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What Does Factoring Mean?

Apr 29
Posted by admin in Articles

For a small businesses, there is another definition for factoring, other than the mathematical term. Factoring, or invoice, is also a financial service whereby a factor or a factoring company advances funds to a business in exchange for their accounts receivables. In other words, the business sells or transfers title to its accounts receivables to the factoring company, and subsequently, the seller’s customers send their payment directly to the factor in 30, 60 or 90 days later.

Factoring was first used by the Mesopotamians about 4,000 years ago, and history tells us that the Romans also used a type of factoring. They sold discounted promissory notes to a secondary market. when the American colonists settled in America, they factored goods like furs and timber from the new country to European merchants who paided the colonists advances. (i.e. they factored) and this helped the cash flow for the Colonists so that they could continue their businesses.

Factoring offers an excellent source of cash flow, and most factors do not expect to buy 100 percent of a company’s receivables, and there are no minimum or maximum sales volume requirements. There is even a new form of factoring known as “single invoice factoring,” where small to medium-sized businesses (SMEs) can factor one or two invoices at a time every month. This form of factoring has grown increasingly popular since the economic downturn, and since it is difficult for many businesses to get loans or credit. Anyone can get the cash they need without a long applicaiton process, minimums, maximums, or a long-term commitment.

A factoring company’s professional rates are competitive. Why? Because each of its client’s circumstances vary, and this may have an impact on the fees. A business can often make choices of invoices to be factored, enabling them to retain most of their money, and this guarantees adequate cash flow. Invoice factoring provides a business with upfront cash quickly — often in as little as 24 to 48 hours — and you do not have to wait days, or worse yet months, to get approved, like it is when you apply for a loan. A factoring agreement just takes a couple of days to set up, then you can often get the funds by the next day.

Plus, the good news is that you can sell your invoices to the factor over and over again without having to be approved every time, so that you can get the funds faster. Factoring will improve a company’s cash flow for better day to day operations. Factoring continues to be a viable alternative to traditional financing such as loans, and credit cards.

Almost any business with good clients and outstanding invoices can benefit from invoice factoring.

The Interface Financial Group provides short-term financial resources including invoice factoring, serving clients in the United States, Canada, the United Kingdom, Singapore, Australia and New Zealand. IFG offers factoring, accounting, finance, law, marketing and banking. (www.IFGnetwork.com)

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Businesses Get Cash Faster than Loans Via Factoring

Apr 29
Posted by admin in Articles

Today’s small business owners have discovered a new source of funding called invoice factoring. Although this financial strategy has been around for centuries, it seems more people are discovering it today.

Once the factoring company has done their due diligence to make sure the work by their client was satisfactorily completed, accounts receivables factoring takes very little time for the factor to set up. And the good thing is that unlike a loan, you can be paid by the factoring company in 24 to 48 hours. You can get the cash they need without a lengthy and time consuming lending process for a loan at a bank. Small businesses can factor one or two invoices at a time, or all of their accounts receivables.But first you need to find a factor and begin doing accounts receivable factoring.

Most small businesses who cannot grow to the next level are dealing with consistent cash demands in their business. Knowing that the paychecks of future employees will be covered can help support the rapid growth of any business. Most businesses have monthly minimums in terms of bills. Factoring offers an alternative cash flow source to small and medium-sized businesses. Invoice factoring has always supported fast growth for businesses.

Loans for a small business can be really hard to come by for a startup, while factoring is not difficult at all. Many new businesses try to qualify for a bank loan, however, what they may not realize is that they have to be in business long enough to establish good credit and show all the documents and business revenue that prove you can pay the loan out of company revenues.

A frequently asked questions includes the following: What collateral are the funds for invoice factoring? Funds available via a factoring company are usually based on current collateral, and this is primarily based on the amounts due for the invoices you generate for products or services you have already provided, and those that you have invoiced for. So the amount of money you receive one month depends on the amount of work you completed the previous month, as accounts receivables can vary from month to month.

Look at it this way, taking on more clients is now a viable option. If your business is being held back by consistent cash flow problems, you need to learn more about invoice factoring.

