Comparing Factoring Benefits - Which Invoice Factoring Company Should You Choose?

Apples to Apples – Which Invoice Factoring Company Should You Choose?

Compare key components found in factoring proposals including factoring advances and fees, client obligations and invoice factoring company benefits.

Key Components of Invoice Factoring Proposals

The key components that you will find in proposals for invoice factoring services generally come down to three things: The amount of factoring advances and fees, client obligations and factoring company benefits.

Here are some things to compare when choosing between invoice factoring services:

  • Advance Rates
  • Reserve Rates
  • Factoring Fees
  • Add-on Fees
  • Funding Options
  • Account Limits and Debtor Limits
  • Monthly Minimums or Factoring Requirements
  • Contract Length and Termination Clauses
  • Buy Back Stipulations
  • Factoring Client Obligations
  • Factoring Program Benefits – Factoring Company Promises

Invoice Advances, Reserves and Factoring Fees

Advance Rate

This is the amount (usually expressed as a percentage) of the face value of an invoice that the factoring company will fund when you factor an invoice.

Reserve Rate

The reserve is an amount (usually expressed as a percentage) of the face value of an invoice that the factoring company will hold back “in reserve” pending payment from your customer on a factored invoice.

Factoring Fee

This is the cost of factoring an invoice. Like the advance and reserve, it is often expressed as a percentage of the face value of an invoice the factoring company will retain as it’s fee when you factor an invoice.

Added together, the advance rate, reserve rate and factoring fee should equal 100%. Here is an example of their application:

  • Day 1 – Factor an invoice and get fast funding of 90% of the invoice amount, with 5% held in reserve and a 5% factoring fee.
  • Day 30+ – Receive the 5% reserve after your customer has paid the invoice (factoring company retains the other 5% as their factoring fee).

Introductory Advance Rates and Factoring Fees

Some factoring companies use low introductory rates or progressive fee structures that sound appealing, but in actuality represent a higher invoice factoring fee than many of their competitors.

Some factoring fees are flat – meaning a small percentage is the only cost of factoring an invoice regardless of how quick your customer pays the invoice. Other factoring fees might sound low but when reading the fine print you may discover fees are assessed weekly instead of monthly, or are progressive in some other way.

Because of this, a flat, one-time 5% factoring fee might ultimately be less costly to your business than a lower fee offered by a factoring company that assesses the fee weekly, especially if your customer takes several weeks or even longer to pay. Just like compounding interest, the longer the invoice remains outstanding, the higher your cost of financing will be. Given that payment terms are often 30, 60 or even 90 days, a competitive, one-time flat fee will often be far more economical than a low fee applied progressively.

To avoid increasing the cost of factoring, look for proposals where a one-time factoring fee is your “all in” cost of factoring. I.e., there are no additional costs for processing schedules, funding advances, maintaining your account, and so on.

Add-On and Hidden Fees

Some factoring companies have add-on and hidden fees that should be taken into consideration when comparing invoice factoring services; such as fees that will be charged for:

  • Schedule processing
  • Collection activities
  • Due diligence
  • Customer credit checks
  • Online account access
  • Account administration or maintenance
  • Funding fees (which may vary depending on method of funding)
  • Buy-backs / chargebacks

When reviewing a proposal for invoice factoring services, look beyond the advances and factoring rates to determine if there are add on or hidden costs that might drive up the real cost of invoice factoring, thereby reducing its benefits as a cash flow management tool.

In addition, your proposal for invoice factoring services should also outline the account limit (how much money the factoring company will have out on advances at any given time for all factored invoices) and account debtor limits (the amount the factoring company is willing to have out on advances at any given time for an individual debtor).

Factoring Client Obligations

As the factoring client, your obligations are any and all conditions you agree to fulfill in your relationship with the invoice factoring company (or the Factor). These terms may include personal guarantys, buy back stipulations (especially when factoring with full recourse), monthly minimums, contract termination and notification requirements, and monthly reports your company agrees to provide to the factoring company.

