Acquisitions and Mergers, Hooray!
Have you ever caught yourself enjoying how well things are going with your best customer? Then out of the blue, you read a headline stating they have just merged with another company or even worse been acquired? Suddenly, your receivables payments stop coming and your business cash flow starts to suffer. Why? Because anytime you […]
The Tax Man Cometh
Every year in March we receive cash flow help calls from firms who failed to make estimated tax payments. When the tax bill comes and a large unexpected payment must be made to the IRS a hit to financing cash flow becomes inevitable. The same goes for paying your 940/941 payroll taxes. When companies face […]
Your Account Debtor is Facing a Company-Wide Software Change
This case has two parts to it. First, out of the blue, your debtor suddenly stops making invoice payments to you. You call to collect on your accounts receivable and you are told the company is in the middle of a companywide software change. They kindly ask for your patience as they struggle through making […]
Why should businesses sell their receivables?
The answer is simple: A business should sell its accounts receivable to improve their cash flow. The unfortunate truth of every business is that there are going to be periods in which cash flow becomes a problem for a variety of reasons which can contribute to the failure of a business. Poor cash flow does […]
Advantages of Selling Accounts Receivable
An online article published by the Houston Chronicle analyzes the many advantages businesses gain by selling their accounts receivable to a third party that will collect the payments for a fee in a process called factoring. The article narrows down the advantages into four separate factors that make it easy for a business to decide if factoring receivables is the best option. Cash Flow The main […]
