The International Factoring Association (IFA) Conference is a premier event for the factoring and receivables finance industry, bringing together professionals from around the country to network, learn, and explore new opportunities. The upcoming IFA Conference on May 10, 2023, to May 12, 2023, promises to be a game-changer for businesses looking to unlock their cash flow and accelerate their growth, with the chance to meet specialists from CapFlow Funding Group, a leading provider of factoring services.
The IFA Conference is a dynamic platform that offers a unique opportunity for professionals in the factoring industry to connect with industry experts, stay up to date with the latest trends and best practices, and explore new business prospects. With a diverse range of attendees, including factoring companies, asset-based lenders, service providers, and industry professionals, the IFA Conference provides a vibrant and collaborative environment for learning and networking.
The IFA Annual Conference is one of the IFA’s flagship events, featuring a packed agenda filled with educational sessions, networking opportunities, and industry insights. Here’s the agenda for the IFA Annual Conference, based on the information available on the IFA website (https://www.factoring.org/annual_conference_schedule):
6:30 am – 2:30 pm: Networking Golf Tournament. Location: Bayou Oaks Golf Course, City Park.
8:00 am – 4:00 pm: Factoring Essentials Training Course Session.
11:00 am – 3:00 pm: Networking Opportunity: New Orleans Food & History Tour. Location: French Quarter.
1:00 pm – 4:00 pm: Idea Exchange. This will consist of an informal roundtable for attendees to discuss ideas, trends, and issues in the factoring industry. Attendees may come and go to the idea exchange as they please.
4:00 pm – 5:30 pm: Chapters Reception for Chapter Members in the Northeast, Midwest, Rockies, Texas, Southern California, and Canada.
4:00 pm – 5:30 pm: NEXGEN Reception.
5:30 pm – 7:30 pm: Networking Opportunity: Welcome Reception.
8:30 am – 9:30 am: IFA / AFA Update
9:30 am – 10:30 am: The New Abnormal: How Global Trends are Affecting Your Business featuring keynote speaker Rich Karlgaard.
11:00 am – 12:30 pm: Thursday Morning Breakout Sessions
Breakout Session #1 — Current Topics in Transportation Factoring
Session #2 — Unusual Events in Factoring to be on the Look-Out
Session #3 — Factoring 101
Last Session – The Do’s & Don’ts of Construction Factoring
3:30 pm – 4:30 pm: Thursday Afternoon Breakout Sessions
Breakout Session #1 — Speed Networking
Session #2 — Roundtable for Senior Executives
Session #3 — NEXGEN panel
Last Session – Inventory Financing
Last Session – The Art of Finding the Appropriate Lender
5:00 pm – 6:30 pm: Roof Top Happy Hour
9:00 pm – 11:00 pm: Tax Guard After Party
9:00 am – 9:30 am: AFA Congressional Viewpoint
9:30 am – 10:30 am: What the Economy Can Do for Factors with keynote speaker Peter Ricchiuti.
11:00 am – 12:30 pm: Friday Morning Breakout Sessions
Breakout Session #1 – Reports from the courts
Session #2 – Canadian Factoring Landscape
Session #3 – Roundtable for Small Factors
2:00 – 3:00 pm: Friday Afternoon Breakout Sessions (Group A)
Breakout Session #1 – Effective Growth Strategies (Part 1)
Session #2 – Legal Panel
Session #3 – ERC Workshop for Factors
Last Session – Fraud/Risk Management Panel
3:30 pm – 4:30 pm: Friday Afternoon Breakout Sessions (Group B)
Breakout Session #1 – Effective Growth Strategies for Factors (Part 2)
Session #2 – Commercial Finance Disclosures
Session #3 – Operations Roundtable
Last Session – International Updates
At the upcoming IFA Conference, CapFlow Funding Group will be a key presence, showcasing its innovative factoring solutions that have been transforming the way businesses finance their operations. As a leading provider of factoring services, CapFlow Funding Group offers a range of flexible financing options that can help businesses unlock their cash flow and fuel their growth.
