When the Bank Says NO!

Factoring has been practiced for centuries. The Romans sold promissory notes at a discount as did the Phoenicians. The word "factor" comes from Latin, the language of Rome. It means "to do" or "to make." The Pilgrim's journeys to America were financed by advances from a Factor who provided the funds to pay for the journey. The Pilgrims repaid the money with earnings from America. Factoring to this day is an extremely common business practice in Europe whereas many American business men have never heard of it.

Factoring is the selling of your accounts receivable for cash versus waiting 30-60 or 90 days to be paid by your customer. When you provide a Factoring company with copies of your invoices, the Factoring Company uses your invoices to make a loan to your company. It is a simple process and can be automated after the first transaction. Credit is not an issue when providing Accounts Receivable Loans or Financing. The Financial Companies looks at the credit history of the vendor not yours! This is exceptional good for small to medium size business that have been in business for less then two years.

My first experience with Factoring came when one of my Tax clients ending up with a sizable Tax liability one year. He ran a small Trucking company and had very few tax problems in the pass. However, because of a sudden burst in growth he was doing 2 to 3 times more business in the last half of the year. Because he did not have sufficient tax write offs, his tax liability really hit hard. He was actually having serious cash flow problems because of unplanned growth!

We talked about the situation, his taxes were completed and because he had rented a couple of trucks to keep up with the work load, we were able to use the rental cost as a write off. But there was still the self-employment tax and there was no doubt he had an increase in business income.

I didn't say anything, but I was worried about his payment for the Tax preparation. I knew he was having cash flow problems and the tax bill did not help. Then he told me about the $30,000 worth of Invoices. Because the invoices had not been paid they were not included in his income for that year so I had no idea that he had invoices in that amount. In fact the invoices where crumbles up and scattered over his desk.

I went on the Internet and started to research "invoices". I had never really understood Factoring before that time, but I had heard of it. We did not factor my client's Invoices because he called the company he worked with, explained the situation and they paid him 50% of the Invoice immediately and the balance shortly after.

I had already researched "Factoring" or Accounts Receivable Financing and being a Tax person I was always looking for ways to help my clients pay their taxes as soon as possible, especially if they owed employee taxes.

I put an ad online and within days a CPA called. He had a client who imported culinary products from overseas. They needed to factor a fairly large invoice. I called one of the Factoring Companies explained the situation. The Factoring Company arranged for his company to do a Purchase Order from his supplier overseas. Once the Purchase Order was in place, we factored the Invoice. The client received over 90% of the Invoice amount within days. He then went on to repeat the deal 3 or 4 more times!

Purchase Order Funding is slightly harder to get then Accounts Receivable Financing, however, PO Funding is very helpful for Business who makes large purchases and resells to a third party. For more information on Purchase Order Funding and the advantages of Factoring go to http://www/taxeswilltravel.com

Cassandra Ingraham is a Licensed Tax Practitioner in the state of California. Her Tax Business specializes in Taxes, 100% financing for Credit Problem Clients (in 45 States) and Invoice Factoring. You can find more information at http://www.taxeswilltravel.com

