The auto industry is getting all the attention during this recession but the construction industry is quietly feeling the pain also. You hear a lot about “housing starts,” “sales of new homes” and “sales of existing homes” when analysts are discussing economic indicators but rarely do you hear a company mentioned by name. That’s because there are so many more players in the industry and no single entity receives as much attention or has as much impact as a company like General Motors does for auto industry. But that doesn’t mean that there are not just as many challenges for builders and contractors both large and small.

One of the major challenges facing the construction industry is financing. Credit is tight and there are many builders eager to move forward with projects that can’t get the capital do get a project started or an existing project completed. That is where construction invoice factoring is a necessary and logical alternative.

Read the rest of this entry »

As many people know, owning and operating a successful small business means keeping accurate and timely financial records. Why? Because your financial picture allows you to monitor your small business and determine its successes every month. Good record keeping also provides you with the information you need to evaluate the financial decisions that you’ve made.

Many small business owners think is that they have to hire an outside accountant to run their business. This is not necessarily true. Consider the fact that you could save money if you or someone in your company or family were to keep the books, rather than a costly outside accountant. An accurate set of financial records in-house will minimize costs of paying an accountant and enable you to have more control of your business finances.

Read the rest of this entry »

Medical factoring companies do not offer an existing medical practice a loan. In fact, the opposite is true. The medical office is selling third party account receivable invoices to a medical factoring company. This allows the company to provide immediate cash payment for the total of the invoices to the medical practice provider. Third party billings are insurance companies such as Blue Cross and other like insurance providers. The medical field is one area that is extremely slow in paying invoices and most medical insurance companies can take up to 120 days to pay an invoice. This causes any medical practice to suffer from serious cash flow issues. It changes the face of this situation by taking on the burden of waiting for payment on the outstanding invoices.

The sale of medical third party invoices is a great alternative to create working capital immediately. The financial practice that it offers in financial gains and advantages are enormous. The cash flow that is being generated through the use of a medical factoring company is stable and reliable source. Most medical factoring companies do not set a pre-specified limit of funding. When limits are applied it is direct correlation with the amount of money owed by the third party account receivables. The working capital is immediately released to the medical office allowing finances to be available for purchasing new equipment or simply taking care of payroll responsibilities. Another enormous advantage that the companies offer the medical practice is that there is no collateral requires. Banks and other traditional lending institutions always require collateral against any loans that are given. This ties up the availability of collateral for expensive medical equipment or leasing contracts.

Read the rest of this entry »