New Articles

Is Invoice Factoring Right for Your Business?

Companies should consider invoice factoring for their shipments of export cargo and import cargo in international trade.

Is Invoice Factoring Right for Your Business?

Invoice factoring—also called accounts receivable financing—is the process of selling your outstanding customer invoices that are due and payable to a third-party firm. This firm, called the factor, pays you cash right now in exchange for the right to collect payment from your customer at a future date, plus a fee.

But what’s the benefit of this process? Why would a business want to sell their outstanding customer invoices? Well, as many business owners know, customer invoices are rarely paid within a short amount of time. In fact, most invoices are paid within 30, 60, or 90 days.

For business owners who need to handle ongoing expenses like rent, utilities, and employee paychecks on a weekly, bi-weekly, or monthly basis, these lengthy timeframes for customer invoice payments can cause a lot of stress.

Accounts receivable financing allows businesses to secure the cash they need now, without waiting 30 to 90 days for invoice payment. That means reduced stress when dealing with slow-paying customers, as well as the flexibility to use your money exactly when you need it. The best part? Invoice factoring doesn’t include the risks and complications of traditional bank loans, and adds no liability to your business’s balance sheet.

The invoice factoring process can be summed up in 10 easy-to-follow steps, which are broken down in the infographic below. The infographic also contains key terminology, primary benefits, and a real-life example that outlines how accounts receivable financing works.

Wondering if invoice factoring is the right cash flow management solution for your business? Check out the infographic below to start learning more about this successful business funding solution.

Infographic courtesy of MP Star Financial.

shipments of export cargo and import cargo in international trade.

Fifteen Impressive Facts About U.S. Manufacturing

There’s no denying that manufacturing has had a significant and lasting impact on the U.S. economy, and economists agree that the U.S. owes much of its powerhouse status to the manufacturing sector. But to exactly what extent has manufacturing really shaped modern America?

For one thing, we wouldn’t have the tools, technologies or goods that consumers and companies use everyday without manufacturing. Simply defined, manufacturing is the process of transforming raw materials into new products, using mechanical, physical or chemical means. That means the production of everyday items and products like cars, iPhones, and furniture relies on manufacturing, as does the production of machinery and infrastructure that all businesses use to make money.

Without manufacturing, sectors like agriculture, construction and health care wouldn’t have the tools and technologies they need to be profitable and to serve their markets. In that sense, manufacturing really supports the entire U.S. economy in a multitude of important ways.

Of course, there are plenty of other ways that manufacturers have had an impact on the nation, too. The U.S. manufacturing sector contributes trillions of dollars to the total economy, making this single sector economically larger than many individual countries. Manufacturing also creates millions of jobs for workers around the nation, and the need for manufacturing workers is only continuing to grow.

The best part? Manufacturing is becoming more and more productive year after year, thanks to the significant dollar amount it funnels into research and development. In fact, the manufacturing sector is one of the key industries that drives R&D in the U.S.

Still not convinced that manufacturing is the key to the United States’ success? Check out the infographic below to dive into the nitty gritty numbers and statistics behind these 15 impressive facts about U.S. manufacturing.

USA Manufacturing Facts

Infographic courtesy of MP Star Financial