Monthly Archives: March 2010

Use Factoring to Catch Up on Debts

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These days many people are realizing that they have too much credit card debt. And with April 15th looming too, and taxes requiring cash, there are things you can do to fix the problerm? When it comes to credit cards, the first fix is pretty obvious. Just stop using your credit cards. Only spend the cash you have – but do it AFTER you’ve paid your bills. Then you might want to consider consolidating your credit cards onto one card – or you could also move the balances from any of the cards that carry a high percentage rate to one with a lower interest rate. In fact you can even try to move to the next 0 percent interest rate card to save a lot of money and buy time to pay off the entire debt. Next start making double payments. If your minimum payment is only on the accrued interest, make a double payment that equals the principle of the entire debt.

Last – stop charging on the cards, and begin making larger payments by using invoice factoring, to get some funds together quickly that will be used soley for paying down the cards. Accounts receivable factoring can provide funds in as little as 24 hours. If you have outstanding invoices that are 30/60 or even as much as 90 days out, get the funds in the door now, and pay the credit cards down to avoid penelties and interest.

For more informaiton go to www.ifgnetwork.com

Paying Credit Card Debt With Factoring

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If you pay a bill on time or don’t pay it on time you’re building, or damaging, your credit history, which affects your ability to purchase items like supplies, or to have a potential source of funds for emergencies or and unexpected expenses in your business. What’s worse, are the insurmountable interest charges, finance and late fees assiciated with credit card debt. In order to maintain a good credit history, you might want to think about doing one or two of following five tips in order to pay off this debt, so you can start to build a stronger credit history:

1.Carefully budget so you know exactly where all of your money is going. And make sure you keep daily records of every single expense. 2. Fund a savings account regularly. One reason people run into credit problems is that they don’t have cash. 3. Pay down your credit cards via ? factoring – also known as accounts receivable factoring. This method has been used by many small businesses to get out of debt. 4. Consider a 401(k) loan to repay credit card debt. 5. IRS rules allow you to withdrawal Roth IRA contributions–if you’ve deposited $20,000 into a Roth IRA over the past ten years and have made $10,000 in profit, you can withdrawal up to $20,000 without any tax penalties. Last, transferring the balances from multiple credit cards to one low-interest credit card can save you money.

Construction Factoring Trends

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Many businesses including the construction industry are having a tough time making ends meet during this recession, and that incudes contractors seeking funds because they are having trouble covering payroll. There’s simply not enough cash to fuel growth, and when that happens it is hard to find jobs, and jobs that have been completed are even paying late.

There are a number of factoring companies who do not offer construction factoring but that is not IFG’s position. IFg offers construction factoring solutions to help companies manage their cash flow problems.

If you are interested in factoring for a construction job, whether it is commercial or residential, you’ll find that factoring is a reliable alternative to standard commercial construction loans.

You will obtain money for your invoices quickly, and that way you will be able to pay for new materials and labor, to stay competitive and bid on other projects.

Accounts Receivable Factoring Aids Small Businesses Waiting for Jobs Bill

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Senate Finance staffers recently talked about how a small business jobs bill is in the works, but they don’t yet know when the package would be brought forward.
Expected to exempt certain small business stock from capital gains taxes and expand loans to small businesses, this bill may not happen until after the recess.

According to recent statistics, the United States has lost 8.4 million jobs since the recession began in December 2007, and many believe that this bill would aid small businesses, therefore helping to create more jobs.

Until the bill is reviewed, small businesses are hanging on via careful budgeting, and tactics like accounts receivable factoring, which can tide them over during tough economic times, as long as they have business and outstanding invoices. Many people are holding bills for 60 to 90 days prior to paying them. So this is why invoice factoring comes in handy. Companies can factor their invoices, then buy more supplies, and keep the payroll going so they can survive.

Factoring for the IRS

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It is really essential that if you are a small business, you never fail to meet tax deadlines, which of course differ depending on when your tax year ends and your business entity. The reason you want to be on time is so that you can meet the government’s filing deadlines and minimize interest and penalties they charge if you are late.

