Archive for September, 2012

Trends in Microlending Good for Small Businesses

Monday, September 17th, 2012

The Wall Street Journal Online recently published an article highlighting the story of a New York city cab driver who was able to keep afloat in his business through a type of financing called microlending.

Microlending was formerly only popular in developing countries such as Mexico and Bangladesh. This is one positive outcome that seems to be on the rise, in part, in the wake of U.S. economic struggles: Small business owners with no credit history are still able to obtain a few thousand dollars through the process.

This type of lending offers just the right amount of support without setting up small business owners for failure: According to the Business Center for New Americans, a nonprofit lender, the default rate is only about 6%.

Little formal data exists, but bankers report some numbers that indicate the growth of microlending in the U.S. The U.S. Small Business Administration distributed about $47.5 million dollars towards microlending in the 2011 fiscal year – the largest amount in its history. Additionally, in the past ten years the average size of microloans has decreased 17% – down to $11,750; showing a trend toward even smaller loans.

Microlenders can be both for-profit and nonprofit. Nonprofits are able to fund because of private donations and support from federal and state programs.

Large US banks frequently turn down small business for loans, offering them business credit cards instead; which can create even more debt. Many small businesses striving for financial stability and independence
have been frustrated in their efforts because they have so little to fall back on in the first place; but microlending offers some hope for the future of small businesses.

Click here to read the full story Mini Loans Feed Bigger Ambitions.

CBiz Small Business Employment Index is Up in August

Thursday, September 13th, 2012

Just released: The CBiz Payroll Services announced that its Small Business Employment Index, a barometer of hiring trends among companies with 300 or fewer employees, went up by 1.15% in August, after a decline of 1.57% in July. Additionally, 29% of survey respondents increased staffing, while 20% let go employees.

Moreover, Philip Noftsinger, business unit president for CBiz Payroll Services, said the data sets, taken together, “provide some hope that employment is at least on solid ground and increasing moderately.”

Click here to read the entire announcement: CBiz Small Business Employment Index rises in August.

Overview of Nurse Staffing Accounts Receivable Factoring

Friday, September 7th, 2012

When your nurse staffing agency bills clients, you know that medical providers (i.e. hospitals, nursing homes, medical clinics, etc.) can take months to compensate you for your staff’s time. When you use nurse staffing accounts receivable factoring to secure funding for your company, you can:

  • Rest assured that you can pay bills and employees on time.
  • Have the confidence to make the necessary moves toward expansion.

What Is Nurse Staffing Accounts Receivable Factoring?
In nurse staffing accounts receivable factoring, outstanding invoices are converted into cash through a ‘factor’ for a discount. This means that instead of waiting for your clients to pay you for your staffing services, you will be able to use the money your workers have already earned right away.

Most factors offer nurse staffing non-recourse factoring: this allows a factor to be held responsible for unpaid invoices if the staffing agency goes out of business or declares bankruptcy during the time in which the owner’s invoice was factored. Non-recourse factoring does not cover:

  • Very late payments where there is no bankruptcy.
  • Disputes over invoices.
  • General collections issues.

With accounts receivable factoring, you won’t hesitate to accept large staffing requests due to lack of funding.

Click here to read more about nurse staffing accounts receivables factoring.

Factor Finders Helps Factoring Brokers Increase Commissions

Wednesday, September 5th, 2012

The invoice funding specialists at PRN Funding, LLC wanted to share some exciting news with the factoring brokers and cash flow consultants who consistently read our blog.

We have launched a sister company to aid factoring brokers in closing more deals — Factor Finders, LLC.

Factor Finders knows how to get complicated deals done. We have formed extensive relationships with a network of credible funding companies all over the globe. If you can’t find a funding source for your prospect, we can, and we will split commissions 50-50 once a deal is done.

Want to learn more? Check out the video below to learn how Factor Finders can help you get more commissions!

Contact us at 1-855-FACTOR-1 or visit our Factoring Broker Program page on our web site for more details.