Archive for the ‘Invoice Purchasing’ Category

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Does anyone know of any sites/companies that offer Invoice Purchasing/Bill to Invoice?

Sunday, August 2nd, 2009
Invoice Purchasing
rah_abc asked:


Looking for companies that will sell to another company and offer Invoice purchasing or bill to invoice or have net terms of 10 to 30 days after receipt of merchandise.
Looking for all types of goods/products.

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Purchase Order Financing Basics

Tuesday, July 28th, 2009
Invoice Purchasing
Marco Terry asked:


Let’s say that your business suddenly gets a big order from your best client. However, it is an order that is clearly too big for you. What would you do? If your business has a good banking relationship perhaps you may be able to tap into a line of credit or a bank loan. But what happens if your business is small or new and you have no banking relationship? Do you turn the customer away? Fortunately, you don’t have to. Purchase order (PO) financing may be able to help you secure the sale and deliver the order.

What can purchase order funding do for you?

Purchase order funding is a tool that allows you to finance your big orders. It provides the necessary funding to fulfill orders that otherwise you could not afford to deliver. When used correctly, it can enable you to grow your company quickly

As opposed to bank financing, purchase order funding does not rely on your company’s financial strength. Rather, it relies on the financial strength of your customers. This means that if you sell products to large companies or to government entities, purchase order funding can be the ideal option to finance those sales.

Who is a good candidate for purchase order financing?

To qualify for purchase order financing, your company must sell products rather than services. An ideal candidate for this type of financing would be a product re-seller or distributor who is buying products from a supplier and then shipping the products to the client. Purchase order financing can also work in instances where products are sold in conjunction with services (e.g. maintenance), however, the product part of the order must be separate from the services component.

The business case for PO financing

PO financing is simple to use. The po financing company buys the products from your suppliers in your name, using a letter of credit or similar instrument. It then ensures that the products are properly delivered to your client. Once the order is delivered and approved by your client, the funds from the letter of credit are released to your supplier.

At this point, the order has been delivered and an invoice is issued. Most invoices take 30 to 60 days to pay. Once an invoice is paid, the transaction between the parties is settled. It is common to combine po financing with receivables factoring because this enables you to reduce the total cost of the transaction.

Receivables factoring is a type of financing that provides you with financing based on your receivables (or invoices) for delivered products. Usually, once an invoice is generated, the invoice is factored and the funds are used to close the po financing facility. This is done because the rates for po financing tend to be higher than the rates for factoring receivables. This little trick can help you save money and realize greater profits.

Although po financing is a great tool, it does not work for every company. However, if you have margins of at least 20% and good paying customers, you should be able to benefit from it.



Small businesses seeking information on how Hudson Commercial Capital can help during this financial crisis can call 1.212.564-0031 or can visit

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Can a business claim back the VAT on an invoice from ebay?

Friday, July 24th, 2009
Invoice Purchasing
davehewison asked:


Can a business claim back the VAT on an invoice from ebay?

The ebay invoice states that VAT at a rate of 15% (Luxembourg Tax) is applied and charged on the total cost, is this Luxembourg tax recoverable?

The invoice is for ebay services and not for items purchased through ebay.

Small businesses seeking information on how Hudson Commercial Capital can help during this financial crisis can call 1.212.564-0031 or can visit

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What are the best Invoice and Debt Financing Options?

Sunday, July 12th, 2009
Invoice Purchasing
Mr. Charles asked:


I am President of a National Corporation specializing in the Permanent Placement of Sales and Management Professionals in the Mortgage Industry.

I am seeking a company or Private Investor who would Purchase my invoices when an order is completed and assume the responsibility of Collecting the funds owed as a result of these invoices. Average value of invoices is 2500 to 6000 USD each totaling approximately 25 to 30,000 USD per month. Projections show that these numbers will more than double in the next 3 to 6 months.

Since rapid access to these funds would greatly improve the cash flow of my firm, I am willing to sell these invoices at 90% of face value. Each invoice is secured by a contract that clearly states when balances are due and that any collection costs would be added to balance due, should payment fail to be made on time.

Where would I find an Investor or Firm who may be agreeable to this type of agreement?

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Invoice Discounting: the Way to Flow Cash in Business

Tuesday, July 7th, 2009
Invoice Purchasing
Article Manager asked:


Business requires cash or capital to maintain equilibrium in the market. It is often found that business owners face financial crunch as businesses are basically relied on credit format. The flow of cash in any business is very slow and the owner has to wait for 30 to 40 days to receive the payment. In the meantime, he or she has to pay employees’ salary, the rent and suppliers. If the owner does not have adequate fund up his sleeve or in the bank, his business will go nowhere. In such a situation, the business loan is the only option left, which is difficult to obtain and come with high rate of interest as well. What do you do? Don’t panic! Because factoring companies today are managing finance for you in the form of purchasing your invoices, which is usually called invoice discounting. This is considered as the easiest way to obtain cash in ten days. 

How does invoice discounting work? Invoice discounting or so-called invoice factoring is a process in which the business owner sells unpaid invoices to a factoring company at a discount. This ensures that no business will face sudden financial crisis at the crucial point of time. Now a question may come in your mind – why does a factoring company give discount on your unpaid invoices? The discount that the factoring company provides when purchasing your invoices is their profit. On the other hand, receiving cash instantly for your invoices helps you meet emergency expenses, launch new projects, pay for costly advertisement for brand promotion, meet employees’ demand, maintain cash transaction with suppliers to get heavy discount and expand your business.

It is pertinent to note that the discount rendered on invoice discounting revolves around 1.5% to 6% for every ten days until payment is due. Invoice discounting is a profitable option for the business that earns at least 15% of profit in the products and services. The factoring company can purchase your invoices in two installments, in which the first installment covers up to 85% of your invoices. The remaining 15% will be reduced once the customer actually pays the invoice. 