Always organize and carefully file all of your receipts away during the year, and then don’t wait until the last minute to prepare your taxes. Begin to think about it at the end of the tax year, while at the same time taking care of business filing in time for the new year.

Be organized and carefully file away:
All receipts
Credit card bills
Your old checkbooks
Invoices
Bills
Mileage for your vehicles
Canceled checks
Proofs of payment on credit cards
Miscl. businesses expenses

Also remember to set up and contribute to a retirement plan. By contributing to an IRA, you reduce the amount of income taxed by the government, and you will be setting aside money for your retirement. Plus you can contribute to last year’s IRA right up until the April 15th IRS deadline.

And IF you owe the governement money and do not have it by the deadline, rather than being late paying the IRS, think about invoice factoring. This is one time when you could get paid for outstanding customer invoices in as little as 24 to 48 hours.

It is one reason why factoring companies like IFG are busy around this time of year.

Factoring and the Healthcare Bill for Small Businesses

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The healthcare reform bill has been passed, and it is the largest expansion of healthcare guarantees from our U.S. government in more than 40 years. But there are a number of implications for small business owners. The good news is that most of the mandates won’t go into effect until the year 2014. Even so, the bill will lead to questions about how it will impact them once it becomes the law.

One key fact — beginning in 2014, businesses with more than 50 employees will be required to offer healthcare coverage, or they will have to pay a penalty. What’s more, if amendments to the bill pass the Senate with no changes, this will also include part-time employee.

Another fact — any individual who earns more than $200,000 – or $250,000 for couples – must pay a 3.8 percent surcharge on any investment income.

Small businesses might feel better about these healthcare bill requirements if they remember that they can use invoice factoring to cover their expenses towards insurance for employees if they don’t have cash on hand.

Factoring companies like IFG have always assisted small to medium-sized businesses with issues like this. One bill or outstanding invoice, for example, that is owed to a general contractor, could be factored using construction factoring, and then the contractor could cover the costs of health insurance for his employees for the entire year.

Building Credit History

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If you own your own company, then you have probably been there. A bill comes due, but the cash just isn’t there to cover the debt, yet. You have oustanding invoices that customers have yet to pay – 30, 60 and one is even 90 days out.

You also know that every single time you pay a bill on time or don’t pay it on time you’re building, or damaging, your credit history. This affects the ability to purchase items like supplies, or to have a potential source of funds for emergencies or and unexpected expenses.

Here are a few tips for maintaining a good credit history. First, keep a budget so you know exactly where all of your money is going. And make sure you keep daily records of every single expense. Second, open a savings account and fund it regularly. One reason people run into credit problems is that they don’t have cash on hand.

Another way to stay current with bills, pay credit cards off, and have cash on hand is to begin factoring – also known as accounts receivable factoring. This method has been used by many small businesses

Last, if you do have credit card debt, transferring the balances from multiple credit cards to one low-interest credit card can save you money.

Invoice Factoring during Economic Recovery for Small Businesses

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In today’s tough economy, small business finance can be confusing unless you know the tips for negotiating the best deals, sourcing funding, and most importantly, keeping the cash flow healthy.

A number of financial experts today know that invoice factoring is a proven financial method to stay afloat. Factoring has been around for the last 4,000 years. Over a recent 15-year period, small businesses created some 65 percent of the net new jobs in the private sector, according to a March 2010 report called, “An Analysis of Small Business and Jobs.” (Source: Small Business Administration, Office of Advocacy.)

Probably the most important tip to remain successful in your business is to have sufficient cash flow by planning a budget a year in advance. Remember that outside events will affect your budget planning. For example, what if your main customer goes bankrupt? Or what if another good customer decides to move? Do you know how much of your sales these customers generate? What if two or three of your customers don’t pay your invoice on time?

Invoice factoring is not a lending service – it’s really a discounted purchase. Invoice factoring can help resolve some of these types of issues. It can also make your marketing budget work better, and help you improve operations, increase profits, buy more supplies and pay your bills on time. Whether you are a start up business or one that has been around for many years, companies everywhere in the United States are struggling to make a profit.