The terms which define your obligations as a factoring client could vary greatly, depending on which invoice factoring company’s services you are considering. Some of these obligations can radically impact how effective the factoring company’s program will be in helping to expedite cash flow for your organization.

Invoice Buy-Back Stipulations

Buy-back stipulations are conditions that require you to buy back an invoice previously factored. Full recourse factoring companies may require you to buy back invoices if they go unpaid for a set period of time, such as 30, 60 or 90 days, etc. They may also require you to buy back invoices if they are not paid due to credit reasons, such as insolvency of your customer. Buy-back stipulations may also require you to reimburse a factoring company for collections or legal activities undertaken in trying to recover unpaid customer payments.

Opting to factor with a non-recourse factoring company may afford your business additional financial protection. If an invoice that has been factored is not paid due to insolvency of your customer, in most cases the non-recourse factoring company will absorb the loss, not you. With non-recourse factoring, clients aren’t usually required to buy back invoices unless an invoice is disputed by the customer.

Factoring Minimums

Some factoring proposals require that you factor a minimum dollar amount or a minimum number of invoices each month, or may stipulate a higher factoring fee be charged if minimums are not met. Some proposals require that a client factors any and all invoices generated for a given client, or even that they factor all of their receivables.

Working with a factoring company that doesn’t require you to commit to factoring minimums can keep you in the driver’s seat, so that you can do what is in the best interest of your organization and factor only when you choose. We offer spot factoring and no-minimum factoring proposals so you can stay in control.

Contract Termination and Notification Clauses

If you decide to stop factoring or you have determined that the invoice factoring services offered by another company would be better for your business, some factoring contracts will require that you provide advance notification – sometimes as much as 120 days in advance.

Failure to meet the notification requirements might make it impossible for you to make a change without absorbing significant financial penalties, or you may have to wait another 8-9 months before you can stop factoring or change factoring companies.

Before signing a factoring agreement, find out what penalties or notification requirements will apply should you decide to stop factoring or take your business to a different factoring company. You may also look for a factoring company (like Corsa Finance) that doesn’t require you to sign a long-term contract or penalize you if you decide to stop factoring with us.

UCC-1 Filing

As a client, you should never sign a proposal that gives a factoring company authorization to file a UCC-1 financing statement on your business before you have been allowed to review all of the closing documents (e.g., factoring contracts) that will apply to the relationship.

Benefits to Look For in an Invoice Factoring Agreement

The benefits outlined in proposals for invoice factoring services that will be provided by the factoring company are the promises and perks that their clients will enjoy, in addition to expedited cash flow from factoring invoices.  This includes factoring advance rates but may encompass promises of good customer service, knowledgeable account managers, client online account access, reports, funding options, credit checks on customers, etc.

Since the program benefits provided by factoring companies may vary greatly, here are some of the benefits you might want to look for in a factoring agreement.

  • Fast funding on advances (ACH) – within 1-2 business days (or even faster)
  • Additional funding choices (wire funding, etc.)
  • Free credit checks to help you vet new customers or establish limits
  • Consistently high level of professional customer service
  • Dedicated account managers who understand the client’s business and preferences
  • 24 x 7 online account access
  • Transparency – no hidden fees
  • No application or account administration fees
  • No long-term contracts or monthly minimums
  • Spot factoring and micro-factoring
  • Competitive advances and factoring fees
  • Non-recourse factoring to reduce credit risk
  • Non-notification factoring to white label a seamless experience for your clients

Benefits of Working with the Best Invoice Factoring Companies

The primary reason companies factor invoices is to expedite cash flow, whether to meet expenses or grow an organization more quickly, and often both. When comparing invoice factoring services, take into account the extent to which the program seems designed to help you speed up cash flow so that you can reinvest in your organization more quickly.

  • The best factoring companies look for reasons to say “yes” when it comes to approving a client or approving an account debtor, even when it means looking past a credit score or list of assets.
  • The best factoring companies offer competitive rates and fees and have a program that is transparent, so that their clients are not hit with unexpected fees or surprises.
  • The best factoring companies leave more decisions up to the client so that they can do what is in the best interests of their organization.
  • The best factoring companies become trusted financial partners because they design their programs, operate and provide professional customer service – day in and day out – with a view for the long-term.

