receivables. If there’s an extremely low level of risk involved, fees can be as low as 1 percent of the invoice amount.

History of Factoring Companies
Factoring companies have been around for centuries. In the U.S., factoring companies first emerged in the colonies shortly after the British began colonizing New England. At that time, a factoring company was a business or individual that facilitated trade between sellers of goods in Europe and buyers of goods in the colonies.
Factoring companies would “vouch” for the buyer-essentially ensuring the seller in the “old” country that the buyer in the “new” country was creditworthy. In addition to charging a fee for their credit advice, factoring companies became trade merchants themselves and facilitated the sale by acting as the buyer and reseller of goods.

Currently, in North America, the factoring business maintains close ties to the apparel and textiles industries. In fact, an estimated 60 to 70 percent of the North American markets dollar turnover comes from these industries. But many modern factoring companies also specialize in industries such as furnishings, trucking, IT staffing, temporary staffing, nurse staffing and manufacturing. Regardless of the industry, many of the basic services offered by full-service factoring companies have remained largely unchanged. Factoring companies generally offer credit advice to help their clients minimize bad debt, cash advances against invoices and collection expertise.

How Factoring Companies Operate
Factoring companies range from small financial service businesses to large banks. Each company has its own approach to operating. For example, many factoring companies specialize in specific industries or regions. Some may require a certain minimum per invoice or total invoice amount before they’ll conduct business with you.

Regardless of the industry or value of invoices involved, all factoring companies work as middlemen. And they have two basic requirements for qualifying for their alternative form of financing. First, you should have no existing primary liens on your accounts receivable, which means no other company should have a claim on payments when they come in.

Next, your customers must be creditworthy because factoring companies depend on the ability to successfully collect on your clients’ invoices. That means your company’s credit history won’t necessarily factor into a decision to approve or deny your account. Instead, factoring companies will primarily consider your clients’ payment history and financial stability.

Here’s a step-by-step example of the process of working with a factoring company:

•    You complete an application, submitting essential information about your company and accounts receivables.

•    The factoring company does its due diligence and prepares all the necessary legal paperwork. Typically this process takes five to ten days, and some factors may charge an application fee.

•    Once you begin working with the factoring company, you’ll prepare your customer invoices and forward them to the company for an immediate cash advance.

•    The factoring company will bill the customer and follow up to ensure receipt of payment, handling all the accounting, invoicing and other payment processing responsibilities. (The company likely will verify that you actually completed the work or delivered the products.)

•    If everything checks out, the factoring company will advance anywhere from 70 to 90 percent of the value of the purchased invoices.

•    Your customers will likely send their payments directly to your factoring company. Once the company receives them, it will electronically send you the “unadvanced” portion of the invoices-minus its financing fee.

Important Considerations When Evaluating Factoring Companies
When evaluating factoring companies to work with, there are a number of important areas you should carefully consider. Of course, the pricing structure is a critical factor. You should consider likely customer payment scenarios and calculate what the total fees would be for the different vendors. Also, compare the deposit or application fees, the advance rate, and monthly minimums.   

You also should inquire about how the factor company handles unpaid invoices. Some factoring companies will assume all the risk and not require you to repay them if the invoice isn’t paid within a set period of time. Other factoring companies will require you to repay funds advanced for any unpaid client invoice-plus the factoring charges. And still some factoring companies will allow you to replace the invoices of non-paying clients with invoices from paying customers.

Last, but certainly not least, select a factoring company that provides a high level of customer care. This helps to ensure that your customers will be properly treated. All factoring companies operate differently. That’s why it’s important to do your research and find the best-priced and most knowledgeable factoring company for your particular business.

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Cutting Your Business Debt With Invoice Factoring

There are few bigger challenges for business owners and managers than waiting 30 to 60 days to get paid by their customers.  Although large businesses can usually afford it, smaller businesses can’t afford the wait. As a matter of fact, waiting to get paid on their invoices can create cash flow problems that affect the owners ability to meet payroll or pay the company’s bills. This problem can be more frustrating if the business has a number of orders that it cannot fulfill because its cash is tied up in unpaid invoices.

