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Factoring Articles
Factoring Law
The Uniform Commercial Code Committee of the Business Law Section of the State Bar of California (the “Committee”) has been considering issues relating to the individual debtor name provisions of Article 9. In the course of this process, which is ongoing, it has reviewed the approaches regarding individual debtor names set forth in the May 27, 2009 draft of Amendments to Uniform Commercial Code Article 9, with Reporter’s Prefatory Note and Comment (the “Discussion Draft”), that will be under consideration at the annual meeting of the Uniform Law Commission (“ULC”) scheduled for July 14-15,2009.
Competing Claims by Creditors against a Borrowers' Accounts Receivable
The issue involved in this appeal is whether a fully perfected
security interest in an account receivable is superior to the
lien of a subsequent judgment creditor who levied upon that
account prior to default on the part of the debtor in the secured
transaction.
Factoring Federal Government Contracts - Factoring Companies Assist with Change of Name on Federal Government Contracts
As experts in federal government contracting, factoring companies can provide valuable experience in guiding your company through the maze of federal requirements involved in government contracting. Even a procedure as simple as changing your corporate name can become a bureaucratic nightmare if proper guidelines aren't followed. Here's a F.A.R. guideline that illustrates how the federal government can complicate even the simplest of taks.
Factoring Federal Government Contracts - Construction Contract Clauses-Federal Government Contracting
This subpart of F.A.R. prescribes clauses for insertion in solicitations and contracts for (a) construction and (b) dismantling, demolition, or removal of improvements contracts. Provisions and clauses prescribed elsewhere in the Federal Acquisition Regulation (FAR) shall also be used in such solicitations and contracts when the conditions specified in the prescriptions for the provisions and clauses are applicable.
Factoring Federal Government Contracts - Assigning Receivables on Federal R&D Contracts
This F.A.R. part prescribes policies and procedures of special application to research and development (R&D) contracting. Factoring companies assist R & D Contractors with accounts receivable financing issues.
Factoring Federal Government Contracts - Performance-Based Payments on Federal Government Contracts
This subpart of F.A.R. provides policy and procedures for performance-based payments under noncommercial purchases pursuant to F.A.R. Subpart 32.1. Factoring companies assist federal government contractors with financing.
Factoring Federal Government Contracts - Federal Government Contract Funding-Factoring Companies Lead the Way in Government Contracting Expertise
This F.A.R. subpart (a) describes basic requirements for contract funding and (b) prescribes procedures for using limitation of cost or limitation of funds clauses. Detailed acquisition funding requirements are contained in agency fiscal regulations. Factoring companies are experts in federal government contract funding.
Factoring Federal Government Contracts - Factoring Companies and Their Federal Government Contractor Clients May be Liable to Government for Contract Debts
This subpart of F.A.R. prescribes policies and procedures for identifying, collecting, and deferring collection of contract debts (including interest, if applicable) from contractors and if applicable, their factoring companies that may have received overpayments from the federal government.
Factoring Federal Government Contracts - Progress Payments Based on Costs--Federal Government Contracting
This subpart of F.A.R. prescribes policies, procedures, forms, solicitation provisions, and contract clauses for providing contract financing through progress payments based on costs. Factoring companies are experts in federal government contract financing.
Factoring Federal Government Contracts - Advance Payments for Non-Commercial Items in Federal Government Contracting.
This subpart of F.A.R. provides policies and procedures for advance payments on federal prime contracts and subcontracts. Factoring companies are experts in federal government contracting financing.
Factoring Federal Government Contracts - Loan Guarantees for Defense Production
Factoring companies and lenders make funds available to defense contractors.
Factoring Federal Government Contracts - F.A.R. Subpart 32.2-Commercial Item Purchase Financing
Information about commercial item purchase financing in the context of federal government contracting.
Factoring Federal Government Contracts - Federal Government Contract Financing-F.A.R. Section 32.00
As your company's advocate for government contracting, your factoring company can assist you in all aspects of financing of federal government contracts. Federal Acquisition Requirement ("F.A.R.") Section 32.00 prescribes policies and procedures for contract financing and other payment matters.
