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The Federal Assignment of Claims Act defines how lenders or factoring companies can arrange for payments when federal contracts are part of the accounts receivable or loans made to the contractor.

Imagine a scenario in which all of your customers paid their invoices on time. Your cash flow forecast would be 100 percent accurate year round, you could make key business decisions with confidence and your bills would always be paid on time.

More and more companies and startups are discovering the advantages of invoice factoring. Factoring invoices allows businesses to sell their unpaid invoices to a factoring company at a discount in order to generate cash quickly.

Invoice factoring has been around for centuries, going back 4,000 years to Mesopotamia. From medieval businessmen to the modern services used today, factoring has provided countless businesses with the funds they need to succeed.

 
Over the past few years, banks have considerably reduced the number of loans they issue to small businesses. According to The Wall Street Journal, this is due to the weak demand, high costs and tighter lending standards that followed the 2008 economic crisis.

For many years, businesses have been utilizing invoice factoring to secure an immediate solution to their cash flow needs. Through this financing tool, businesses can quickly sell their unpaid invoices and receive an advance of capital.

While a great vision and business plan are crucial, obtaining sufficient funding is one of the most important elements a startup needs to succeed.

If you are a small business owner overwhelmed with a growing stack of outstanding accounts receivable, you are not alone. According to a report by New Sage, 13% of small and medium-sized business’ invoices are paid late.

The relationship between manufacturing companies and their customers is being revolutionized by various marketing and customer experience trends. Gone are the days when word-of-mouth marketing practices and a firm handshake were enough to win new customers and seal the deal.

In a capital-intensive industry like manufacturing, planning is everything.