Kristin Gabriel writes for The Interface Financial Group (IFG). (http://www.ifgnetwork.com) The factoring company provides short-term financial resources serving clients in more than 30 industries in the United States, Canada, the UK, Singapore, Australia and New Zealand. IFG offers expertise in invoice factoring, accounting, finance, law, marketing and banking.

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Buy A Bargain Motorhome With A Secured Loan Or Remortgage

Apr 28
Posted by admin in Articles

Spring is well and truly here in all it’s glory, and the most awful Winter imaginable is now absolutely in the past.

For the last few days or so, the world about you has been a great place to live in, not only because of the sunny weather and the new growth of flowers and trees in your garden, but also because of the fact that for the last three months you have been in a very good and well paid job, and your probationary period is now at an end.

The confidence in life and the looking forward to the future is now very much part of you, just as it used to be before you lost your job during the recession.

Your renewed joy in life, and your good salary makes you want to plan the trip to Europe that you had put in the back burner due to your lack of confidence in your security of employment.

For years your partner and you had discussed buying a motor home and touring the continent with it once your children were capable of looking after themselves, and your budget stretched to it.

These two conditions have come to fruition, and what you now have to consider is the best way of buying your home from home on wheels and paying for the trip in general.

You have lived at the same property for over 20 years buying it for £150,000, and now your home is worth in the region of £380,000 with a mortgage of only £80,000.

You can go to a dealer who can arrange a loan for you, but the disadvatnages in this are that a deposit of at least 30% of the purchase price is needed, the interest rate can be quite high, and the repayment period is often a maximum of seven years.

Homeowners can use better ways than this when they want to buy an expensive object. As regards buying a motorhome, these methods eliminates the need for a deposit, have low rates of interest, and their repayments can be spread over 25 years.

With equity being the sum that remains when the mortgage balance is deducted from the value of the house, you are in the fortunate possition of releasing a little of this equity to raise funds to pay for your motor home and the holiday of the life time.

By this we are referring to secured loans and remortgages which are loans that homeowners can avail themselves of to buy almost anything they want at a very cheap interest rate.

A remortgage or a www.championfinance.com”>secured loan make it possible for people to buy things that they could not otherwise afford, as secured loans have rates from 7.9% and remortgages are available from little as from under 2%.

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Will 80 Paydex Scores Really Open the Credit Floodgates?

Apr 28
Posted by admin in Articles

Achieve an 80 paydex score and your business will be able to qualify for all the credit it needs.

Have you ever heard that statement before?

It’s by far the most misleading and misguided advice circulating the industry and unfortunately too many small business owners are buying into this misinformation.

In this post let’s shed some light on this very issue so you can gain a much better understanding of what to expect during the credit granting process.

First, in order to get a Paydex score your company needs at least four payment experiences reporting on your company’s Dun and Bradstreet credit file.

Now if you’re not familiar with Paydex scores it’s basically a unique dollar-weighted numerical indicator of how your business pays its financial obligations with scores ranging from 1-100.

Similar to how lenders use personal credit scores to determine a consumer’s creditworthiness a company or lender uses a business credit scoring system like Paydex to determine a company’s creditworthiness.

Keep in mind that the Paydex score is Dun and Bradstreet’s own scoring system while Experian has its own Intelliscore and Equifax uses the Small Business Credit Risk Score.

When it comes to Paydex a score of 80+ is considered a good score and some compare it to be like having a 720 personal credit score.

While many suppliers and creditors use Paydex Scores in the credit granting process there are many other factors that are looked at that fail to ever get mentioned.

These other factors include:

*Highest Available Credit Limits

*Payment History

*Types of Accounts

*Age of Accounts

*Debt to Credit Limit Ratios

*DNB’s Credit Limit Recommendation

For example, you can have four positive trade references reporting on your DNB file with $500 being the highest credit limit on all four accounts and still score an 80 Paydex.

This is because DNB’s rating system requires a minimum of four positive trade references but if the four you have are small limits then this hardly qualifies your business to get approved for thousands of dollars of cash credit, lease credit, business loans and business lines of credit.

In addition, having your business only listed with Dun and Bradstreet is like having only one personal credit file with one credit reporting agency.