<b>How can invoice factoring help you?</b>

Invoice factoring, also known as accounts receivable factoring, is a financial tool that allows small business owners to capitalize on the power of their slow paying invoices. It allows you to turn your invoices into immediate cash, enabling you to fund your business operations. Although it is not a well-known fact, invoices from strong credit worthy commercial clients are excellent collateral, especially for factoring companies. Although most banks won’t take invoices – factoring companies are more than willing to provide you with financing based on them. This makes it an ideal financing vehicle for small and mid size businesses, as well as knowledge-based companies and employee intensive firms.

<b>How does invoice factoring work?</b>

As opposed to most banks that lend you money against hard collateral, invoice factoring companies buy your invoices outright. The factoring company buys your invoices and provides you with funds immediately, while they wait to get paid by your customers. Factoring is best described with an example:

1. Let’s say that you sell services to Company A and Company B. As soon as you provide the services, you invoice them.

2. At the same time, you send copies of the invoices to the factoring company, who buys them and provides you with an advance payment for them.

3. The factoring company waits to get paid by your customers. Once paid, any remaining funds are remitted to your company.

The invoice factoring process can be repeated every time you invoice, providing you with a flexible line of financing that grows with your business.

<b>How much will an invoice factor advance my business?</b>

Factoring transactions are commonly done as a two-installment sale. The first installment is called the advance and is paid to you as soon as you submit the invoices. Advances can range anywhere from 60% on the low end up to 90% of the gross value of the invoices. The average advance is about 75%.

The remaining installment, called the rebate, is remitted to you once the invoice is paid. Factoring fees are deducted from the rebate.

<b>The cost of invoice factoring</b>

The cost of a factoring transaction is determined by three criteria. First, the credit worthiness of your customers. Second, the length of time that your invoices take to get paid. Lastly, the monthly factored volume.

Your cost, actually called a discount, can be as low as 1.5% or as high as 12% per transaction depending on how you fit the previous criteria.

<b>How can I determine if invoice factoring will help me?</b>

Generally speaking, invoice factoring will help you if you have a business that has reasonable profit margins or is growing quickly. Mid size companies with 20% or more profit margins or large companies with 15% profit margins can usually do well with accounts receivable factoring.

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Johnny and Service Tax Refund [Series-II] Part-1: ‘Invoice’

Johnny and Service Tax Refund [Series- II]

Part 1: ‘INVOICE’

 

                                                                        Prepared By: -                       

CA. Pradeep Jain

Mayank Palgauta

 

We have already written one complete series of articles for the refund of service tax to exporters under notification no. 41/2007-ST. The litigation on the same is still going on. The Government has come up with the new notification no. 17/2009-ST dated 7th July, 2009 to make the scheme simple so that the refund is available to the exporters conveniently. But there is no sign of relief for the exporters. They are still struggling to get the refund from the department. With this second series of the articles, an effort has been made to bring out the misery of exporters. This also brings out the present situation existing in the refund structure mechanism under Service tax. This state of affair also is elaborated with the means of poems and conversation between Johnny (an assessee) and his father.

 

Johnny and Jill went up the hill, to get the refund order
Johnny came back with a lack
And Jill came hopeless after.

 

Today, in the present scenario also, the poor exporter is still facing enormous difficulty in getting refund orders as stated in the lines above. There is no radical change has taken place even after the change of total scheme by the Government. The refund claims are the Right of the exporters but the department is rejecting these claims on various grounds which are of trivial importance. This resulted in frustration and skepticism among exporters as regards the Refund mechanism. The one of the conditions relating to INVOICE on which the department is rejecting the refund claim on various services mentioned in the Notification No. 17/2009-ST dated 7th July, 2009 (herein after referred to as said notification) are highlighted here by means of poetic conversation: -

 

Johnny-Johnny!  Yes papa!

Got the refund?