Get a free, no-obligation proposal for invoice factoring services or request more information about our programs by applying online, calling us at 866-855-6772 or completing the form below. We’ll listen to what’s most important to you and your business and work with you to design a factoring program that represents a good match, so you can stay focused on your business.

8 Ways Invoice Factoring Can Help You Grow Your Business Faster

8 Ways Invoice Factoring Can Help You Grow Your Business Faster

Is lack of working capital a problem? Grow your business faster with a financing tool that speeds up cash flow.

Business Cash Flow Financing – 8 Benefits of Invoice Factoring

Few things are more frustrating in business than watching opportunities pass you by because of a lack of working capital. In fact, lack of working capital is repeatedly cited as one of the main problems business owners face when trying to grow their business – or even just keep it afloat.

Having your organization’s growth constrained by a lack of working capital can be especially frustrating when you have assets you can’t access, such as outstanding receivables, and you find yourself waiting for customers to pay so you can take on new business. If a lack of working capital is keeping your business from growing or cash flow is a problem, invoice factoring could be an ideal cash flow financing tool for your organization.

8 Ways Invoice Factoring Can Help You Grow Your Business Faster

You can access the working capital locked up in outstanding invoices by factoring invoices instead of chasing customer payments. Having this working capital in hand, instead of on the books, could be the ideal business financing tool to enable you to:

  • Take on new business more quickly
  • Service larger customers
  • Purchase additional equipment, facilities or real estate needed to grow, expand or hire additional employees
  • Repair or replace aging or deficient assets
  • Improve cash flow to maintain a more even, predictable flow of money to meet operational expenses and fund payroll
  • Engage in strategic marketing and business growth initiatives
  • Negotiate discounts from your own suppliers or vendors
  • Extend more favorable terms to your customers to gain an edge over the competition

Our financing tools are especially appropriate for organizations that want to grow but find that cash flow is not keeping pace with operational needs. Low cash flow often creates difficulty in taking on new projects, new customers or larger accounts not because they aren’t profitable – but simply due to lack of working capital. Factoring can be used as a financing tool to unlock working capital that would otherwise be tied up in customer invoices for weeks, or even months.

Use our invoice factoring calculator to estimate the amount of working capital you could unlock by factoring unpaid customer invoices:

Our team has years of experience in factoring for a variety of industries, and now we are putting that experience to work helping our clients get tailored invoice factoring agreements, so they can maximize the benefits of this business financing tool.

We invite you tap our expertise. We will work with you to come up with a flexible plan that is customized to the financial needs of your business and the way you do business. Here are some of the advantages of factoring with Corsa Finance:

  • No long-term contracts or factoring minimums – factor only when you want to, and only those invoices you choose
  • No application, due diligence or credit check fees
  • No notification, funding or reserve release fees
  • Free funding on advances as soon as the same or next business day
  • Competitive advance rates – as high as 90 percent
  • Competitive factoring fees – factoring fees as low as 5 percent for small invoices or lower for larger balances
  • Choose full recourse, white-labeled non-notification factoring, or non-recourse factoring with additional financial protections
  • Flexible options – retain control of your own accounts receivables billing or let us do the work
  • High level of customer service to you and your customers – we want to earn your business and referrals!

When you think about all of the ways you could be growing your business if only you had access to the money locked up in customer invoices, the idea of using a financing tool that can expedite cash flow becomes even more compelling. We invite you to apply for a free, no-obligation invoice factoring proposal (even if you’re already working with another factoring company and just want to compare).

 

7 Intangibles the Best Business Invoice Factoring Companies Provide

7 Intangibles the Best Business Invoice Factoring Companies Provide

Intangible assets are real, they just aren’t physical in nature. The best business invoice factoring companies are set apart by the added value their intangibles provide.