Let’s say all you have is a personal credit profile listed with Equifax but have no file with Transunion or Experian. You would never be able to get approved for a mortgage because lenders do not have enough information to determine your overall creditworthiness.

This holds true for your business as well. In order to show your company’s complete credit picture you will need to have a profile established with all three major business credit reporting agencies.

So simply having an 80 Paydex score does not open the credit floodgates unless you have other positive factors listed above which ultimately play a key role in the size of the credit limits and payment terms that lenders are willing to extend to your business.

However, achieving a positive score of 80 does have its benefits and will enable your business to qualify for many net 30 and net 60 accounts with suppliers but don’t expect large credit limits until your company has proven itself with a solid payment track record as well.

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Desperate Housewives Pay the Mortgage with a Credit Card

Apr 28
Posted by admin in Articles

Housing charity Shelter has disclosed that over 2 million desperate UK householders have resorted to paying their mortgage or rent with a credit card. A Shelter survey, conducted in August 2010, revealed that 6% of UK households had used plastic cards to meet housing costs and keep a roof over their heads.

Working class people are the most likely to use their plastic cards in this way, but 4% of ABC1s also admitted resorting to a credit card to pay their mortgage.

With more and more people facing redundancy and unemployment, the recent VAT increase and steadily rising prices, the charity has warned that many people will be starting the New Year with the threat of eviction or repossession hanging over their heads like the Sword of Damocles.

Sometimes just a small thing, like a bout of illness, rent increase or drop in income, is enough to nudge a family into a vicious downwards spiral of debt and arrears. Consumer champion Martin Lewis of the MoneysavingExpert website advises householders to resist the temptation to pay housing costs with their plastic:- ‘If you’re doing it because you can’t afford to pay your housing costs, lumping up the borrowing is never the answer – far better to seek help as soon as possible and start managing the problem.’

In 2010 repossessions were lower than predicted, probably due to interest rate cuts and government-funded help for struggling householders. The Council of Mortgage Lenders (CML) has predicted that repossessions will increase by more than 11% in 2011, however, to a total of around 40,000, and that the number of UK mortgage arrears will grow from 175,000 to 180,000.

The government’s decision to scrap its mortgage support schemes as part of its current round of swingeing spending cuts is partly responsible for the increases, according to the CML. Since the Credit Crunch it is more expensive to borrow money, mortgages are hard to come by, and finding an affordable mortgage deal is likely to become even harder in the future.

The spectre of homelessness can only be staved off for so long by the use of expensive credit such as credit cards, which are now at a 13-year interest rate high. Campbell Robb, Chief Executive of Shelter warns that those experiencing financial difficulties should seek out expert help on how to keep their home as a matter of urgency:

“Shelter has a network of advice services across the country offering free advice on a range of subjects including debt and housing issues so we would urge anyone struggling to get in touch today. The sooner they seek help, the more options are available.”

Charlotte Mooney is an IT professional with many years experience, now working for IT Software Consultancy Proswift, a leading provider of international credit system solutions to banks and finance houses. Click here for more topical stories from the world of credit card processing. ProSwift News

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Mortgages And Remortgages Have Risen

Apr 27
Posted by admin in Articles

Over the course of recession and right until now, the property market has been in an ailing state and this applies to all type of property.

This was due to the effects of, and also to the aftermath of the recession which resulted in many people being afraid to ether buy their first property or to move house because the lack of personal economic confidence as well as that of the country as the whole.

As fewer poeple than normal were buying property, the number of mortgage applications inevitably fell correspondenlly, as of course mortgages are the loans required to buy a property.

Due to this lack of confidence, the homeowner loans of secured loans and remortgages were also at a low ebb.

A remortgage is only a new mortgage taken out by different mortgage provider on an exsiting property which can be for the same amount or for a higher sum than the original, the funds of which can be used for many purposes.

Therefore for several years now the demand for property, mortgages, remortgages and secured loans, which depend on the housing market were not in great demand.

Now it looks like the tide may be turning, as the National Association of Estate Agents are reporting a considerable increase in the number of people registering their interest in properties both new and old with local estate agents.

At the same time, things are looking more optimistic, with the statement by the Council of Mortgage Lenders that mortgages went up by more than a fifth by 21% last month.