No Papa,

Telling lies?

 No Papa,

What’s the reason?

This papa: -

 

Johnny says:  I went to department to get the refund on various invoices issued by service providers under said notification but department said: -

Johnny-Johnny go away,
Come again another day.
Your refund order has following Flay: -

 

In relation to refund claim filed by the exporters, they require the original invoices. It is told to them that the original invoices are required by various departments. Hence the same cannot be given to you. But the department is saying that it is condition of the notification and it cannot be relaxed. We said that we can show the same to you and you compare the same with Xerox copies given by us to you along with refund claim. Then give the same back to us per bearer. But they did not agree. They say that the condition has been imposed so that the double refund claim is not taken by you on the same invoice. We have told that you can put a seal on these original invoices saying that the refund is claimed, not to be used again. But they did not agree and told that it is condition precedent for claiming the refund that the original invoices should be submitted with us. We were helpless and submitted the original invoices. We were hopeful of getting the refund thereafter. But we were not aware of the fact that we are dealing with revenue department who can collect the crores of rupees but cannot give small refund claim. The second objection was raised by them

Johnny-Johnny!  Yes papa!

Got the refund?

No Papa,

Telling lies?

 No Papa,

What’s the reason?

This papa: -

 

Johnny says:  I went to department to get the refund on various invoices issued by service providers under said notification but department said: -

Johnny-Johnny go away,
Come again another day.
Your refund order has following Flay: -

 

All the original Invoices issued by a service providers like Custom House Agent for CHA services or by a Cleaning and Forwarding Agent for cleaning and forwarding services should have certificate as mentioned the notification 17/2009. In this endorsement the assessee has to certify that the services mentioned in the invoices have issued to the assessee; the service tax has been paid thereon by the assessee and said services have been utilized in export of goods under the particular shipping bill no. and its date. We have told them that we have made a rubber stamp of this certificate and put it on Xerox copy of the invoice. But they said that the same should be put on the original invoice. We have told that the original invoice is required by many department and auditors. Hence, we will use them for various purposes after the same is returned to us. But they did not agree and told that the same should be put on the original invoice. We have no option but to agree their demand. After the seal was put on original invoice, we asked for the refund. But the department came with the next arrow. He has told that you have written in rubber stamp the category of service, shipping bill number and date is as per table annexed to refund claim. But the shipping bill number, category of service should be mentioned on the invoice only. We have learnt from past experience that we have no option before the department but to abide by the things as told to us. Hence, we followed their instructions and corrected all the invoices in the hope of service tax refund claim. The assessee submits that the reference of all the Shipping Bills and its date has already given in tabular form with refund claim application. Thus the demand of mentioning the reference of the same in each and every invoice of the service providers has ridiculous point.

  

Johnny says:  I went to the department next day again with the corrections but department rejected saying: -

Johnny-Johnny go away,

You won’t get refund anyway.
It has following more flay: -

The invoices of various service providers have not prepared under Rule 4A of Service Tax Rules, 1994 as many of invoices are not serially numbered; some invoices do not have the Service tax Registration no. of service providers and some of them are not having the description of service provided during the course of Export of goods. Even the same is not mentioned in the table annexed to the refund claim. Furthermore, the same is not mentioned in certificate endorsed on the face of invoice. We pleaded that when the service provider has not mentioned the above details in his invoices then how we can know the above information like under which category the service provider is providing the services. Further, we argued that since these mistakes have not done on our part, the refund should not be denied on these ridiculous grounds which are beyond the control of the assessee.

 

Unrewarding again & again;

Johnny now in grief and pain!

‘Refund Order’ now a dream;

His efforts have downstream!

 

Johnny’s contention:-

To fulfillment of the condition of submitting ORIGINAL INVOICES to the department, we have produced all the ORIGINAL invoices of all the service providers at the time of refund but these have not come back to the our custody as the department contending that they will keep them for the purpose of refund claim. They contend that even after the refund is sanctioned or rejected then the file will go for audit and the department has to send the original invoices to audit wing or review wing. Thereafter, if the appeal is filed then they will keep the invoices with them.  

