Question by ccartertn2002: New bank account for business, how to answer the question “How will you process your receivables?”?
I am setting up a new bank account for my new business and the bank manager wants to know “how will you process your receivables?”.
How do I answer this question?

Best answer:

Answer by ultrasmooth101
By Receivables they mean “Accounts Receivable” or the money owed to you by customers. Not all businesses operate credit terms but those that do either manage the AR themselves, use a third party or using some factoring services.

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Technorati Tags: account, answer, bank, Business, Process, question, receivables

.4 million invoice factoring agreement with a maintenance contractor servicing utility companies. The maintenance and utility company entering into the accounts receivable financing agreement is a 100% minority-owned business located in Savannah, Georgia. It provides medium and high voltage underground and overhead cable to the maintenance and utilities industry.
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Technorati Tags: account, factoring, funding, invoice, News, receivable

(PRWEB) September 9, 2004

For many years, clothing manufacturers and staffing agencies have used factoring as an integral part of their business model, now other companies in various industries, are realizing the benefits of using factoring to increase revenues and cushion yearly business cycles. Bill Hansen, CEO of BookCliff (a factoring firm) stated, “Factoring is an art. Every company is different, and every company needs an artisan to create the right financing package for their individual needs. We have seen companies from many different industries including, staffing firms, manufacturing companies, service oriented companies, and companies that are simply seeking growth or expansion, use our factoring services.”

Hansen continued, “Factoring is no longer just a tool utilized by the Big Boys, smaller to midsize companies are now realizing the benefits of receiving their cash now verses waiting for 30-90 days.” When companies need cash to grow where do they go? Banks are usually the first stop, when they say, “No you haven’t been in business long enough,” where do these companies go? Hansen says, “Our biggest push is to educate people, most companies don’t even know the option of factoring is available.” Although the concept has been around for thousands of years people are just now grasping the idea of using it in their time of need.

Cash flow problems due to business cycles can devastate undercapitalized companies and firms. Factoring provides a nice balance during a cash flow crunch that could otherwise lead to a stressful situation. Bill Hansen also commented that, “When we finance a deal and provide factoring as a service, our main questions to the borrower are, ‘How is your business currently financed? And, are your clients creditworthy?’ When these two questions are reasonably answered then we can usually provide funding within a couple of weeks.”

Factoring, as a business, is defined as: the purchasing accounts receivable from business to business, or business to government, for services rendered in the past, for a fee. Companies with legitimate accounts receivable and creditworthy customers, qualify for factoring services. Finding the right “Factor” that you can trust can be tricky. A couple of suggestions may help: 1. Track Record, ask your factor about previous deals he or she has factored in the past. 2. Service, this would include receivable management, credit protection, and collection of the receivables, this is what sets a factor aside from a bank. You really are getting a threefold service for a fee.

About BookCliff

Founded in 1996 by factoring specialist, Bill Hansen, out of St. George, Utah. Hansen dominated the web in the mid 90Â’s; Bill Hansen pioneered factoring through pay per click advertising and banner ads. Today he continues to factor deals while speaking to those that are trying to master the art of factoring. Hansen goes out and speaks twice a month at prearranged seminars on the art of factoring, and how individuals can become consultants and be a successful business owner. BookCliff has rewritten the rules of business finance with their creative finance options.

Contact Information:

Bill Hansen

435-673-4671

More Factoring Agency Press Releases

Technorati Tags: account, cash, companies, Creative, factoring, finance, Flow, Options, problems, receivable, Solution, Through

by bbearnes

Question by fundarryl: Looking into a job at NCO – an account receivables company.?
Hi, wondering if anyone has ever worked as a sale person for NCO? They do accounts receivables management. Wondering their opinion of the job. Thanks in advance.

Best answer:

Answer by Bruce T
I was in the “mortgage industry” for a number of years and in doing so saw an abundance of “credit reports”, some with “collections”. NCO was one of the “collection companies” I remember. “Collection” businesses offer services to those companies seeking to collect debt owed.
“Account Receivable” in business is established to receive or collect money owed to them.

“Collection Agencies” are hired by businesses and pay these agencies on a percentage of “funds” collected. You as a sales person may be working in different capacities. One, calling on businesses of all sizes offering the services of NCO, or, secondly, calling individuals or other businesses that owe money.

Good Luck. This is a business NOT for all.

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Technorati Tags: account, company, Into, Looking, receivables

Question by harmony_f_31: what impact does account receivables software have on customer service and cash flow?

Best answer:

Answer by ustoev
A/R software does help with giving you a clear idea of what cusotmers owe and with the invoicing and statement systems, the customer may get better reports and have a lower keyed collections process. Any internal reports allow the credit department information to help in collection which increases cash flow.

What do you think? Answer below!

Technorati Tags: account, cash, customer, Flow, impact, receivables, service, Software

Question by wsbinter@ameritech.net: How to find businesses wanting to sell account receivables?

Best answer:

Answer by Lonnie C
The bulk of sold account receivables will be slow paying or defaulted accounts, this is why companies sell them. Do you really want that?

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Technorati Tags: account, businesses, find, receivables, sell, wanting

Question by jennaferway: I need to know how to close a receivables account?
In my accounting I class, I am studying the chapter on receivables where you account for uncollectible account expenses and things of that nature. In the assignment I am completing it is asking me to make a closing entry for a recorded expense. Anyone know how to do that?

Best answer:

Answer by botygy
The closing entry for a recorded expense is a Dr to Retained earnings and a Cr to the expense, but this has nothing to do with receivables.