Meeting CapFlow Funding Group specialists at the IFA Conference can be a game-changer for businesses looking for reliable and efficient financing solutions. The CapFlow Funding Group team brings a wealth of experience and expertise in the factoring industry, and they are known for their personalized approach to understanding and addressing the unique financing needs of businesses of all sizes. Attendees may schedule a one-on-one meeting with one of our team members at: https://calendly.com/meetatconferences/capflow-funding-at-ifa-conference.
CapFlow Funding Group’s factoring solutions are designed to be flexible, scalable, and tailored to the specific needs of each business. They offer factoring services for various industries, including manufacturing, distribution, staffing, and more. With their expertise, CapFlow Funding Group can provide businesses with the financial flexibility they need to navigate through challenges, seize opportunities, and unleash their full potential.
In addition to their factoring services, CapFlow Funding Group also provides value-added services, such as credit checks, accounts receivable management, and invoice processing, to help businesses streamline their operations and improve their cash flow management.
The IFA Conference provides an excellent opportunity to meet CapFlow Funding Group specialists and learn more about how their factoring solutions can benefit your business. Their team is known for their professionalism, responsiveness, and commitment to helping businesses succeed. By partnering with CapFlow Funding Group, businesses can access a reliable and efficient source of working capital, gain financial flexibility, and unlock their business potential.
Positioning your business in an unpredictable economy means taking proactive steps to ensure that your business can survive and thrive in a highly volatile and uncertain market. In an unpredictable economy, factors such as fluctuations in consumer demand, changes in government regulations, rising costs and interest rates, and global events can significantly impact businesses.
Positioning your business involves analyzing the market trends, understanding your target audience, and developing strategies that can help your business stay competitive and adapt to the changing economic landscape. This may include diversifying your product or service offerings, investing in innovation, building a strong online presence, focusing on customer retention, and closely monitoring your financials.
As a business owner, anticipating and adapting to changes in the economy is essential. The economy is unpredictable, and sudden changes can pose significant risks to businesses. To mitigate these risks, it’s important to anticipate potential problems and implement strategies to address them. This approach enables you to minimize the impact of economic changes on your business. Moreover, market conditions can shift rapidly, and being prepared enables you to adapt by developing new products or services, changing your marketing strategy, or adjusting your pricing. Staying competitive in your market requires taking advantage of new opportunities that arise due to these changes.
Limiting non-essential spending can be a smart financial decision for individuals and businesses, especially during uncertain economic times. This can help preserve your cash flow, which is crucial for businesses to stay afloat. By conserving cash, businesses can maintain their financial stability and better weather any economic downturns.
Furthermore, it can help reduce debt. By avoiding unnecessary expenses, you can allocate more money toward paying off debts. By saving money and investing in your business or personal growth, you can position yourself for long-term success.
Building and maintaining relationships with customers can be especially beneficial for small businesses during economic slumps. It can increase their loyalty and likelihood to continue doing business with you. This can help you retain customers even during challenging economic times when many businesses may struggle to attract new customers. Satisfied customers are more likely to refer your business to others.
Moreover, you can also gain valuable insights into your consumers’ needs and preferences. That way you can adapt your products or services to better meet their needs and stay competitive in an unpredictable market.
Considering alternative financing options during an unpredictable economy can be a smart financial decision for businesses. Here are some reasons why:
1. Diversify your funding sources: Relying on a single source of funding can be risky during an unpredictable economy. Alternative financing options, such as merchant cash advances, credit card splits, and invoice factoring can provide additional sources of funding and reduce dependence on traditional financing methods.
2. Flexible terms and conditions: Alternative financing may offer more flexible terms and conditions than traditional financing methods. For example, some alternative lenders may be more willing to work with businesses with lower credit scores or offer more flexible repayment schedules.
3. Quick access to capital: These options typically provide faster access to capital than traditional financing methods. This can be especially important for businesses that need to act quickly to take advantage of opportunities or address unexpected challenges
Healthcare factoring, also known as medical factoring, is a financial transaction in which a healthcare provider sells its accounts receivable to a third-party financing company, known as a factor, at a discount. The factoring company then assumes the responsibility of collecting payment from the healthcare provider’s patients or insurance companies on the outstanding invoices. In exchange for this service, the factoring company charges a fee or commission. This is typically a percentage of the total invoice value. Healthcare factoring is a common practice in the healthcare industry. It is used to improve cash flow and reduce financial risk for healthcare providers.