 

Seeing these erroneous interruptions, obstacles and arguments taken by the department, the exporter-assessee wants to say one sentence to the Government that “HATHI KE DANTH KHAANE KE AUR, DIKHAANE KE AUR” because on one point the Board is issuing the exemption notifications for promoting the Export of goods outside India and on the other side Revenue department is not happy to sanction the refund claim.

 

At the end all the exporters, whose refund claim is under evolution from extensive time period, raise one question that why the Finance Minister is not exempting the exporters from payment of service tax itself in order to remove these types of silly troubles which became a big barrier thereafter. They require straight forward exemption rather than exemption by way of refund.

 

By this humorous and poetic article above we conclude that the physical condition and mental state of assesses claiming refunds against export of goods is similar to that of Johnny in the poem. Every time the assessee is approaching the department his refund claims are being rejected on some or the other flaws. He has to return fruitless, hopeless with his futile efforts thinking whether he will be getting the refund or not. 

 

There are a number of services on which the refund is allowed. The assessee is facing difficulty in almost all of those services due to attached conditions with each service. Due to the large number of conditions we were not able to cover all the conditions in this article and hence we will be bringing further articles on the different conditions covered therein.

 

Keep visiting for the next article……..

 

*******

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Printing companies involved in false invoices

HC recently reported a series of straight-line printing “false invoices” printed case attracted the attention of the author. In recent years, “false invoices” is growing more heated, despite repeated prohibitions, it is learned only in 2009 in Anhui Province on the investigation of “false invoices” published cases since 1064. After 2010, all “false invoices” published cases still emerge, through the careful study of these cases Aberdeen, we nevertheless found that many printing companies are involved in this chain of black … …

The pain of the printing industry Cangnan Printing King-developed “false invoices” hotbed 2010 4 13, the Ministry of Public Security’s national in-depth special operation to combat crime scene remediation invoice at the Zhejiang Public Security Bureau Deputy Director Xu Dingan the stage for the exchange of experience, the first 26 about Wenzhou Its area Cangnan, etc., called “Wenzhou Cangnan orders totaling invoices and other places were gradually.” It is reported that Wenzhou Cangnan area in particular has been the key areas of manufacturing false invoices, false invoices for the manufacture of our country one of the sources. Cangnan create false invoices can be traced back the history of the last century or even early 90s. Cangnan whether ordinary people or the Government, for the manufacture of fake invoices abhorrence. But 20 years after combat, where crimes are still Eliminated false invoices.

Wenzhou Municipal Public Security Bureau of Economic Crime Investigation detachment of the Jinling Sen that Cangnan developed printing industry is the hardest hit of producing false invoices for one of the main. It is understood that Cangnan currently has about 1,000 printing companies varying in size, one hundred thousand practitioners army, known as the “China Printing City.” “Cangnan a perfect chain of the printing industry, has manufacturing facilities false invoices.” Jinling Sen said that in addition to printing a large number of legitimate, the Cangnan number of hiding the existence of underground workshops in rural areas, to accept orders from all over fraud . Why dignified “China Printing City” will be reduced to “false invoices” printed base? Why is the printing industry developed Cangnan area will become a “false invoices” breeding ground for printing?

The spate of “false invoices” event for counterfeiting and forgery has become a pain in the printing industry. “False invoices” published Huge market demand but false driver To answer these questions, we must first come to a thorough understanding of the next “invoice” Past and Present. Invoice is an original recording operations that is also an important tool for maintaining social order. Invoice has to prove the role of another under certain conditions, the nature of the contract. Proved over the years, various invoices offense, not only with tax evasion, but also with many aspects of social order, such as speculation, corruption, bribery, smuggling and peddling contraband and other cases of a great relationship, even as corruption, money laundering, Piandai, bribery and other criminal activities facilitated. Song invoice this line of defense will the criminal economy open the door. Therefore, to eliminate false invoices, not only the tax authorities of their responsibilities, but also the consensus of the whole community.