Apart from factoring rates and advance amounts, what factoring companies do — the services they provide — are basically the same from Factor to Factor. We offer competitive factoring rates and high advances with fast funding, yet we believe it’s the things you don’t see — the intangible qualities which characterize our services — that help our clients the most.

Investopedia describes intangible assets as items which don’t exist in the physical sense, yet “are valuable because they represent potential revenue.” When comparing business invoice factoring companies’ rates and fees, it’s important to remember that the value they add in the way they do business and how they treat their clients could impact your bottom line, too.

7 Intangible Characteristics the Best Business Invoice Factoring Companies Provide

1. Speed

The goal of business invoice factoring is to speed up cash flow. When you factor with a company that provides fast approvals and fast funding, you can stay focused on your business instead of chasing customer payments or waiting on cash flow.

We know that the faster the factoring company’s team works, the more they can help you grow your business. Factoring with a company that provides a consistent, high level of customer service saves your company time and money.

2. Cost Savings

Some business invoice factoring companies advertise low factoring rates, then charge add-on fees or apply fees progressively in order to increase revenue. Unfortunately, these additional fees reduce your profits.

Our goal is to help you grow your company to the next level, so we avoid hidden invoice factoring costs that reduce your profits, from the application process to schedule processing. We offer factoring programs with:

  • Program transparency – no hidden fees
  • No application or due diligence fees
  • No charge for processing factoring schedules or notifying you that the work has been done or your account has been funded

In addition, we work with you to tailor a factoring program so that it’s well-suited to your company’s financial needs; with:

  • Competitive factoring rates – and ask about bundle discounts!
  • Competitive advances to help you unlock working capital
  • Fast, free funding

3. Trust

Some business invoice factoring companies lock you into contracts for the long term with penalties and lengthy auto-renewal clauses. We believe that the best invoice factoring companies choose to earn your trust, long term business and referrals through their performance.

We don’t require factoring clients to sign long term contracts, nor do we have factoring minimums. As the client, you stay in control so that you can always do what you think is best for your business.

4. Partnership Mentality

We want to help you grow by empowering you to take control of your cash flow, so you can take your company to the next level. From the way our factoring services let you stay in control to fast approvals and dedicated account managers who understand your needs and preferences, we want you to have  tools your business needs to become more profitable and grow.

5. A “Yes” Culture

Every business is more than a credit score or an asset list. From evaluating your application for business invoice factoring services or a potential new customer, credit limit or rate request, we look for reasons to say “yes!” and say yes quickly.

6. Added Value

We will work with you to tailor a factoring program that aligns with the unique needs of your business, instead of forcing you into a one-size-fits-all service. The best invoice factoring companies add value whenever possible, giving you added value in the form of:

  • Dedicated account managers
  • Ability to serve any-size organizations, including independent contractors and SMBs
  • Manual credit review when higher approval amounts are needed
  • Credit reporting to help you vet new customers
  • A growing library of articles and tools on our blog to help with business growth, many specific to your industry
  • Partnerships with other alternative financing companies to make sure you find the financing tool that is most appropriate for your business

7. Flexibility

Corsa Finance is unique in being able to offer multiple types of factoring under one roof, including:

  • Non-notification factoring with a white-labeled factoring program that provides your clients with a seamless customer experience
  • Full recourse factoring
  • Non-recourse factoring that offers additional business protection by limiting your credit risk from bad debt
  • Spot factoring for a company that wants a one-time or only very occasional factoring solution
  • Micro-factoring for small companies and independent operators that other factoring companies might not consider

If you’re ready to work with one of the best invoice factoring companies in the U.S., we would love to partner with you and help you grow your business. Apply online or request a free, no-risk factoring proposal by calling 866-855-6772 or completing the form below.

The Benefits of Non-Recourse Factoring

What is Non-Recourse Factoring?

When an organization is considering expediting their cash flow through accounts receivable factoring it is important for that organization to understand the value that is provided by choosing to work with a non-recourse factoring company.

Comparing non-recourse factoring to factoring with full recourse shows some of the benefits of choosing a non-recourse factoring company.