1. Some typical steps involved in the healthcare factoring process are:
2. The healthcare provider submits their outstanding invoices to the factor.
3. The factoring company evaluates the invoices to determine their collectability and risk level.
4. If approved, the company purchases the invoices from the healthcare provider at a discount. This is usually between 70% to 90% of their total value.
5. The company then assumes the responsibility of collecting payment from the healthcare provider’s patients or insurance companies on the outstanding invoices.
6. Once payment is received, the factor deducts its fee or commission, which is typically a percentage of the total invoice value, and remits the remaining amount to the healthcare provider.
7. The factor continues to manage the healthcare provider’s accounts receivable until all outstanding invoices are collected.
Healthcare factoring allows healthcare providers to access cash quickly, without having to wait for payment on outstanding invoices. It also helps to reduce financial risk and administrative burdens associated with managing accounts receivable.
Healthcare factoring and medical invoice factoring are essentially the same thing and are often used interchangeably. They both refer to the process of selling outstanding invoices to a third-party financing company in exchange for immediate cash.
However, it’s worth noting that healthcare factoring can be broader in scope than medical invoice factoring. Healthcare factoring may include the financing of a broader range of healthcare-related businesses. Including hospitals, clinics, nursing homes, home health agencies, and medical equipment suppliers, among others. Medical invoice factoring, on the other hand, typically refers specifically to the financing of medical practices. For example, physician groups, dentists, and other healthcare providers who primarily bill for medical services.
The specific requirements for obtaining healthcare factoring can vary depending on the financing company and the healthcare provider’s individual circumstances. However, here are some general requirements that healthcare providers may need to meet in order to be eligible for healthcare factoring:
Established business: Healthcare providers must have a proven track record of providing services and generating revenue over a period of time to be eligible for healthcare factoring. Start-ups and businesses with a limited operating history may find it more challenging to secure healthcare factoring.
Consistent revenue: Healthcare providers must have a consistent revenue stream from insurance reimbursements or patient payments. This helps ensure that the financing company will be able to collect the outstanding invoices and reduces the risk of default.
Quality of invoices: The outstanding invoices submitted for factoring should be free of disputes or any other issues that may affect their collectability. The financing company will evaluate the invoices to determine their risk level. They may decline invoices that are considered too risky.
Insurance verification: The financing company may verify insurance coverage and confirm the status of outstanding claims to reduce the risk of non-payment.
No tax liens or bankruptcies: Healthcare providers with outstanding tax liens or bankruptcies may find it difficult to obtain healthcare factoring.
Adequate profit margin: Healthcare providers must have a sufficient profit margin to cover the cost of factoring fees or commissions.
Overall, healthcare factoring can be an attractive financing option for healthcare providers seeking to improve their cash flow and reduce financial risk. Providers should carefully evaluate their options and work with a reputable financing company that understands the healthcare industry and its unique financing needs.
Invoice factoring is a financial arrangement where a company sells its unpaid invoices to a third-party finance company, also known as a factoring company, at a discounted rate. This allows the company to access immediate cash flow without waiting for its customers to pay.
The factor will typically advance a percentage of the invoice’s total value, often around 80-90%, to the company upfront. The factoring company will then take over the responsibility of collecting payment from the customer, allowing the company to focus on its core business activities.
Once the customer pays the invoice, the factoring company will release the remaining balance, minus their fee, back to the company.
Overall, invoice factoring provides a way for companies to improve their cash flow and reduce the risk of bad debts.
As mentioned above – yes, invoice factoring does involve fees and rates. These rates and fees can vary depending on several factors such as the industry, size of the business, the creditworthiness of the customers, and the volume of invoices being factored. Here are some common fees and rates associated with invoice factoring:
1. Factoring Fee: This is the main fee charged by factoring companies, usually expressed as a percentage of the invoice amount. The factoring fee can range from 1% to 5% of the invoice value, depending on various factors.
2. Advance Rate: This is the percentage of the invoice value that the factoring company will advance to the business upfront. Advance rates can vary from 70% to 95% of the invoice value.
3. Monthly Minimum Fee: Some factoring companies require businesses to factor a minimum number of invoices per month. If the minimum threshold is not met, a monthly minimum fee may be charged.
