Archive for May, 2011
Selling Steel Reinforcing Bars (Rebar)? Lear How Factoring Can Help You Grow
Posted by admin in news article on May 31, 2011
Companies that sell reinforcing steel bars (or concrete bars – also known as Rebar) have seen a boom in recent years. Many cities have seen a surge in residential and commercial real estate projects, which in turn has increased the demand for Rebar.
Companies that sell, cut and bend Rebar have profited nicely from this growth – however, they have also faced a common problem in the industry. The problem is tight cash flow. Basically, they sell the Rebar to customers (e.g. builders, contractors) at good prices. These customers usually pay their invoices in 30 to 60 days. In the meantime, the Rebar company must wait to get paid while covering all supplier, payroll and rent expenses. Many times, this is not sustainable. Either the company stops growing, or worse, it starts missing key supplier or employee payments.
Factoring Receivables – Working Capital For Growing Businesses
Posted by admin in news article on May 31, 2011
If you sell goods/services to other businesses or to the government, then you know that commonly you have to wait 30 to 60 days to get paid for your services. Unless your business is well capitalized, waiting to get paid can drain your working capital and affect your business.
Lack of working capital can prevent you from making new sales, forcing you to sentd customers to your competition. What is worse, if the problem is not corrected, it can affect you ability to pay employees or suppliers. Missing payroll and supplier payments is a sure indication that a business is in serious financial troubles. The solution to this problem is, of course, simple. You just need to get business financing.
Medical Factoring: Business Financing for Medical Professionals
Posted by admin in Business Products & Services on May 31, 2011
Doctors and professionals that bill insurance, HMO’s or Medicare/Medicaid know how the payment cycle of the industry works. Basically, hurry up and wait, is the call of the day. It is not uncommon for a medical professional to send a bill to an insurance company and have to wait 30, 90 or even 120 days before they get paid. In the meantime, the office needs to pay employees and suppliers.
Unless the medical office has a large cash reserve, it is likely to run into problems. Sooner or later, it may run out of cash. One alternative is to go to the bank to obtain a business loan or similar product. That works, sometimes. But banks can be hard to work with and seldom increase loans after giving them. What happens if your medical office keeps growing and needs more cash?