This figure includes remortgages by homeowners hoping to secure a better mortgage deal, especially as there are strong rumours that interest rates are set to rise in the very near future. An interest rate hike is very unwelcome news after several years of the lowest Bank of England Base Lending Rate in history of half of one percent.

The total amount of mortgage and remortgage business arranged in March was the highest since Novermber of last year, and the sums borrowed are eleven point three billion pounds. However it is to be hoped that our feelings of optimism are not too soon as the amount of remortgages and mortgages advanced in March of last year was higher than this March, standing at eleven point five billion pounds.

Remortgages have faired better than mortgages, as in February they acheived their highest level for the last two years.

However although the housing and remortgage market is showing slight signs of improvement, there is still a long way to go before they reach their pre recession level.

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What You Should Know Before Filing For Bankruptcy

Apr 25
Posted by admin in Articles

If your finances are in danger, do not panic. Before you go off in search of a bankruptcy attorney, there are a few things you should come to understand about this particular problem. While the following information is in no way meant to stand in for legal advice, it is a good idea to get a general idea of the basics before seriously considering the assistance of a bankruptcy attorney.

Bankruptcy is a federal court proceeding — one which seeks to liquidate a debtor’s assets and relieve the debtor of further liability. There are two types of proceedings, Chapter 7 deals with liquefying assets and Chapter 13 deals with debt reorganization.

With Chapter 13, a debtor may see their debt consolidated into a single monthly payment which can continue over a period between 36 and 60 months. A payment plan would not extend longer than five years, and debtors pay as much as they can afford to pay. Monthly payments are likely to reflect all of the assets a debtor plans to keep, and any debt leftover after the last payment is made is voided.

Chapter 7 is the slightly more appealing option, but recent changes to the laws have made filing for it more difficult. After filing, a court-appointed trustee will liquidate some of a debtor’s assets in order to pay creditors. After these items are sold, debt is cancelled. It is important to note that the debtor is generally allowed to keep a car or home in which a creditor has a lien.

Before filing, seriously consider the disadvantages of being officially labeled bankrupt. First, being declared bankrupt may affect your future, as it will appear on your credit score for 7-10 years after the fact. This means that you may not be able to obtain a mortgage loan or a car loan for quite a while. Secondly, not all of the debt accumulated will disappear. Child support, alimony, relevant student loans, divorce settlements and some income taxes fall into this category.

On the other hand, there are advantages to filing, especially if bankruptcy offers the only shining light at the end of the tunnel. Besides a fresh financial start, Chapter 7 allows debtors to be forgiven most unsecured debts (secured debts are usually met by selling a debtor’s assets). A debtor may be entitled to keep many of their assets, depending on what is dictated by state law. Debtors cannot be fired from their jobs due to bankruptcy status, and attempts to make collections must stop when a debtor files for either Chapter 7 or 13.

Keep in mind that filing for bankruptcy does not necessarily guarantee the complete forgiveness of all debt. Filing may not be the best option for everyone, and it is essential that debtors obtain advice from an attorney if they are hoping to hang on to a car or home after declaring bankruptcy. Anyone wishing to file for Chapter 7 is required to seek credit counseling which ultimately may not be such a bad idea, even for a debtor who does not end up filing.

Stewart Wrighter recently spent time researching bankruptcy with the help of aBankruptcy Dallas specialist. He searched the termFrisco bankruptcy attorney to find a law practice in the area.

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New Build Homes For Sale In Leicester – April 2011 Update

Apr 22
Posted by admin in Articles

Located in almost the centre of the country, Leicester is very well connected in terms of transport links, with its proximity to the M1 motorway. It’s also a key stop for trains going to and from London on the Midland Main Line, running straight into London St Pancras station, giving residents easier access to the continent via Eurostar services. Boasting two universities, both Leicester and De Montfort, and a range of good schools and shops, it’s an ideal commuter spot for families to find a property to settle in.

