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Factoring Invoices Pros and Cons: An In-Depth Look at the Mechanics of Invoice Factoring

| Share on Facebook Share on Linkedin Share on Twitter Contents Invoice factoring is a type of financing that allows entrepreneurs to advance cash against the value of their accounts receivables. In other words, you take out a loan ahead of the cash that you’re yet to collect from your customers or debtors.Let’s define invoice…

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A Definitive Guide to Asset-Based Finance

| Share on Facebook Share on Linkedin Share on Twitter Contents Key Takeaways Asset-based finance or asset-based lending requires borrowers to put up collateral to qualify. Some of the most common collaterals you can use are real estate, accounts receivables, heavy equipment, and inventory. Note that lenders won’t offer a fixed interest rate for asset-based…

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A Beginner’s Guide to Invoice Financing Definition for Business Growth

| Share on Facebook Share on Linkedin Share on Twitter Contents Invoice financing is a type of short-term borrowing extended to your business by a lending institution based on your customer’s unpaid invoices.  It means you can get your invoices paid immediately rather than waiting for a longer time. Collecting payments from your customers can…

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How Can Small Business Factoring Preserve Your Working Capital?

Invoice factoring also indirectly helps the business retain good business credit. Creditors are happy whenever their clients pay back their debts on time. In return, they will make a favorable report on the your credit history. Having a good credit score happens to be a crucial factor in being eligible for other forms of financing.…

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Inventory Loans vs. Inventory Line of Credit: What’s the Difference?

| Share on Facebook Share on Linkedin Share on Twitter Contents Inventory financing allows you to leverage your company’s unsold inventory in exchange for immediate and revolving cash flow. Through financing, your business could secure the funds necessary to grow your business. There are two types of inventory financing available for entrepreneurs. These are, namely,…

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A Deep Dive Into the History of Invoice Financing

| Share on Facebook Share on Linkedin Share on Twitter Contents Invoicing is not a modern invention. It has been a useful tool for enterprising individuals since the time of the ancients. Merchants needed a tool to keep track of payments owed and to present proof to their customers. The ancients also used forms of…

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Invoice Factoring: An Ultimate Guide for Small Business Invoice Factoring

| Share on Facebook Share on Linkedin Share on Twitter Contents You’ve probably considered or heard about invoice factoring if you own a small business with slow-paying customers or occasionally limited cash flow.Invoice factoring for small businesses is a sort of accounts receivable finance in which you sell your unpaid invoices to a factoring company…

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A Deep Dive Into the History of Invoice Financing and Selling Invoices

| Share on Facebook Share on Linkedin Share on Twitter Contents Invoicing is not a modern invention. It has been a useful tool for enterprising individuals since the time of the ancients. Merchants needed a tool to keep track of payments owed and to present proof to their customers. The ancients also used forms of…