Factoring Federal Government Contracts - Factoring Companies Assist with Disputes and Appeals on Federal Government Contracts
This section of the Federal Acquisition Requirement ("F.A.R.") deals with the dispute and appeal process. Factoring companies that specialize in factoring federal government contracts have the expertise, as your assignee, to assist you in disputes and appeals.
Factoring Federal Government Contracts - Factoring Companies Can Assist with Protests and Disputes in Federal Government Contracts
As the assignee of your federal government contract, your factoring company can assist you with payment protests and disputes. Federal Acquisition Requirement Subpart 33.1 prescribes policies and procedures for factoring companies to file protests for processing disputes and appeals. To aid the reader in its understanding of this F.A.R. subsection, we have substituted the term "factoring company" for "contractor".
Factoring Federal Government Contracts - Factoring Companies May Receive EFT from Federal Government
The Federal Acquisition Requirement ("F.A.R.") Subpart 32.11 describes the procedures for contract financing and delivery of payments to factoring companies by electronic funds transfer (EFT).
Factoring Companies Have Expertise in Federal Government Contracting
Factoring companies are experts in accounts receivable financing. As such, they have experience in all aspects of credit underwriting, billing, and collection of commercial and federal accounts receivable. Many factoring companies, including Interstate Capital, will act as billing agent and submit invoices on your behalf (in your company's name) to your federal contracting officer or purchasing agent. With factoring companies' special knowledge and understanding of federal contracting law, they can help to expedite payment payments due on your federal government contract. In this article, which discusses prompt payment requirements for federal government contracts, we have substituted the term, "factoring company" for "contractor" to aid in the reader's understanding of the Federal Acquisition Requirements ("F.A.R.") when the factoring company acts as the billing agent for the contractor.
Factoring Federal Government Contracts - Factoring Companies and the Assignment of Claims Act
Factoring Companies can advance funds against the portion of your work completed or goods delivered on federal government contracts and purchase orders. Doing so; however, requires the approval and cooperation of your contracting officer or purchasing agent. Federal Acquisition Requirements ("F.A.R.") spells out the procedures for federal government contractors to assign their payment rights to factoring companies as security for factoring federal government claims, receivables, contracts, and accounts.
Factoring Companies and PACA
Factoring companies that factor the accounts receivable of agricultural product processors, brokers, and distributors may be at risk in the event claims arise by unpaid growers.
Tuftco Case
This case demonstrates the perils factoring companies face when account debtors fail to recognize an assignment of payment rights.
Factoring Federal Government Contracts - Factoring Company Sues U.S. Government
This article points out some of the risks assumed by factoring companies when factoring the accounts receivable of government contractors or government vendors.
My Cash is on Back Order
If slow receivable collection is hampering your company's growth, you will want to read this.
Beware of Factoring Brokers posing as Factoring Companies
Buyer Beware. Many factoring brokers are fraudulently misrepresnting themselves in advertisements as factoring companies. How can you know you are dealing with a principal and not just an intermediary?
DIP Financing--Financing Your Company in Chapter 11
Factoring accounts receivable may be the simplest, least costly, and most flexible financing available for small businesses in Chapter 11.
