Anchor Funding Services Blog

You May Be Able To Factor Your Company's Accounts Receivable Even If Your Company Has A Bank Loan

2009-09-14T21:14:00.005-04:00

When a bank lends to a company it typically secures itself by filing a lien on all of the company's assets. Factoring companies, like Anchor Funding Services, also file liens and normally a company cannot have a bank loan and factoring at the same time. Today, to provide a liquidity and credit life-line to many companies in need of increased cash flow, Anchor is seeing more banks subordinate the accounts receivable; this means that the banks allow Anchor to have a first position on the accounts receivable. Anchor Funding Services is working more closely with banks in this arrangement. If you believe that you cannot get factoring because you already have a company bank loan ask your bank if it will "subordinate" the accounts receivable or call Anchor Funding Services at 866-950-6669 and one of our consultants can assist you.

SBA Starts Approving ARC Loans on Monday June 15

2009-06-11T11:03:00.004-04:00

According to CNN.com, on Monday June 15th, the ARC (America's Recovery Capital) Loan Program that was part of the February Stimulus Bill is starting. Small Businesses can begin applying for interest-free debt-relief loan the the SBA (of up to $35,000). The loans are not as simple as asking your local bank for a loan and getting cash. In fact, it is going to be quite difficult to even qualify for the loan, some of the requirements- Business must be open for at least 2 years and profitable in at least one of the two and show they are experiencing financial hardship- sales decreasing by at least 20% over the last year, frozen credit lines, business costs increasing by at least 20% or difficulty meeting payroll, rent or making loan payments. There are other requirements, but this may rule out many small businesses already.

Another difficulty is finding banks that are willing to make the loan. The loan is interest-free for the borrower, the lender gets paid prime plus 2% (would pay 5.25% currently). Additionally, some banks are requiring prospective borrowers to be existing bank customers or to run credi scoring on the business. Lastly, Lenders can only make 50 ARC loans a week and only $225 million is available.

If your small business is struggling for cash flow and does not qualify or is turned down for the ARC loan, factoring may be an option. Unlike the strict requirements of the ARC loan, to qualify for factoring, you only need to have receivables from another business. Anchor Funding Services then runs a credit check on your customers and establish a credit limit. Anchor then buys your invoices and pays 80% to you that day. Anchor Funding Services then collects the invoice and pays you the difference (minus our fees).

If your business has been turned down or does not qualify for an ARC loan, visit our website or call one of our knowledgable business development officers at 866-950-6669 or fill out a quick quote.

Tips for Improving Cash Flow

2009-02-18T10:55:00.010-05:00

The New York Times.com Small Business Section offered advice yesterday on how to improve your cash flow. The first step is to check a potential clients credit references before they become a client. Having a thorough understanding of potential of customers and businesses finances, so that you can find out the risk before, not after when you are trying to collect on an invoice. Anchor Funding Services, a factoring company, provides bank and trade references free of charge as part of our factoring agreement.

The second bit of advice is to Bill Early. A business is not going to get paid until they are invoiced, so by billing them sooner, the faster your business will receive payment. Factoring your invoices with Anchor Funding Services can also speed up this payment process, once you invoice your client, Anchor Funding Services will advance you 80% of the invoice and you will receive payment often in 24-48 hrs. Anchor Funding Services will then collect the rest of the invoice and pay the difference to you minus our fees.

If your business is interested in learning more about factoring and how you can get paid on your invoices faster, visit our website or call one of our knowledgable business development officers at 866-950-6669 or fill out a quick quote.

Morry Rubin, CEO/Chairman of Anchor Funding Services Quoted in New York Times

2008-12-23T11:43:00.006-05:00

Morry Rubin, CEO/Chairman of Anchor Funding Services was quoted in a New York Times article titled "The Fight to Survive, Writ Small" in the Small Business Section. The article is about the difficulty that small businesses are having as lenders hoard cash and customers take longer to pay their bills. Many small businesses can not meet requirements to get bank loans.

The article then goes into detail about one avenue of financing that is readily available, factoring or accounts receivable financing. Morry Rubin discusses the tightening of the current credit markets and that clients who normally paid in 15 days are extending to 30 and those that paid in 30 are well past 60. Anchor Funding Services, a factoring company has seen a significant increase in business over the last couple months and expects that to continue as "the crisis was not created in one day - it will take time to heal."

If you are a small or medium sized business that has been turned down by bank lenders and are having a difficult time meeting payroll or your clients have been slow to pay contact one of our Business Development Officers at 866-950-6669 or go to our website and get a no obligation quote to learn if accounts receivable financing would help your business.

CNNMoney.com - How to Get Your Money

2008-12-04T15:03:00.007-05:00

In the small biz section of cnnmoney.com, there are 3 steps on how to get clients to pay the money that you are owed. 1. Have a method, 2. Play Nice at First and 3. Then Get Tough. As part of the Play Nice method, it is suggested to factor your accounts receivables. Factoring, is when a company, such as Anchor Funding Services purchases your accounts receivable for cash up front, then collects the invoice and pays you the remainder of the funds (minus our fees). This allows you to get funds in as little as 24 hours instead of waiting 30-60 days.

Another advantage of factoring your accounts receivable with Anchor Funding Services, is we provide Bank and Trade References free of charge to all of our customers. Before you do business with a company simply let your Account Executive know the name of the business and a contact and we will run a check on that company to see if they are likely to pay their bills and make a recommendation if you should do business with them. In these difficult economic times, it is essential for a small business to know who they are doing business with. To talk with one of our Business Development Officers about factoring your invoices and our free bank and trade reference checks, please call us at 866-950-6669 or visit our website and get a no obligation quote.