---

Google News Updated : Thu, 24 Jul 2008 18:51:58 GMT Ford Has $8.7 Billion Loss, Shifts Away From Trucks (Update4) - Bloomberg Ford Has $8.7 Billion Loss, Shifts Away From Trucks (Update4) Bloomberg - 44 minutes ago By Bill Koenig July 24 (Bloomberg) -- Ford Motor Co., the world's third- biggest automaker, posted a record quarterly loss of $8.7 billion and accelerated a conversion to fuel-efficient vehicles to wean itself from money-losing trucks. Ford's Worst Quarter Ever BusinessWeek Ford Posts Loss of $8.7 Billion on Asset Woes New York Times Forbes - CNNMoney.com - Reuters - Los Angeles Times all 1,181 news articles Publ.Date : Thu, 24 Jul 2008 18:07:48 GMT Would UN Security Council Postpone Any Prosecution of Sudanese Leader? - Voice of America Voice of America Would UN Security Council Postpone Any Prosecution of Sudanese Leader? Voice of America - 1 hour ago By Joe De Capua As the International Criminal Court (ICC) considers whether to issue arrest warrants for Sudanese President al-Bashir, some are calling on the UN Security Council to block the action. Sudan's Beshir pledges peace as he leaves Darfur AFP Jordan's lower house opposes charges against Sudanese president Xinhua Hindu - Los Angeles Times - istockAnalyst.com - AllAfrica.com all 1,823 news articles Publ.Date : Thu, 24 Jul 2008 17:30:10 GMT FOX News Poll: No Bounce for Obama From Overseas Trip - FOXNews ABC News FOX News Poll: No Bounce for Obama From Overseas Trip FOXNews - 27 minutes ago By Dana Blanton The significant news coverage Barack Obama is receiving on his foreign trip has not translated into a bounce in his numbers, a just-released FOX News poll shows. Wanted: 2 million poll workers for November The Associated Press Comment by Leonard Steinhorn Prof, School of Communication, American University New York Times - CNN - United Press International - PolitickerCA all 689 news articles Publ.Date : Thu, 24 Jul 2008 18:24:50 GMT South Texas begins cleanup after Hurricane Dolly - The Associated Press Calgary Herald South Texas begins cleanup after Hurricane Dolly The Associated Press - 30 minutes ago HARLINGEN, Texas (AP) - Residents across south Texas slogged through knee-deep muddy waters, tiptoed around downed power lines and dug through debris Thursday, but were thankful that Hurricane Dolly didn't pack the wallop they had feared. Video: Tropical Storm Dolly Causes Flood Worries AssociatedPress Dolly weakens, pushes inland USA Today East Valley Tribune - AHN - KIII TV3 - KVIA all 7,399 news articles Publ.Date : Thu, 24 Jul 2008 18:21:14 GMT Swimmer’s Positive Test Puts Olympic Berth Doubt - New York Times New York Times Swimmer’s Positive Test Puts Olympic Berth Doubt New York Times - 30 minutes ago By KAREN CROUSE The swimmer Jessica Hardy has not been penalized for a doping offense despite published reports that she tested positive for a banned substance. Video: Source:Hardy Tests Positive for Banned Substance AssociatedPress Sequence doesn't make Sense Los Angeles Times Gay Wired - Palo Alto Online - The Wenatchee World Online - The Associated Press all 750 news articles Publ.Date : Thu, 24 Jul 2008 18:21:30 GMT Health Buzz: A $500 million Antismoking Campaign and Other Health News - U.S. News & World Report BBC News Health Buzz: A $500 million Antismoking Campaign and Other Health News U.S. News & World Report - 3 hours ago Billionaires Bill Gates and New York City Mayor Michael R. Bloomberg announced yesterday that they'll contribute a combined $500 million to a worldwide antismoking campaign, the New York Times reports. Video: Gates, Bloomberg Pool Riches to Fight Smoking AssociatedPress The $500 million war on smoking Minneapolis Star Tribune Reuters - Newsday - Economist - California Healthline all 639 news articles Publ.Date : Thu, 24 Jul 2008 15:43:30 GMT Arizona reports first West Nile death of 2008 - Bizjournals.com TheMedGuru Arizona reports first West Nile death of 2008 Bizjournals.com - 1 hour ago Arizona has reported its first death from the West Nile virus this year. It also is the first West Nile death in the US this year. First bird in Nassau tests positive for West Nile Newsday Fighting West Nile Alexandria Gazette Packet KTAR.com - AZFamily - FOXBusiness - Boston Globe all 231 news articles Publ.Date : Thu, 24 Jul 2008 17:45:00 GMT afdf RSS feeds

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

Guide to Personal Secured Loans

Here is a useful guide to personal secured loans. A... Read More

Fast Cash Payday Loans

If you need cash now there are several options available... Read More

What is Credit Insurance?

Are you wondering what is credit insurance? Very simply, credit... Read More

Benefits of an Unsecured Loan

Listed below are some of the benefits of an unsecured... Read More

How to Find Bad Credit Loans UK

Bad credit loans UK can sometimes prove quite difficult to... Read More

It Only Takes a Few Simple Steps To Avoid Student Loan Debt

Student loan debt is a problem that affects many former... Read More

Thinking Of Co-Signing For A Loan? Read This First

It is quite common for someone, who is having trouble... Read More

Relax, Unwind, and Enjoy With American One Secured Personal Loans

Secured Personal Loans are those loans against which you don't... Read More

Cash Advance Payday Loans

The ads are on the radio, television, the Internet, even... Read More

Secured Loans Tips

Here are some useful secured loans tips. Secured loans enable... Read More

Should You Get A Pay Day Loan?

Whether you have good credit, bad credit or no credit,... Read More

A Look at Common Types of Loans

People sometimes wonder about common types of loans, especially with... Read More

What is a Tenant Loan?

Ever wondered what is a Tenant Loan? A tenant loan... Read More

Poor Credit Mortgage - Overcoming Financial Slumber

There is a huge market for homeowners who have credit... Read More

Seven Tips For Credit-Enhancing Your Business Loan

What are the avenues available to businesses with weak credit... Read More

What are Personal Loans?

As the term implies, Personal loans are simply loans for... Read More

User Guide to Payday Loan Terminologies

Are you approaching towards a payday loan cash advance? Is... Read More

Shopping for a Secured Personal Loan

If you find yourself looking for a loan, you'll likely... Read More

Cant Wait For Payday? Try Check Advance

Check advance can come in really handy when you're waiting... Read More

Payday Loans - Ways to Keep Your Costs Low

Payday loans offer a fast and easy solution to financial... Read More

Cash Advance Payday Loans: Yes The Rates Are Higher!

Typically Cash Advance Payday Loans have no credit checks, and... Read More

Government Loans for Beginners

Government loans are those that the government of a country... Read More

A Beginners Guide to Bad Credit Secured Loans

Here is a useful beginner's guide to bad credit secured... Read More

A Beginners Guide to Low Interest Debt Consolidation Loans

Looking for low interest debt consolidation loans can sometimes seem... Read More

What is Credit Scoring?

Have you ever wondered what is credit scoring? Credit scoring... Read More