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Understand contracts & notifications when invoice factoring

By February 25, 2019 No Comments

Invoice factoring has been around for hundreds of years and is used as an effective financial tool in specific industries like staffing companies, public relations, professional services, marketing, technology, wholesale, and manufacturing.

With the advent of the Internet and changes that are fair to more financial businesses than just the banks, invoice factoring has emerged as a smart way for small businesses to increase their cash flow without “selling the farm”.

At All Merchant Funding we make the application process simple and straightforward. If 24-hour invoice factoring approvals with a streamlined funding process is what you need for your business now, All Merchant Funding is for you. All we need is a completed application (APPLY ONLINE HERE) and the three most recent business bank statements to get an offer!

We also provide other funding solutions like a business line of credit, merchant cash advance, cash flow loans, merchant funding, term loans, equipment financing, and equipment loans.

Following are two key points to remember when researching invoice factoring companies in Virginia Beach, Norfolk, Chesapeake, Newport News, Hampton, Portsmouth, Suffolk, Yorktown, Williamsburg, Smithfield, Isle of Wight, Poquoson, Eastern Shore, and Hampton Roads.

DO NOT GET TRAPPED IN CONTRACTS
Many traditional factoring companies will try to lock you into long-term contracts. This may be a good deal for your small business if based on terms that clearly would allow you to save on financing costs.
We encourage you to read the fine print and ask questions. The more questions the better. Peel the onion back to make sure you are making a fair transaction. Make sure you do not end up with a long-term contract that will hurt, not help, your cash flow. It happens!

In some cases, these contracts feature ridiculous cancellation fees. Others require you to submit a minimum number of invoices for factoring, which means you are paying for financing that you do not need.

UNDERSTAND WHAT ‘NOTIFICATION’ MEANS
Many factoring companies serving Virginia Beach, Norfolk, Chesapeake, Newport News, Hampton, Portsmouth, Suffolk, Yorktown, Williamsburg, Smithfield, Isle of Wight, Poquoson, Eastern Shore, and Hampton Roads operate on a notification basis, which means they notify your customers when you sell your invoices. The factoring companies also require that the funds be routed to an account in their name instead of yours. This is sometimes an issue in the beginning of a relationship with the factoring company as well as your clients.

Make sure you clearly understand how this financing arrangement is being communicated to your customers. Include yourself in the process and do not wing it. If you are not managing it, you are just letting it happen, and that is never a good idea. Once your clients have become familiar and comfortable with how the payment process works, you can ease up.

IF YOU ARE LOOKING FOR a local company that does invoice factoring as well as a honest partner to help grow your business, please contact us at (800) 628-1001 or funding@allmerchantfunding.com.  Thank you!

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All Factoring Companies Are Not Equal
Our company is located in Chesapeake and serves businesses in Virginia Beach, Norfolk, Chesapeake, Newport News, Hampton, Portsmouth, Suffolk, Yorktown, Williamsburg, Smithfield, Isle of Wight, Poquoson, and the Eastern Shore.  Clients count on us for many types of financing like invoice factoring, equipment financing, equipment loans, merchant funding, small business loans, a business line of credit, merchant cash advance, cash flow loans, and term loans. If 24-hour approvals with a streamlined funding process is what you need to grow your business, All Merchant Funding is for you.

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