WSJ - Small Firms See Financing Harder to Get

2008-09-16T12:12:00.005-04:00

The Wall Street Journal today said the Lehman Brothers Bankruptcy filing, Merrill Lynch being bought and the overall market conditions will lead to tighter credit and tougher borrowing standards. The article quotes Scott Shane, an entreneurship professor at Case Western Reserve University, "Some businesses with solid credit histories and long track records will probably be only slightly affected, but many start-ups with no financial track record and those with less-than-stellar credit histories will have trouble borrowing money to run and expand their operations."

For small and medium sized businesses that have been turned down by banks, there are several options mentioned in the article, including credit unions, smaller community banks as well as non bank lenders offering accounts receivable or assets as collateral.

Anchor Funding Services, offers accounts receivable financing, also called factoring, to small and medium sized businesses. With factoring, the creditworthiness of your customers is the most important factor, not how long you have been in business, your personal credit history or your creditworthiness.

To get more information on factoring, visit Anchor Funding Services, call one of our Account Executives at 866-950-6669 or get a no obligation quote.

Brad Bernstein, President of Anchor Funding Services, Quoted in Newsweek.

2008-08-14T10:25:00.003-04:00

Brad Bernstein, President of Anchor Funding Services, was quoted in a recent Smart Answers question about "Landing a Business Loan After A Bankruptcy" Smart Answers for Entrepeneurs covers entrepeneurship and small-business issues that gets specific advice from experts in a twice weekly column.

The question raised was how to does a small business get funding after its been turned from several banks because of a personal bankruptcy. The author mentions that banks have been tightening lending standards and that there are other options including bootstrapping, strategic investors, but the majority of the column is about factoring.

If your company has business-to-business commercial invoices, factoring is an option, Brad Bernstein was quoted, "Unlike a bank where a small business goes to get a loan, we don't care whether the client has poor personal credit, is profitable, is new, or is growing fast."

Anchor Funding Services finances product and services companies in many industries, including IT, staffing, manufacturing, security and transportation. If your business could potentially be a candidate for factoring, get a no obligation quote, or call one of our Account Executives at 866-950-6669.

Fed Says More Banks Are Tightening Lending Standards

2008-08-12T10:05:00.004-04:00

According to the AP, The Federal Reserve said Monday that a majority of the banks surveyed reported tigtening their lending standards and terms on all major categories of consumer and business loans over the last 3 mos. The tightening of standards means that less and less small and medium sized businesses are unable to get a loan from the bank to expand or continue operations. According to additional results of the survey, according to Forbes, the trend will continue, "as on loans to businesses, 55% of domestic respondents, ... said they expected to tighten standards in the second half of 2008."

This means there will be little relief for small and medium sized businesses through the rest of the year. These businesses will have to turn to alternative financing methods to increase their cash flow. Factoring, or accounts receivable financing, is one alternative to quickly and easily increase cash flow.

Anchor Funding Services, a factoring company, offers low rates, flexible programs, Free Credit Checks, and a free ho hassle application. Visit our website to get a no obligation quote or us call toll-free at 866-950-6669.

Banks Continue to Reduce Business Loans

2008-07-28T14:48:00.003-04:00

In the New York Times today, there was another article on how many banks are curtailing loans to businesses. The article quotes Federal Reserve data that commercial and industrial loans from banks and short term commercial paper dropped almost 3% over the last year. The Times article says the housing and mortgage losses that banks are experiencing is affecting other areas of the business world. Profitable businesses with solid credit are even having a difficult time getting loans, or if they do the rates are high and the wait times are longer.

If your business has been turned down for a loan from a bank or you would like to consider alternative financing methods, factoring your accounts receivable is often a viable option. When factoring, a business sells their accounts receivable to a factoring company for cash. The credit worthiness of a business or the principals of the business are not important to a factor, what is important the credit worthiness of your suppliers and how likely they are to pay their bills.

To get a free factoring quote, visit our website, or call our toll-free number 866-950-MONY (6669).

Learn about Factoring with JoeBiz Video

2008-07-23T09:45:00.006-04:00

Many small and medium sized business owners are not familiar with factoring and do not know that through AR funding, they can get cash for their Accounts Receivables. The cash can then be used to expand their business, pay suppliers or meet payroll.

In the brief video below, Anchor Funding Services explains factoring and shows how easy it can be to get cash for your receivables using Joe Biz, a small business owner as an example. Anchor Funding buys Joe's accounts receivable and gives Joe cash for those receivables. Anchor then collects the funds from Joe's suppliers, gets a small fee and wires the rest of the money to Joe's business. Anchor Funding Services also provided credit checks free of charge on all of Joe's clients and prospects, so Joe can feel confident with who he does business with.

If you think your business would benefit from Anchor Funding Services accounts receivable factoring services, please do not hesitate to call 866-950-MONY (6669) to talk to one of our friendly Account Managers, or you can get a quick quote here.

Premiere Blog Post

2008-07-17T11:34:00.007-04:00

Welcome to the Anchor Funding Services Factoring Blog-

Anchor Funding Services is a factoring company based in Charlotte, NC with a sales office in Boca Raton, FL and a satellite office in the Odessa/Midland area of Texas to serve the unique needs of small and medium sized businesses in the Oil and Gas Industries. This blog will keep you up to date on the latest news and trends in factoring, tips and tools for small businesses, as well as financial news that potentially could effect you, our partners and our clients.

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