4. Termination Fee: Some factoring agreements may have a termination fee if the business wants to terminate the agreement before the end of the contract term.
To calculate the total cost of invoice factoring, you can manually calculate roughly how much you would pay in rates and fees. Here is a step-by-step guide to doing so:
Determine the Factoring Fee: For example, if the factoring fee is 2%, and the invoice value is $10,000, the factoring fee would be $200 (2% of $10,000).
Calculate the Advance Rate: The advance rate depends on how much the factoring company decides to advance you and how much money they have determined for your business. For example, if the advance rate is 80% and the invoice value is $10,000, the factoring company will advance $8,000 to the business.
Consider Other Fees: There may be other fees charged by the factoring company, such as due diligence fees, monthly minimum fees, or termination fees. You will need to add these fees to calculate the total cost.
Add up the Costs: Add everything up to estimate roughly how much this will cost you.
For example, let’s say you are factoring an invoice with a value of $10,000, and the factoring company charges a factoring fee of 2%, offers an advance rate of 80% and charges a monthly minimum fee of $100.
The calculation would be as follows:
Factoring Fee = 2% of $10,000 = $200, Advance Amount = 80% of $10,000 = $8,000, Other Fees (monthly minimum fee) = $100
Total Cost of Invoice Factoring = $200 + $100 = $300
Therefore, the total cost of invoice factoring in this example would be $300. You would receive an advance amount of $8,000.
Instead of having to manually calculate the information above, you can use a factoring calculator. A factoring calculator can help a business see if invoice factoring would be cost-efficient for them. It can also help you to:
Estimate the cost of factoring: Factoring can be a complex process, and a calculator can help you estimate the cost of factoring an invoice or a group of invoices. This can help you determine whether factoring is a cost-effective financing option for your business.
Compare factoring rates: Different factors may charge different fees and interest rates for factoring. A calculator can help you compare the rates of different factors to find the best option.
Plan for cash flow: By estimating the cost of factoring, you can plan for your cash flow needs more effectively. For example, if you know that factoring in an invoice will cost a certain amount, you can budget for that expense. To make sure that you have enough funds to cover other expenses.
In summary, using a factoring calculator can help you make informed decisions about factoring. This ensure that you are getting the best possible rates and terms for your business. Fortunately, you can conveniently use the calculator on our website to help you plan, estimate costs, and roughly calculate your advance rate.
We are excited to announce that CapFlow Funding Group has closed on a $500,000 factoring facility for an American based apparel manufacturer.
“We are extremely pleased to announce this factoring facility for a growing and thriving American apparel manufacturer based in the Rocky Mountain Region. We worked closely with their team to develop a customed factoring solution that fit their exact needs to take on more purchase orders and expand on operations. We look forward to funding another American business towards their objectives ahead.” – CEO, Andrew Coon.
The apparel manufacturer is a multidisciplinary circular economy design and apparel PBC based in the Rocky Mountain Region. This American apparel manufacturer currently works with some of largest, most well-known clothing retailers in the marketplace. Like many growing American manufacturers, our latest financing needed working capital faster than the product cycle allowed, to continue to expand on their operations and growth.
“Due to our fast turnaround time and adaptable factoring options, we assisted our client in achieving their objectives by offering a cost-effective remedy for the common cash flow challenges faced by many emerging manufacturing firms.” – Business Development Officer, Kevin Gillespie.
At CapFlow Funding Group, we look forward to financing this American manufacturer as it creates more careers in the manufacturing sector of the Rocky Mountain Region, all while developing locally sourced, American manufactured products.
About CapFlow Funding Group
At CapFlow Funding, we are a financing company that offers working capital solutions to small and medium-sized businesses across the United States. Our primary focus is on factoring, which involves purchasing accounts receivable from businesses at a discount in exchange for immediate cash. This provides businesses with the funds they need to cover short-term expenses, such as paying employees or purchasing inventory, while waiting for their customers to pay outstanding invoices.
In order for a business to thrive it must have all available funding at its disposal for whenever an urgent need arises. Whether it be for regularly planned spending or unexpected expenditures. This is why alternative financing options are important: these lenders are the ones that businesses often turn to when they need quick funding to keep their business moving forward.