As “invoice” shoulder the responsibility of such importance, the printing of “false invoices” are also very risky. Why are people going to risk printing “false invoices” do? According to experts, in many organs, enterprises, some enterprises and individuals in order to grab more benefits, tax evasion, tax evasion, etc., this requires a lot of false invoices for false accounts; also for more out of false expenses for reimbursement on behalf of the unit to receive cash, also need to fake invoices. Some companies give employees to strive for more “welfare”, but also through various means of collecting, buying a large number of invoices, to increase the cost of falsifying expenses, to achieve the purpose of tax evasion. This is leading to create false invoices for one of the main strong.

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Can your Freight Invoices be Factored?

The trucking industry is growing by leaps and bounds. It is a well-known fact that the industry will grow consistently for the next decade. Basically, trucking companies are delivering truck loads of freight every day and are growing quickly and profitably. They are an engine that is driving the economy.


This is all good news for trucking companies, at least for those that can deal with the challenges of paying for repairs, fuel and meeting payroll on time. This can be challenging for a new and growing company, since most clients pay their freight bills in up to 60 days. Waiting can kill the business.


Of course, going to the bank for money won’t help. Banks only finance businesses that have good cash flow, lots of assets and can provide three years worth of financial statements. Of course, if you could meet those requirements you would not need business financing.


A better option is to factor your freight bills. Factoring can provide you with money to pay for repairs, fuel and drivers. And as opposed to bank financing, factoring is easy to qualify for and simple to use.


Here is a sample transaction:


You sell your freight bill to the factoring company

The factoring company advances you up to 95% of the bill (90% is more common. Sometimes a small reserve is held)

Once the freight bill is paid, the fee is charged and any reserves are rebated

The main requirement of factoring is that you do business with credit worthy clients that pay their invoices consistently. The service can generally be set up in a few days, and once it’s set up, the financing is continuous.


As an added service, factoring companies will also check the creditworthiness of your new prospects, enabling you to only do business with clients that will pay their invoices on time.


Many trucking company owners have used freight bill factoring to grow their transportation companies, enabling them to take on new loads, and add equipment while easily keeping up with expenses. Factoring can help you drive your trucking company to financial success.


About Commercial Capital LLC

Are you delivering truck loads and freight loads of cargo? We can provide you with freight bill factoring. Call (866) 730 1922 for a quote and consultation.

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Sticker or Invoice: How Much Should you Pay for your Next New Car?

For most of us, the idea of buying a new car fills our hearts with dread. We nervously approach the salesperson. We discuss. We haggle. We finally walk out of the showroom with the keys in our hand, but we can’t shake the feeling that we may have overpaid for the car.

How do you know what you should be paying for a new car? The answer is easy: Do your homework. A little bit of time spent researching at home gives you the option of purchasing a car with confidence.

The sticker price

The sticker price of any vehicle is a nice bit of fiction. It is an inflated dream the dealership would love to realize. Car salespeople tell you that the sticker price should be the starting point of your negotiations. It shouldn’t be. In fact, the sticker price bears no relevance whatsoever to the proceedings to come. Don’t even look at it. The only reason to glance at the sticker in the window is to determine what options are available on that specific car if you are thinking of purchasing it off the lot. Otherwise, disregard sticker price entirely.

Where do I start?

Your research should be complete before you ever leave the house. Begin by choosing the perfect vehicle. All car manufacturers have detailed websites that allow you to research the vehicle thoroughly and even “build” an ideal car. Once you have found the ideal car, it’s time to find out how much the car really costs. Again, the internet is your friend.

Many websites offer insight into how much the dealership actually paid for the car – the invoice price. This price should be your starting point for negotiations. Once you know what the dealership has paid for the car, you can figure out what a reasonable profit would be.

Think you’re done? Not quite. While figuring out the profit margin of the dealer can be a good strategy to getting a better price on a car, there are a few other things to consider as well.

