When the Bank Says NO!

Factoring has been practiced for centuries. The Romans sold promissory notes at a discount as did the Phoenicians. The word "factor" comes from Latin, the language of Rome. It means "to do" or "to make." The Pilgrim's journeys to America were financed by advances from a Factor who provided the funds to pay for the journey. The Pilgrims repaid the money with earnings from America. Factoring to this day is an extremely common business practice in Europe whereas many American business men have never heard of it.

Factoring is the selling of your accounts receivable for cash versus waiting 30-60 or 90 days to be paid by your customer. When you provide a Factoring company with copies of your invoices, the Factoring Company uses your invoices to make a loan to your company. It is a simple process and can be automated after the first transaction. Credit is not an issue when providing Accounts Receivable Loans or Financing. The Financial Companies looks at the credit history of the vendor not yours! This is exceptional good for small to medium size business that have been in business for less then two years.

My first experience with Factoring came when one of my Tax clients ending up with a sizable Tax liability one year. He ran a small Trucking company and had very few tax problems in the pass. However, because of a sudden burst in growth he was doing 2 to 3 times more business in the last half of the year. Because he did not have sufficient tax write offs, his tax liability really hit hard. He was actually having serious cash flow problems because of unplanned growth!

We talked about the situation, his taxes were completed and because he had rented a couple of trucks to keep up with the work load, we were able to use the rental cost as a write off. But there was still the self-employment tax and there was no doubt he had an increase in business income.

I didn't say anything, but I was worried about his payment for the Tax preparation. I knew he was having cash flow problems and the tax bill did not help. Then he told me about the $30,000 worth of Invoices. Because the invoices had not been paid they were not included in his income for that year so I had no idea that he had invoices in that amount. In fact the invoices where crumbles up and scattered over his desk.

I went on the Internet and started to research "invoices". I had never really understood Factoring before that time, but I had heard of it. We did not factor my client's Invoices because he called the company he worked with, explained the situation and they paid him 50% of the Invoice immediately and the balance shortly after.

I had already researched "Factoring" or Accounts Receivable Financing and being a Tax person I was always looking for ways to help my clients pay their taxes as soon as possible, especially if they owed employee taxes.

I put an ad online and within days a CPA called. He had a client who imported culinary products from overseas. They needed to factor a fairly large invoice. I called one of the Factoring Companies explained the situation. The Factoring Company arranged for his company to do a Purchase Order from his supplier overseas. Once the Purchase Order was in place, we factored the Invoice. The client received over 90% of the Invoice amount within days. He then went on to repeat the deal 3 or 4 more times!

Purchase Order Funding is slightly harder to get then Accounts Receivable Financing, however, PO Funding is very helpful for Business who makes large purchases and resells to a third party. For more information on Purchase Order Funding and the advantages of Factoring go to http://www/taxeswilltravel.com

Cassandra Ingraham is a Licensed Tax Practitioner in the state of California. Her Tax Business specializes in Taxes, 100% financing for Credit Problem Clients (in 45 States) and Invoice Factoring. You can find more information at http://www.taxeswilltravel.com

---

Secured Loans Tips

Here are some useful secured loans tips. Secured loans enable... Read More

Holiday Loans Can Expand The Horizon Of What You See

Why do kids get all the breaks? Winter-weary adults, fed... Read More

Is a Microloan Right for You?

If you've been tossing around an idea for a small... Read More

Filling Out The Loan Application

1. Property information. The application begins with a section on... Read More

Should You Get A Pay Check Advance?

At some point in your working life, you may find... Read More

Best Car Loan Rates - Tips To Getting a Low Auto Loan Rate Online

Online car loan shopping practically guarantees that you are getting... Read More

Guide to Bad Credit Loans

Here is a useful guide to Bad Credit loans. Bad... Read More

Bad Credit Secured Personal Loans are Like Desserts-Last Course/Best Recourse for Impaired Credit

Plato said, 'We can easily forgive a child who is... Read More

Loans For Unemployed - when your personal economy slumps during difficult times

The latest IDS figures for unemployment the claimant count measure... Read More

No Faxing Hassle-Free Payday Loans Can Be Yours

No faxing payday loans are the wave of the future.... Read More

Should You Ever Take a Payday Loan?

Payday loans have many names -- cash advances, signature loans... Read More

Do Payday Loans Deserve a Bad Rap?

We have all heard the stories about cash advance lenders... Read More

Loan Basics

There is more than one type of loan. Depending upon... Read More

Bad Credit Wedding Loans in Case You want to Race Towards the Altar with Bad Credit

So you are engaged. Congratulations. It was not easy. What?... Read More

See What Your Home is Worth

If you thought your home is worth nothing except for... Read More

Personal Loans for Unemployed ? Liberating You from the Tangles of Unemployment

Like most of the contingencies (the after effects of unemployment... Read More

Why Choose a Homeowner Loan?

Outlined below are some of the reasons for choosing a... Read More

Why Bank Overdrafts May Be a Bad Deal For You

Many banks actively encourage their clients with low balances to... Read More

It Only Takes a Few Simple Steps To Avoid Student Loan Debt

Student loan debt is a problem that affects many former... Read More

Applying for a Payday or Cash Advance Loan Online

Applying for a payday loan online is a quick and... Read More

How to Make Sure You Become a Profitable Trader

Regardless of your trading style; day trading, swing trading, or... Read More

Why Starve Your Needs When Payday Loans are there to Gratify Them

The long awaited paycheque is finally here. However, the reverie... Read More

Secured Loans vs. Unsecured Loans ? Choosing Between the Two Diverse Ends

Often in our search for finance options, we are led... Read More

The Wonders of Compound Interest

Albert Einstein called compound interest "the greatest invention of all... Read More

To Be Mr. and Mrs. Sometimes You Need Wedding Loans

The conception of wedding has changed over the years. Its... Read More

Government Loans for Beginners

Government loans are those that the government of a country... Read More

A Brief Look At Various Types of Loans Available

A Brief Look At Loans "Innovative financial packaging" is how... Read More

Useful Tips on Personal Loans

Here are some useful tips on Personal loans. You can... Read More

Car Loans for People With Bad Credit

Car loans for people with bad credit are readily available... Read More

What is a Title Loan?

A title loan is a loan of money secured by... Read More

Payday Loan Qualifications - What to Expect

Payday loan qualifications are different from other types of short-term... Read More

Do You Qualify for a Loan?

Like most people, you will probably wait until submitting a... Read More

Getting the Best Auto Loan Rates

Getting a good auto loan rate is not luck, but... Read More