New property for sale in Leicester is very affordable, and a wide choice is available. In the west end area of Leicester’s city centre, Barratt East Midlands is selling two-bedroom flats at Freemens Meadow, which is within walking distance of the trendy Narborough Road and Braunstone Gate areas of the town. Prices start from £158,995, and Barratt Homes’ Head Start shared equity scheme is available for buyers looking to put down a 5% deposit, to gain 85% equity. The remaining 15% is funded by a deferred loan from Barratt, which is payable in ten years, or when the buyer sells the property.

A more rural option for buyers is another development from Barratt East Midlands, Kibworth Green. Located in the village of Kibworth, just a few miles away from Leicester’s centre and also within easy reach of neighbouring Market Harborough, with good access links to the A6, Barratt is selling two-, three-, four- and five-bedroom homes here starting from £159,995, going up to £249,995. For buyers in a hurry to move but with a home to sell, Barratt is offering a part exchange deal where they can make an offer for the existing home within just 24 hours. Kibworth itself features a range of independent shops and restaurants, so is a more relaxed option for those wanting a break from busy city life.

David Wilson East Midlands’ Scholars Grange scheme in Scraptoft is a similarly pretty rural development featuring family homes, with prices starting from £194,995 for three-bedroom homes. Recorded in the Domesday Book as Scrapentot, Scraptoft features a range of attractive listed buildings as well as a good selection of shops, with easy access to Leicester city centre. Stamp duty for buyers will be covered under a deal offered by David Wilson Homes.

Redrow is selling homes at the small development of Rossendale Gardens in Earl Shilton, five miles from Hinckley and ten miles from Leicester, starting from £154,995 for three-bedroom homes. Based close to Earl Shilton town centre, a 85%/15% equity share is available on some plots. A busy industrial town in the 19th and 20th centuries, with a rich local history, Earl Shilton is now a relatively small and bustling town, with around 9,000 inhabitants.

Coalville is another option worth considering for buyers looking for affordable new homes in Leicester and the surrounding area. Stamford Homes is selling three-bedroom homes at Ashby Heights starting from under £105,000 with the housebuilder’s EasyStart shared equity 75%/25% scheme. Stamford Homes will pay 25% of a home’s price for buyers with an interest-free loan of up to three years. Buyers can take out this loan for up to ten years, ensuring they manage to complete on the home’s purchase within the time period set by Stamford Homes. Buyers who reserve through this scheme will receive free fitted carpets.

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How To Save Money In College

Apr 21
Posted by admin in Articles

We all know how important it is to go off to college and get a good job. If you want a good job, it is easier to go to college first, but college is not for everyone and some people who do not go to college are very successful. College is not an easy thing to do and it is certainly not cheap, so there are ways to make the most out of college and spend less money. Each year you have to fill out a FAFSA and then the school that you attend tells you how many loans you will have to take out and how much money you are awarded in free money. Students loans can be a little tricky at some times, so make sure you check with someone to make sure you know which loans have the most interest before you commit to them. A federal direct student loan is typically a loan that the student has to pay off after they graduate. Some loans accumulate interest while you are in school and others do not begin accumulating until after your graduate.

The first step towards making the best financial choices in college is making sure that you can afford the school you are going to. By looking over how the FAFSA results, you can see grants and an expected family contribution. Depending on whether or not you are living on campus, you do not have to take all of the money that is given to you. If you have the option to take only a part of it, you should take all the free money you can get and then choose the loans that do not start accumulating interest right away.

After you have determined how much money you will have to pay to go to school, you can determine whether or not you want to live on campus. Living on campus is a great thing to do for the first year, but after that it could be nice to move out on your own which could actually be cheaper than staying at school.

Once you are in college, it is nice to have a part time job so that you can save up for books or buy a coffee every once in a while. The most important thing to know while at school is that you are there to learn and you will most likely not have a whole lot of money that you can spend. You can make a little budget for yourself and just buy what you need as you go on but always make sure you have a little extra cash for books or emergencies.

If you live on your own in college or off campus with friends, you will need to be much more frugal. It is very important to make a budget for yourself while in college and stick to it. There are ways to save your money, you just need to spend as little as possible and that starts with paying for your tuition. It is crucial to know what each loan means so that you make the right choices.

Stewart Wrighter recently spent time researchingstudent loans. His son is going to apply for afederal direct student loan.

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