Whether you are running a small or medium size business; you will never fall short of cash once you adopt the invoice discounting option. Such an option is basically made for business owners to prosper in the market.



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How to computerization the work load in purchasing department?

Sunday, July 5th, 2009
Invoice Purchasing
ASAPurpleiceland asked:


hi guys,

need your advice. Any solution to reduce the manual wotk in purchasing department? Eg: 1)my co. is issuing manual payment voucher to match with the supplier invoice. is there any solution that lotus notes can improve it? 2)manual Purchasing Request form, eg:if anyone one is to purchase anything they have to fill up that form and pass the form for purchasing department for approval.

All this manual work take up alot of unproductive time, so would appreciate anyone to give solution to improve it. Thanks

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Any thoughts on how to keep INVOICE DISCREPANCIES at a minimum?

Thursday, July 2nd, 2009
Invoice Purchasing
victim_of_changes!! asked:


I work in the purchasing department. We are working to keep our invoice discrepancies down to a minimum, and I’m working on some strategies to keep them down. I’m open to any and all suggestions. Thanks!
ok, the kind that AP sends over to purchasing because the item “hasn’t been received”..this would be because the requsitioner doesn’t tell anyone that it’s received or “the pricing is different” or “an item has been added” which means the requsitioner has taken it upon themselves to call the company & add an item to the order and not had us in purchasing do it. things like that. capiche??

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Invoice Factoring Can Save Your Business

Tuesday, June 23rd, 2009
Invoice Purchasing
Troy Degarnham asked:


Invoice factoring is the basic practice of selling invoices to financial factoring companies for the purpose of receiving money right away. Smaller companies often fall into the financial trap of not having available resources and therefore sell their invoices to financial agencies in order to gain working capital. This practice does not require the business to swallow more debt and in fact operates in an opposite manner. Small businesses that don’t utilize the financial tool of accounts receivable factoring acquire more debt by waiting for the accounts receivables to be paid.

Invoice factoring is typically used as a measure to avoid falling further into debt. Without this effective financial management tool many businesses have to adopt more loans or alternatively, put up more collateral for existing loans. Invoice factoring is available at a minimal fee, which makes it an attractive substitute to assuming more debt. In fact, accounts receivable factoring fees are usually set up by way of discount and these rates differ from individual company to company. The great advantage to this type of liquidation is that there are no interest fees to pay and the result is most often better profit margins.

There are many financial companies that offer invoice factoring services. The individual agencies will set up a company with the right set of accounts receivable factoring parameters. After the professionals from the invoice factoring agency assess the individual situation, they will set up the receivables to be factored and proceed accordingly.

Financial agencies that offer accounts receivable factoring are located worldwide and support every industry under the sun. Even truck drivers can sell their invoices to an invoice factoring financial service to free up capital fast. One of the most attractive aspects to an accounts receivable factoring agency is that they customize the service to each business’s individual requirements.

There are as many different types of invoice factoring agencies, as they are rates for factoring invoices. Some purchase the invoices no matter what the receivable total is and some accounts receivable factoring agencies will only liquidate invoices that accumulate more than $100, 000. Generally the higher the invoice factoring total is, the lower the rates will be to take advantage of this financial escape. In cases where the total is in excess of a hundred thousand, a solid accounts receivable factoring agency will offer rates that can be as low as two per cent!

There are many different types of invoice factoring agencies. For example, some agencies will only serve those businesses in the medical profession while others only serve purchase order factoring. There are some accounts receivable factoring agencies that are specifically designed to cater to small business and offer many great advantages that a larger agency wouldn’t necessarily offer. Despite the type of invoice factoring agency that is required for every individual business need, accounts receivable factoring typically happens within a 24 hour time period.



Small businesses seeking information on how Hudson Commercial Capital can help during this financial crisis can call 1.212.564-0031 or can visit

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Can an Invoice Factoring Company Help You?

Saturday, June 20th, 2009
Invoice Purchasing
Marco Terry asked:


Sooner or later, every business will need financing to grow. Most owners will try to qualify for venture capital or angel financing. Others will try to get a business loan or line of credit, since business loans are popular with business owners.

All these business financing tools work well, but they also have a very important trait in common. They are hard to get and out of reach for most owners.

There is an alternative way of financing your business growth. Financing that is easy to qualify for, quick to set up and very cost effective. Not only that, it’s financing that grows with your business. And most of the time, you won’t get it from your local bank. This form of financing is called invoice factoring and you can get it from a factoring company.

Factoring is different than a bank loan and it works well if your biggest problem is that you can’t wait the 30 to 60 days that commercial clients take to pay their invoices. Basically, invoice factoring cuts the payment time to two days.

Factoring is simple. The factoring company buys your invoices (at a small discount) and pays you for them immediately. Then, the factoring company waits to get paid by your client. The net result: you get immediate working capital to pay business expenses and grow. You also eliminate the stress of having to wait to get paid and can count on a predictable cash flow.

As a form of financing, factoring offers two very distinct advantages over bank loans. First, it’s very easy to qualify for. Your main requirement is that you do business with strong commercial clients (or the government). Second, factoring financing grows with your business. As your invoicing grows, so does your financing. This enables you to easily cover the increasing costs of running a business that is growing.

A similar type of financing that is also offered by factoring companies is purchase order financing. Purchase order financing provides you with financing based on your purchase orders from large commercial clients. Purchase order financing is ideal for re-sellers and distributors that are growing quickly.

Whether you need financing because your customers pay you in 60 days or because you have a large purchase order from your biggest client, a factoring company will be able to offer alternatives to traditional financing.



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