Check to see if the dealer is receiving any rebates from the manufacturer on the vehicle. These rebates are offered to dealers on certain models. If a rebate is available, then even if the dealership sells at or below invoice price, they are still making a profit. Most car-comparison websites offer this information.

Consider the popularity of the model. If you are trying to purchase a car that is in extremely high demand, you may find that there is no negotiation. The sticker price – or even above – may be the best deal you’ll find. Thankfully, this is an unusual situation. With most car models, there is significant room to bargain a price you’re comfortable with.

Once you’ve gathered all your information, you are ready to shop. Visit several dealerships and see who offers the best price. Once your salesperson realizes you are armed with all the inside info, you’ll get the best deal possible.

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Due2pay ……gets Your Invoices Paid Quickly

Things are undoubtedly tough for business with the retail sector suffering and major banks are tightening their belts as their customers fall behind with their repayments. These are extremely worrying developments for the whole business community.
This has led to larger companies getting more aggressive and
1) forcing extended credit terms on suppliers
2) demanding discounts on already agreed prices
3) demanding settlement discounts for just paying on time
4) Imposing retrospective rebates for goods already delivered.
5) Using late payment as an easy way of funding their own cash flows.
These are extremely worrying developments for the whole business community.

It is now more important than ever for small businesses to protect themselves and ensure invoices are paid on time. This will help them avoid potential cash flow problems, which, if not addressed quickly could result in the ultimate closure of their business.
The internet based service helping victims of late payments launched by DUE2PAY LIMITED has been specifically designed to help these companies recover their overdue invoices, without the need to go to court, also to share information on companies identified as late payers by fellow members, giving them the opportunity to make more informed decisions in dealing with a particular company.
Compared with other methods of debt recovery and business debt collection, DUE2PAY puts customers on the spot by letting their members know that a business is late in paying their invoices.
There are many companies in the UK which wonder why they are not being paid depsite doing a company credit check. All too often, they find out too late that whilst they have not been paid and refuse to supply more goods, their customer has taken on another supplier with whom they are building up more debt.  We know the story from here, the customer goes bust owing thousands of pounds.
DUE2PAY does not take a commission, fee or perentage, just a low monthly membership gives access to some unique features to put the supplier in the driving seat.

 

 

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How Factoring Works for International Invoices

If you are an exporter of goods to other countries, then at some time or the other, you must have faced a cash crunch and wished that you had ready cash in hand, instead of having to wait for your customer’s payments to arrive. Well, you now have a way of getting ready cash against your international invoices. Here’s how.


Due to heavy competition, you could have been forced to offer credit to your customers. If you have exported your goods on credit, then your local export factoring company will “buy” your receivables off you after you have dispatched the goods to your customer. They will send these receivables to an import factoring company situated in the same country as your customer, who will then do the follow up in getting your payment released on the due date. So, in international factoring, two factoring companies are normally involved.


You will get around 90% of your invoice amount immediately within a few days, which will be wired to your account by your factoring company. The balance will be transferred to your account, once your customer has released the payment on the due date. This last payment will be minus the factoring company’s charges for providing you this service, which is normally 2.5% to 4% of the total invoice value. This percentage of charges will depend on the credit period you have given to your customer, the credit rating of your customer as decided by your factoring company, and the total amount of business, value wise, which you provide to your factoring company.


These factoring companies can also take care of your collection of payments from your customers. This can be a boon for you, since you can now concentrate more on sales rather than worry about collections. The factoring company will send you regular updates of the receivable reports of your customers, enabling you to have an accurate status of your financial side of your business.


The advantages of international factoring are that your cash flow improves immediately, enabling you to pay off immediate expenses like staff salaries, bulk purchases, etc and also eliminates the need to maintain an international collection department. This facility also gives you a chance to expand your business by taking on more exports to different countries, where your factoring company has tie-ups. This facility is also convenient rather than taking a bank loan, which would normally require guarantors, collateral and intensive documentation. You would have to pay interest on that loan in any case. International factoring is more like an extension of your current business, as it takes care of your payment collection as well as provides you with ready cash.