Invoice factoring is arguably one of the quickest and best funding options for businesses across various industries. Below we discuss how invoice factoring helps different industries get the funds they need to keep their cash flow healthy.
All industries can benefit from invoice factoring: the quick turn-around time, the debt-free funding, and the streamlined approval process make it one of the easiest funding options to turn to. Here are some of the most common industries that utilize invoice factoring.
The transportation industry is very dynamic. Because of the constant change within this industry, there are generally many unexpected expenses that the business requires funding for, i.e., oil and gas expenses, the toll payments, and of course, the emergency repairs. With invoice factoring, the business can quickly and easily utilize the factoring facility to meet all the current and urgent needs of the business.
During the COVID-19 pandemic, utilization of health insurance skyrocketed. The reality is that health insurance companies do not pay on time. Yet hospitals and other healthcare facilities need timely payments to continue to offer the best healthcare services and to keep the institution running in a stable manner; healthcare facilities cannot wait for insurance companies to pay them before continuing the services. Factoring companies can partner with healthcare institutions to provide funding for immediate needs, or for greater opportunities that would enhance the healthcare facilities’ services, and/or equipment.
The oil and gas industry is a massive enterprise. It is an enterprise that requires substantial funding, both for planned expansion and unexpected expenses. These businesses usually plan for expansion in the future, and invoice factoring for oil and gas companies could surely give a boost to companies in this industry. Normal business operations for these types of companies require funding for unexpected equipment issues in addition to plant maintenance which requires a significant amount of funding. Invoice factoring can provide the business with that funding in 24 hours.
The staffing industry is the backbone of all industries as they supply the manpower that other industries require. Staffing companies generally have an urgent need for cash. They specifically need to sustain their payroll on an ongoing basis to ensure that the business stays afloat. Invoice factoring for staffing companies assists all businesses in this industry.
If you think about manufacturing companies, the first thing that comes to mind is the volume of products or items being produced on a daily basis. Companies that produce a significant amount of products generally experience a shortage in their day-to-day funding, especially when there are unpaid invoices from their distributors. However, production should not be put to a halt because of that, especially when orders continue to come in. Invoice factoring can assist by providing the necessary funds through the sale of their invoicing.
The telecommunication industry is one of the most costly industries in terms of daily overhead expenses. There is equipment maintenance and repair, payroll, and security, to name a few. If one or more of these needs cannot be met by the companies existing cash flow, it could cause complete chaos for the business. Invoice factoring provides the necessary cash flow for telecommunication businesses so they can continue to provide their services without interruption.
With invoice factoring’s versatility, government contractors can also benefit from this type of funding. As long as the contract with the government stipulates that the invoice could be assigned to a third party. Then, government contractors could benefit from invoice factoring. While government invoices are legitimate and verifiable, they usually have non-standard payment terms. In most cases the contractor cannot wait for those funds to come to term. Instead of waiting for the invoice to mature and pay, a factoring company can purchase those invoices upfront and wait for the payments to collect so the contractor can continue to conduct its business in a timely manner.
Invoice payments for landscaping enterprises usually have lengthy terms. Most landscaping businesses have more than one project going on at any given time so there will always be a need for consistent funding if they are going to expand the business at some point. While the landscaping enterprise can offer shorter payment terms, or simply require payment upfront, it could potentially lose their customer base which is also trying to manage their expenses by taking advantage of invoice payments with long terms. Invoice factoring can provide the landscaping enterprise with consistent funding so it can continue to offer extended terms to its customers.
Consulting firms are project-based businesses that rely on consistent income to keep the business running. However, payment is not always straightforward; sometimes it takes 30 days to 60 days upon completion of the project before payment is due to be made. However, payment to suppliers in the meantime cannot wait. Invoice factoring for consulting firms could help by providing the necessary funds needed to pay suppliers and allow the consulting firm to take on new clients and projects.
The agriculture sector is an essential part of the economy. A healthy agriculture industry is a sign of a developed nation. However, our farmers, especially small farmers, need to meet all of their obligations from many different suppliers at once: from fertilizer to seeds, to equipment, and many others. These expenses generally cannot wait for invoices to be paid. Invoice factoring can help farmers by providing the necessary funding so they can sustain their cash flow by providing timely payments to their suppliers.