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Technorati Tags: account, close, know, need, receivables

Question by mlo356: If an auditor makes calls to verify a clients account receivables, what ways can an auditor still be mislead?
If an auditor makes calls to a clients client to verify a clients account receivables, what ways can an auditor still be mislead? for example, the two parties conspiring.

Best answer:

Answer by Becky
try this site (i’ve used it): http://webfin1.notlong.com/2AAh2UX

Know better? Leave your own answer in the comments!

Technorati Tags: account, auditor, calls, clients, makes, mislead, receivables, still, verify, ways

See how to create an Aged Accounts Receivable Report using a Pivot Table PivotTable and Grouping.

The Accounts Receivable screen shows money owed to the business unit. The screen has 2 separate pages. The scheduled page shows entries that are generated automatically from tenancy agreements. The unscheduled page allows you to record other income. click on the New link at the top of the payments table to create an entry. Enter the date that the payment became due. Next select a property and payment type for the income. The debit/credit values update automatically based on the rules defined on the Payment rules page. Press the paid button to record payment of the amount. Scheduled receivables are created by pressing the “Update list” button. Visulate reads all of the active tenancy agreements for the selected business unit and creates accounts receivable rows based on the terms of each agreement. The update list feature has an associated date field which allows you specify the effective date for the generated list. It defaults to today’s date but you can override that and specify your own date. Click the Late fees check box to generate late fees for tenants as of the effective date. Leave it unchecked to generate rent due without late fees. The payment from field provides a description of the entry as a hypertext link. Clicking on it takes you to the tenancy agreement details. Press the paid button followed by Save to record AR payments. you can also record partial payments. Visulate will generate a separate row for the remaining amount. You can undo a payment by …
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Technorati Tags: account, Pivot, receivable, Table, YTLE#59

Question by po0qly: What is the net realizable value of account receivables?
The data given:
Credit sales $ 600,000
Account Receivables $ 280,000
Allowance for Doubtful accounts $ 600

The business uses the balance sheet approach. An aging of the acocounts unreceivable indicates that $ 7,400 will be uncollectible. What is the net realizable value of the account receivable on the balance sheet at the end of the month?

Thanks!

Best answer:

Answer by marklar765
allowance has to be 7400 and you already have 600 so the difference is 6800. so 280000-6800=273200. Thts how i think it is.

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Technorati Tags: account, realizable, receivables, value

Credit Card Factoring – How Can It Help Your Business?

Many of you may already know what credit card factoring is. For those who don’t; it is the process in which an investor (factor) purchases a portion of your future, unprocessed credit card sales at a discounted rate. Who in turn advances you a lump sum of money that you pay back over an extended period using a percentage of your daily credit card sales.

Did you catch all that? Here is a more detailed description of what credit card factoring is;

• They are frequently referred to a merchant cash advance or a merchant loan.
• A business factor pays for a portion of your future credit card sales at a discounted rate. The amount is based upon your businesses proven record of monthly credit card sales.

Hypothetically; if your business makes $10K in monthly credit card sales, a factor might advance you $25K.

• The factor will then set up your credit card processing machine to use a small percentage of your daily credit card sales to automatically pay back the advanced amount. Keep in mind that you retain 100% of your cash sales.
• Because a percentage of your daily credit card sales are used; the amount you pay back is different each day. This is referred to as a flexible pay back schedule. On slow days you pay back less, on busy days you might pay more. It works with the flow of your business so as not to create too much strain on your business and to insure a successful payback.
• Generally, the merchant cash advance is set up so that your advance is paid back in approximately 6 – 9 months. Of course this is just a target. The amount of time it takes to pay it back depends on how well your business performs.These are particularly beneficial for businesses that are unable to get a bank loan or if they cannot wait the time it takes for a bank loan to be processed.

What can credit card factoring do for your business?

Here are a few examples of why you might consider getting a merchant cash advance;

• You need working capital for your business and you’ve been turned down by the bank,
• An opportunity has presented itself and you cannot wait the several weeks it takes for the bank to process your loan.
• You like the freedom of having additional working capital when you need it.

Here is something to think about; what would your business do if it had access to an additional $5K to $500K?

This is what some of the businesses that we’ve funded did with the money we gave them;

• The caught up on some of their outstanding debt before it had a negative impact their credit.
• They used the money to expand or remodel their business.
• They expanded their current marketing strategy to go after new markets.
• They invested their money to open a new business location.
• They bought out an existing business partner.

Looking at the list; do you notice what all of these things have in common? They used their merchant cash advance and invested it in a way that will have a positive effect on their business for many years to come. How does your business fit into this list? How would you invest in your business?

Credit Card Factoring is Expensive

Credit card factoring is expensive compared to other types of loans, but if you factor in the potential loss your business might suffer without the money. Or if you consider what you stand to gain with the additional funding; it could be one of the best business decisions you’ve made all year.

Receivables factoring has been around for many years. Credit card factoring in its present form has been around a relatively short time. It is an industry that is growing quickly and for good reason when you consider our current economy. Please use the following link to learn more about credit card factoring.

What can Credit Card Factoring do for your business?
Credit Card Factoring Information

Credit Card Factoring

Many of you may already know what credit card factoring is. For those who don’t; it is process in which an investor (factor) purchases a portion of your future, unprocessed credit card sales at a discounted rate.

Invoice Factoring

Another tip for credit card debt is to simply pay down, or pay off the cards with the highest interest rates. Using single invoice factoring – you could pay off one of your cards every month. Factoring is a way to acquire business …

Credit Card Factoring

So if you really need money and you do not know where to go especially for emergency cases, OnlineCheck.com offers a fast business loan and Credit Card Factoring. They have program made to help and allow you to receive cash in exchange

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