Interstate Capital Now Services Clients in All 50 U.S. States and Canada
Western U.S. States in which Interstate Capital provides factoring services:
Factoring in Texas
Factoring in California
Factoring in Nevada
Factoring in Oregon
Factoring in Washington
Factoring in Montana
Factoring in Idaho
Factoring in Wyoming
Factoring in Colorado
Factoring in New Mexico
Factoring in Utah
Factoring in Hawaii
Factoring in Alaska
Midwestern U.S. States in which Interstate Capital Provides Factoring Services:
Factoring in Illinois
Factoring in North Dakota
Factoring in South Dakota
Factoring in Nebraska
Factoring in Kansas
Factoring in Michigan
Factoring in Indiana
Factoring in Oklahoma
Factoring in Minnesota
Factoring in Iowa
Factoring in Missouri
Southeastern U.S. States in which Interstate Capital Provides Factoring Services:
Factoring in Arkansas
Factoring in Louisisana
Factoring in Mississippi
Factoring in Alabama
Factoring in Tennessee
Factoring in Kentucky
Factoring in Florida
Factoring in Georgia
Factoring in South Carolina
Factoring in North Carolina
Factoring in Virginia
Factoring in West Virginia
Northeastern U.S. States in which Interstate Capital provides factoring:
Factoring in Ohio
Factoring in Maryland
Factoring in Pennsylvania
Factoring in New York
Factoring in New Jersey
Factoring in Vermont
Factoring in Delaware
Factoring in Rhode Island
Factoring in Massachusetts
Factoring in Connecticutt
Factoring in Maine
Factoring in New Hampshire
Interstate Capital Announces 0.59% Factoring for Staffing Companies
Index: Factoring for Temporary Staffing Services, Factoring for IT Staffing Services, Factoring for Nurse Staffing Services, Factoring for Travel Nurse Staffing Services, Factoring for Light Industrial Temporary Staffing Services, Factoring for Office/Clerical Temporary Staffing Services, Factoring for Professional Temporary Help Services
What Happened to My Bank Line?
If your bank pulled your line of credit, you're not alone.
Factoring for Temporary Staffing Services
Interstate Capital is THE factoring specialist in ALL aspects of the temporary help industry.
Factoring for Small Trucking Fleets
Small Fleets Receive Cash Advances Against Their Freight Bills Keeps Diesel in the Tank
Factoring in Canada
Interstate Capital entered the Canadian factoring market in January 2004 by signing clients in Saskatoon, Toronto, Vancouver and Calgary. By fall of 2007, Interstate Capital had enough critical mass in Canada to incorporate a new subsidiary, ICC Canada, Ltd., which opened its first office in the Toronto suburb of Mississauga.
Factoring and Tax Liens
It is not uncommon for companies with tax problems to seek out factoring arrangements. Most traditional lenders perform lien searches before the loan initiation process gets too far, and they tend to view the existence of federal tax liens very negatively-- as well they should. A tax lien or a history of tax liens speaks to the financial condition of a business and its ability to pay its creditors. Traditional lenders want to see borrowers that are free of tax liens, judgements and other derogatory information in their credit report.
Factoring Fees Comparison
With so many factoring options available, it is difficult to compare various proposals. There are about as many ways to quote factoring fees as there are stars in the sky, so we can start with how to compare the obvious costs: factoring rates.
Factoring with 100% Advance Rate
We are often asked if we can advance 100% against invoices. If you shop around on the Internet, you are bound to find some factoring companies advertising "up to 100% advance rates." Is this too good to be true?
The Small Business Administration & Factoring: A Perfect Match
If your company has obtained a loan backed by a Small Business Administration guaranty or a direct SBA loan, you more than likely were required to provide the lender with a "blanket lien" on your company's assets. The term "blanket lien" is used because the lien covers all your company's assets, including existing and future accounts receivable.
Interstate Capital Corp. Fuel Card Program
Our fuel card program features discounted access to the O-T-R Network of 10,000-plus travel centers and truck stops.
When you apply for an Interstate Capital fuel card through CSI Global-Fleet, your business will immediately benefit from program savings.
Why have banks stopped lending?
If your company has a revolving line of credit at a bank, credit union or other federally insured financial institution, you may find that renewing that credit is not as easy as it used to be. In fact, you may have already heard from your bank that it wants to reduce your line of credit or that it is requiring more collateral. Why won't your bank do today what they were willing to do last year?
Non-Recourse Factoring
To understand the concept behind non-recourse factoring, one must first understand the history of factoring. Imagine you are a tea merchant in Southampton, England, in 1780. The colonies in America are now a sovereign nation, and the British are emigrating to the states in record numbers, creating a strong demand for English tea. Distributors start popping up in places like Boston, New York and Wilmington. You want to sell your tea to distributors in the new country, but this is a tremendous risk. You need to fill a boat with your commodity, sail it to America, unload your tea in Boston Harbor, and then hope that you receive payment from the American distributor at some future date.
