Cashflow and Working Capital

Think of Cashflow as the blood running through a business and working capital as its heart. A healthy business needs to have great cashflow and strong sources of working capital. If it has both then it has a great chance of being around a long time. If it doesn’t then its chances of survival are […]

Why Do I Have To Sign A Personal Guarantee?

Whenever I am asked that question, I think of the four possible reasons why they would ask: either they are inexperienced, taking poor advice, have an awfully bad personal credit rating or they plan to commit fraud. I know that my underwriter would also add “if they don’t believe in their business then why should […]

Can I Factor a Purchase Order?

Since the pandemic began, I have been getting calls to finance large Purchase Orders for PPE’s of all types. In most cases they were looking for a lender to take all the financial risk, so that they could create a business and earn a big profit. I would explain the facts and what it takes […]

How Does Factoring Work?

Simple is good and the fewer working parts there are the less likely something can go wrong. Simple is easier to understand, figure out and fix. When it comes to financing a business, nothing is simpler than Factoring. When a small business owner (the Seller) factors an invoice from a customer (the Debtor) it is […]

Why Should I Factor?

It was a good question before the pandemic and an even better one today. Credit is tighter; many small business lenders are out of business and what money is available is only there for the bigger and better businesses. Start-ups, rapid growth, and turnaround businesses who need a quick solution will find that Factoring is […]

What Will My Customers Think If I Factor?

This is my favorite question and one that I have been asked a thousand times. I hate to think about the business owners who were afraid to Factor and never asked me that question. Did they give away big chunks of their business? Did they go out of business? Did they take on an “easy […]

What About My Bank If I Factor?

Banks and factors make good working partners because neither can provide what the other can offer, and both want their clients to succeed and grow. Every business is different and has its own challenges but when banks and factors work together, they provide both the flexibility and control that is needed to grow or turn […]

Who Needs To Factor?

Lots of business owners already Factor and do not even know it. Every time they accept a credit card or offer a discount for early payment they are Factoring. The ones who wish all their customers paid early and took a discount are the same ones who should be Factoring. Many entrepreneurs fail because they […]

How Much Does It Cost To Factor?

Business owners never want to pay too much for financing, but it could be worse if they pay too little. When they pay too much all they lose is money but if they pay too little, they might end up losing everything. They should not care so much what their financing costs,but rather whether it […]

How Long Does It Take To Factor?

I like this question because I know that the caller is motivated, their current source of funding is inadequate, and they already feel the pain and realize the costs of suffering from cash flow problems. I try to keep in mind that their lack of planning does not mean it is anemergency on my part […]