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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.

Expanding your business can be one of the most rewarding experiences, and the most challenging. The only way for manufacturing businesses to stay ahead of competitors in today’s ever-changing environment is to embrace change.

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.

At some point, every business owner will face the challenging situation where more money is flowing out of their business than is flowing in. This cash flow shortage can quickly make it difficult to cover payroll and day-to-day operating expenses, not to mention rapid growth and expansion needs.

Periods of growth can come and go quickly and the consumer’s needs and expectations shift. Trends can change from one month to the next.

 
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.