As stated earlier, invoice factoring can assist almost all industries. Invoice factoring is a very versatile product, and with its quick turnaround time in funding businesses, every industry is sure to reap the benefits of it.
Most industries can quality for invoice factoring. All the business needs to do is complete and provide the necessary paperwork requested by the factoring company. It is important that the business provides all of the information requested and does not hide anything. Especially from a financial standpoint. The business will also be asked to provide a list of its current customers. It is extremely helpful if the business has credit-worthy customers and good payers that are already established. As it can assist in the application and approval process for funding the business. At CapFlow, we make sure that your business benefits from all aspects of invoice factoring. Through our extensive funding experience and our partnerships across many different industries, we can provide businesses in all industries the funding they need to achieve their organization’s success.
With their stringent requirements and high-interest rates, small to medium-sized businesses are having a hard time securing a loan from traditional banks. Good thing that there are alternative financing options that businesses now can avail of to get the funding they needed.
What, then, is alternative financing? Alternative financing means obtaining funding from non-traditional funding or non-bank institutions. It has a different process of approving credit or funding, and the terms and conditions are different than those of a traditional bank. It caters to businesses of all magnitudes but small to medium-sized businesses could leverage the advantages that alternative financing brings.
While alternative financing has been around for quite some time already, there are still some misconceptions about it due to a lack of exposure to the products. Let us discuss here to dispel these misconceptions.
Small to medium-sized businesses are wary to try alternative financing because of the myth that they need to have high margins to be able to have access to these kinds of financing. This is definitely not the case. An alternative lender caters to businesses of all sizes, including small and medium-sized enterprises. Others even prefer small businesses as clients. Don’t let your current business margin faze you!
This myth is the one that stops small to medium-sized businesses in their tracks. But the truth is, alternative financing employs a more streamlined process. While traditional banks would require good credit standing, some alternative financing would not even look at credit scores in screening your business. Some would only require a list of your current customers, or even expected revenue streams. Seeing as these requirements are not difficult to provide, it’s easy to say that small to medium-sized businesses could opt for alternative financing easily.
Traditional banks usually have regulators that oversee their business. Seeing as these alternative financiers are not banking institutions, it’s easy to understand why many would think that they are unregulated. However, this is far from the truth. Transactions involving alternative financing involve contract and commercial laws and require adherence to federal and state laws regarding financial transaction disclosures and other regulatory issuance.
Credit scores pertain to your ability to meet your obligations to your creditors. A good credit score means that you were able to pay your dues on time and maintain a good record with your banks. Credit score entails your ability to pay your debts; alternative financing on the other hand is revenue-based financing, without the business incurring debts. Since there are no debts involved, transactions involving an alternative lender would not in any manner affect your credit score.
These alternative financing options fill the gap that traditional banks leave: they provide the much-needed funding for small to medium-sized businesses that are not qualified to avail loans from traditional banks, or even if qualified, are unable to do so due to a myriad of factors. It gives these businesses a lifeline that they can hold on to to be able to pursue their business goals, as well as access to additional funding for any immediate or urgent needs of the business. This is why these common misconceptions should be put to rest so more businesses would be encouraged to try and explore these alternative options.
There are already lots of alternative financing options out there that businesses can consider. Bearing in mind what’s best for the company. Here are some options:
Invoice financing – this alternative financing involves the sale of a business’s unpaid invoices to factoring companies. They pay a certain percentage of the invoice amount to the business.
Merchant cash advance – under this financing, the business owner receives a lump sum amount from the financier. In return, the business owner will pay the financier a certain portion of its revenue from credit card and debit card sales.
Credit card splits – in this financing, businesses can have a credit card split agreement where the financier will provide a lump sum amount for the business’ urgent funding needs. In return, the financier will have a portion, or “split,” on payments made to the business using a credit card.
These are but a few examples of alternative financing that are available for businesses. Moreover, it is not uncommon nowadays for banks to partner with alternative financing providers. This way, businesses need not navigate on their own to find the best funding that would suit their needs. For businesses, now is the best time to explore and get to know more about these alternative financing options.