Know Your Factoring Company Before You Start
Usually, managers of a good factoring company will be entrepreneurs, like you. In some cases, you can have direct access to the owner of the factoring company, who can make decisions for you at the drop of a hat. But the larger the organization, the less likely it is you will receive the attention you deserve.
Your Factoring Company as your Credit Department
A common question we hear from companies looking to factor is: "I've heard factoring is expensive-- how much is a factoring company going to cost me?" When evaluating factoring companies, most business owners don't see the factoring company as a resource for reducing costs. While factoring companies charge a fee, they also provide key services that should offset much of that cost. Perhaps the question should be, "How much is a factoring company going to SAVE me?"
Factoring and Credit Policy
Establishing and following a sound credit policy can help your business navigate the minefield of business bankruptcies. The object of a credit policy is to minimize the chances that any single bad debt write-off negatively impacts your business.
Non-Recourse Factoring Secrets
When fully explained and understood, non-recourse factoring can be an extraordinarily beneficial tool-- the key words being "fully explained and understood." Non-recourse factoring costs more than recourse factoring, which leads clients to believe that more expense will equate to better protection. The problem is that many clients simply don't understand exactly what they're getting.
Vendor Guaranties in Combination with Factoring
Occasionally, we are asked if factoring companies can issue letters of credit. The answer to that question is of course. Anybody can issue a letter of credit. The better question is who would accept a letter of credit written by a factor? Before answering that question, let's discuss letters of credit in a little more detail.
Specialty Factoring
If you require hand surgery, you probably wouldn't go to a foot specialist. So if you own a trucking business or a temporary help service, you probably wouldn't choose a factoring company that specializes in construction receivables.
Lesson Learned: Borrow against Fixed Assets; Factor Your Account
Through the '90s and the early part of the 21st century, it became common practice for small and mid-sized business owners to seek financing for their accounts receivable wherever they thought they could get it cheapest. It is important to watch your pennies, but whatever happened to "you get what you pay for?"
Factoring and Personal Bankruptcy
One of the most common questions our applicants ask is, "If I have bad personal credit but my company's credit is fine, will my company qualify for factoring?"
Factoring and Judgments
One of the most common questions our applicants ask is, "If I have bad personal credit but my company's credit is fine, will my company qualify for factoring?"
Factoring and Federal Tax Liens
One of the most common questions our applicants ask is, "If I have bad personal credit but my company's credit is fine, will my company qualify for factoring?"
Freight Broker Factoring
Freight broker factoring is a sub-specialty of transportation factoring. Few factoring companies have the human resources, practical experience, and expertise in freight brokering to provide the services freight brokers require. Interstate Capital not only specializes in factoring for freight brokers, but it has developed its own proprietary online system called FreightPayableSystems.com (sm), or "FPS" for short.
Estimating the Cost of Factoring
Although there are numerous ways to quote factoring rates, they all boil down to dollars and cents. There are several elements to take into consideration in order to accurately estimate the cost of factoring.
Factoring Companies: Accounts Receivable Specialists
Many business owners ask why banks are unwilling to lend to companies that have good-quality accounts receivable, but that lack other collateral, such as real estate, equipment and inventory. Historically, banks were not the places to go if you wanted to borrow against the value of accounts receivable, particularly if you had no additional collateral.
Factoring and Check Clearance Days
Lately, we've been running into some competing proposals from other factoring companies that advertise programs with cleverly disguised names and complex fee calculations. In their marketing materials, they claim "better than factoring" or "don't factor." But wait a minute -- if your factoring company doesn't want you to think they're factoring, what do they want you to think?
Factoring with Interstate Capital
Taking advantage of our factoring services is quick and easy. An Interstate Capital factoring account manager will get you started. We will then assign you a factoring collection specialist who, together with your account manager, will complete your Interstate Capital customer service team.
Is Your Factoring Company Well Capitalized?
Is your factoring company profitable and well capitalized? Better hope so.
With so many factoring options available, how do you know which factoring company is the best fit? On the surface, it may appear to be an unimportant decision; after all, money is money. But the reality is that now more than ever, the financial future of your family and your business rests with making the right choice.