You should note that these services of an international factoring company are slightly expensive, since two factoring companies are involved. There should also, not be any quality problems with regards the goods, which you have exported. You will also have to commit a minimum amount of business to your factoring company. Since your factoring company might take over your collections side and even take care of your bad debts, there could be some friction between you and your customers. Your factoring company might also ask for collateral from your customers as a guarantee against bad debt, which your customers might be averse to giving.


So, after studying the above points, you too can go in for international factoring of your invoices, to put your business on the fast track.

Freight Factoring provider The Phoenix Capital Group can provide competitive finance rates for Freight Bill Factoring. For a no hassle quote visit our website: http://www.phoenixcapitalgroup.com.

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Due2pay Latest and Best Cost Effective and Simplest Way to Get Invoices Paid

With one in four business failures attributable to interruption of cash flow, getting invoices paid on time is important.

 www.due2pay.co.uk has  tackled a hitherto taboo area with their unique online ‘debt recovery’ service.

 

No one can guarantee debt recovery, DUE2PAY’s approach is totally new, simple and amazingly cost effective. They feature no commission or percentage taken from any invoice. Members register their unpaid invoices and ask their suppliers to pay up within 14 days. If this does not happen then other members will be able to see this.

 

DUE2PAY is the biggest UK member only internet club which  can be accessed by any one from anywhere in the UK. Consider concerns about a new potential customer, credit checks show that they are OK but there is an underlying worries about why they are coming on strong for you to supply them. A check with DUE2PAY could show that they are late in paying an invoice, BUT if they are not listed, put them on the unique WATCHLIST.

 

By putting a company on the WATCHLIST you will receive an email whenever any company on that list has been listed as a late payer.

This can be used in two ways, 1) to keep an eye on an existing customer and 2) to keep an eye on businesses which you may consider doing business with in the future.

The aim of DUE2PAY is to create a level playing field in an area which is totally biased to the late payer. DUE2PAY is not one sided or biased to the supplier. The debtor can register a debt as disputed, anyone can contact anybody else in the supply / customer relationship. The supplier can speak with other suppliers and the debtor can answer questions from other suppliers which may be considering doing business with the debtor.

 Take control of credit control today

Check www.due2pay.co.uk and take advantage of the free membership period followed by only £15 per month.

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FSIA Seeks Bank Aid for Discounting Invoices

The Faridabad Small Industries Association (FSIA) has sought for additional time from banks and financial institutions for discounting invoices and gaining a quicker access to pending payments from buyers.

The Faridabad Small Industries Association (FSIA) has sought for additional time from banks and financial institutions for discounting invoices and gaining a quicker access to pending payments from buyers. The association has suggested the Reserve Bank of India (RBI) to issue directives to all the banks for discounting invoice bills up to 180 days.

“Amid the global slowdown, small firms are facing severe liquidity crunch due to held-up inventories. This has also led to the problem of delayed payments. In view of the adverse impact faced by SMEs due to delayed payments, we have requested the RBI to issue circulars to all banks to discount invoice bills up to 180 days,” revealed Rajiv Chawla, President, FSIA.

FSIA has also requested the Indian Banks’ Association (IBA) to increase its working capital limits to SMEs in the country. “However, the benefits of increased sanction limits could help the SME sector only if the banks discount bills up to 180 days, instead of the existing 90 days,” commented Mr Chawla.

The association has also sought banks to reduce their margins on stocks and book debts from 25% to 10% in order to ensure additional cash flow to the SME segment.

“We have submitted our recommendations to the RBI and are optimistic that it would consider our suggestions. In addition, we are hopeful that the RBI would take immediate actions to provide more working capital to the SMEs,” said Santosh Roy, Spokesperson, FSIA.

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David Parks is a well known author and has written articles on Trade Shows, B2B Portal, Business Directory, suppliers, Manufactures and many other subjects.

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