I have written several times about using accounts receivable financing as a way to help fast growing companies, companies that have had uneven profitability, seasonal businesses and those that have large new projects or customers to serve.
Accounts receivable financing is also commonly known as factoring and over the last 20 years it has become a mainstream way for companies to accelerate cash flow and grow without incurring long-term debt or raising equity.
Picking a factor is much tougher than picking a bank. Though the industry as a whole has many good companies and banks that provide factoring, there are still some unscrupulous factoring companies preying on un-educated customers. There are many things to consider including the factor’s rate, the advance rate percentage of A/R, requirements to factor a certain volume each month, and a host of other kinds of fees.
The good news is there are enough factoring companies around to find one that fits your company’s needs best.
Tuesday September 9, 2008, I will be hosting a free webinar about the ins and outs of factoring, and provide information about using your accounts receivable to gain valuable working capital. If you are considering the possibility of factoring or need working capital and are a company that has accounts receivable, the webinar will be of great value to you. I have been a banker involved in bank factoring for over 15 years and have learned a great deal I like to share.
Below are the details of the webinar if you have an interest in attending.
9/9/2008 Free Small Business Webinar
Time: 10:00 AM CDT
Topic: Accounts Receivable Financing (Factoring) for Working Capital
Time: 50 minute presentation, 10 minutes Q&A
Instructor: Sam Thacker – Business Finance Solutions
Intended Audience: Small business owners who sell products or services to other businesses, their controllers, accountants, and CPAs.
Description: Accounts Receivable Finance (Factoring) has become a mainstream method for small and fast growing businesses to obtain working capital for their businesses. Factoring benefits businesses that sell to other businesses on credit and who may be growing very fast, have seasonal or cyclical sales, or have had a history of uneven profits and needs to generate working capital. This webinar will explore different types of factoring available as well as how to pick a reputable customer focused factoring company as well as the mechanics and cost of factoring as a source of working capital.
To Register: write email@example.com, provide your name, company name, and phone number to reach you.
You may contact Sam directly at: firstname.lastname@example.org
or follow him on Twitter: SMBfinance
EXTRA: If you have questions for Sam regarding business financing, the credit market, and similar issues, please send an e-mail. Your questions will be recorded and Sam will answer the best ones in his Ask the Expert podcast show.