Invoice factoring, also known as accounts receivable factoring, provides small to medium-sized business owners with working capital when traditional funding is not available?  such as bank loans or credit. Using invoice factoring is one of the most effective ways for a business to raise working capital for ongoing operations or planned expansion.

The financial practice of factoring dates back to the ancient Roman civilization. Here are some of the other items that factoring resolves:

?· Has no limits and provides fast results
?· Stimulates economic growth, allowing expansion without debt.
?· Provides companies with continuous working capital, increasing their cash flow.
?· Is accessible and flexible.
?· Increases production and sales.

Through careful budget planning, watching expenses and the use of invoice factoring, small businesses can survive and come out of the recent recession on top, which will ultimately create more jobs, and fuel a better economy in the future.

Small Businesses and the Health Care Reform

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The news is buzzing about the health care reform, which our elected officials will be voting on, and many small business owners are worried. The officials are claiming that the $900 billion bill will lower costs, but many people believe it’s about helping everyone except small businesses.

If you are a small business owner, here are some questions you may want to ask in order to consider the bill’s impact on you:
1. Will small businesses really be forced to provide health insurance? This bill is loaded with mandates and really expensive punishments. Yes. The legislation forces small businesses with 50 or more employees to provide health insurance, whether they can afford it or not. The penalties are $2,000 per employee, and Congress is also trying to extend this to all part-time employees.

2. Will small businesses pay more taxes? Yes, there is a new annual $6.7 billion tax on health insurance plans. It falls on health insurance companies based on their market share – the larger an insurer’s market share, the higher its share of the $6.7 billion it has to pay. This insurance companies will need to pass along to their customers, via increased costs per family annually. And it is basically small businesses that this tax will be passed on to, because larger businesses and unions negotiated a deal that exempts them.

3. Will small businesses and their employees be able to keep the insurance coverage they currently have? Small employers now will be forced to buy plans that meet standards determined by the government. For self-employed and small businesses, costs will go up in order to meet these new expensive coverage requirements.

Regardles of what the outcome is insofar as the health care bill, one thing is for sure. Small businesses must be prepared. one way to cover these costs for employees, and avoid penalties, is to begin a program of invoice factoring to cover the costs. Factoring is the one solution that will pay in as little as 24 to 48 hours.

The economic circumstances during this last year of 2009 has been is very tough for small business owners, so these times call for creative solutions to help a small business run smoothly. In order to sustain and grow businesses need some cash on hand. And when outstanding invoices stack up, single invoice factoring, also known as spot factoring, is one tactic that many companies have discovered can help them get by.

Single invoice factoring, or spot factoring, enables companies to get short-term working capital and improve cash flow and grow their businesses. Since most companies don’t get paid immediately for delivered products or services, factoring benefits businesses that do not get paid for 30, 60 or 90 days by advancing up to 90 percent against the company’s invoices. A factoring company like The Interface Financial Group (IFG) purchases selected invoices at a discount. Factoring companies first typically look at the creditworthiness of the client’s customers, and they do not expect to buy 100 percent of a company’s receivables, so there are no minimum or maximum sales volume requirements.

Invoice Factoring and Economic Recovery for Small Businesses

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Small business finance can be confusing unless you know the tips for negotiating the best deals, sourcing funding, and keeping your cash flowing. Many financial experts today know that invoice factoring is a proven financial method to stay afloat. Over a recent 15-year period, small businesses created some 65 percent of the net new jobs in the private sector, according to a March 2010 report called, “An Analysis of Small Business and Jobs.”(Source: Small Business Administration, Office of Advocacy.)

An important tip to remain successful in your business is to plan your budget a year in advance. But always remember that outside events can affect the budget. This is why factoring comes in handy. It’s not a lending service, but a discounted purchase. Invoice factoring can help resolve some of these types of issues. I

Factoring can help your marketing budget work better, improve operations, buy more supplies and increase profits, and helps you pay your bills. Also known as accounts receivable factoring, offes small business owners the working capital to keep growing, when traditional funding like bank loans, or credit, are not available. This method is also one of the most effective ways for a business to raise working capital for expansion.

Through careful budget planning, watching expenses and the use of invoice factoring, small businesses can survive and come out of the recent recession on top.