Sorry for continuing the OT thread. I just thought this might be useful...
Gunther Birznieks [mailto:[EMAIL PROTECTED]] wrote: > By the way, if you are really working for a bank and cashflow is an issue > for you in 60 days you can also ask the bank what business banking services > they offer. One popular service with small businesses who have large > companies working for them is invoice factoring which allows you to sell > your invoice (if your company passes a credit check) to the bank for > something like 80% of the face value of the account and then when the bank > collects the invoice you get the rest minus interest and commissions. Factoring invoices can be a wonderful thing. May I recommend this company: http://www.facteon.com/ You need: (a) to pass a UCC search clean, (b) a credit worthy customer, (c) a contract with your customer, (d) and your customer to agree that the invoice is valid. Then you can get a good chunk of the money up front and more on payment of the invoice by the customer. Your fee depends on how long it takes your customer to pay. If they never pay, you keep the up-front payment and they book it as a loss. > It's unlikely that they would grant the same credit with a 1-man company > though. And I think they don't like dealing with service businesses. It's > usually more for dealing with suppliers with real inventory where the main > thing that can go wrong with an invoice is a pricing dispute over a line > item of widgets I suspect. >From what I know, Factelon works with one man companies and service industries. It's more important that your customer be creditworthy than you, since your customer must agree that the invoice is valid for it to be factored. David