Beyond Factoring Fees and Advances – The Benefits of Non-Recourse Factoring

When a business is comparing quotes for factoring services, they are often solely focused on the fee that will be charged or the advance rate they will receive on factored invoices. But fees and advances are just the tip of the iceberg. Astute business owners will also look at the additional benefits provided to them by choosing to work with a non-recourse factoring company in order to reduce – or even eliminate – their financial risk from bad debt.

First, an invoice factoring (a.k.a. receivables factoring) primer. Invoice factoring is a finance tool that can be used by organizations that invoice business customers upon delivery of goods or completion of services.

When an organization (called a “factoring client”) factors an invoice, they sell it to a factoring company, or “Factor”. The Factor that buys the invoice provides the factoring client with an advance on the invoice (we offer fast funding on advances as high as 90 percent of the face value of the invoice) for a small fee (our factoring fees start at 5 percent).

Using invoice factoring, your organization gains immediate access to cash flow that might otherwise be tied up in a customer invoice for weeks – or even months. With improved cash flow, you can take on new business more quickly and ensure that money will be on hand to meet operating expenses.

There are other benefits to factoring invoices as well. Organizations that choose to factor invoices might do so for a variety of reasons; such as:

  • speeding up cash flow in order to take on new business more quickly
  • maintaining more consistent cash flow in order to meet expenses more easily
  • reducing costs (payroll, supplies, mailing, etc.) attributable to receivables activities, including collections costs
  • eliminating cash flow challenges caused by slow-paying customers
  • extending longer payment terms to customers as a competitive advantage
  • or to resolve other common cash flow challenges

Comparing Non-Recourse Factoring to Recourse Factoring

As it pertains to a factoring company, the word “recourse” references the extent to which the factoring company is willing to assume risk of non-payment on factored invoices.

Recourse factoring companies fund advances on invoices with the understanding that the organization will be obligated to buy them back if they go uncollected (for any reason). If an invoice remains unpaid for a certain period of time, the factoring client may be required to buy it back and may also be obligated to compensate the factoring company for administrative and collections costs incurred while trying to collect payment from the organization’s customer. Reduced financial risk for the factoring company sometimes means factoring with recourse offers lower rates, but not always.

Non-recourse factoring companies assume more financial risk from bad debt than those that factor with recourse. When a non-recourse factoring company buys an invoice, the Factor assumes the credit risk. If the factoring client’s customer is unable to pay due to insolvency and other credit-related risks, the non-recourse factor assumes the financial loss.

Organizations that factor invoices with a non-recourse factoring company can reduce, or even eliminate, their financial risk from bad debt, since the non-recourse factor assumes the credit risk. Generally, the only time a factoring client would be required to buy back an invoice from a non-recourse factoring company would be in a case where the invoice itself is in dispute, such as when an order has been returned for some reason.

How the Factoring Process Works with Non-Recourse Factoring Companies

Working with a non-recourse factoring company is important to many of our clients. They use factoring services to free up working capital in order to operate more efficiently and grow more quickly. But they also enjoy the peace of mind of knowing that, once an invoice has been factored, they no longer need to worry about financial risk from bad debt, performing collections activities or even invoicing the customer, depending on their factoring agreement.

Get a Free Quote for Non-Recourse Factoring

We would be happy to answer any questions you might have about invoice factoring with a non-recourse factor or provide you with a no-risk, free, no-obligation quote for non-recourse factoring services so that you can determine whether this type of finance tool would benefit your organization.

Ready to apply? Complete a one-page application online or request more information about non-recourse factoring using the form using the form below.

3 Innovative Recruiting Ideas for Staffing Agencies

3 Innovative Recruiting Ideas for Staffing Agencies

The recruiting and staffing landscape has never been more competitive. Agencies that want to land the best candidates need to stand out from the rest; these three innovative recruiting ideas for staffing agencies can help.

Innovative Recruiting Ideas for Staffing Agencies Can Set Your Services Apart

You aren’t likely to come across a job posting from a company or a staffing agency that says “ho-hum candidates wanted.” Without an innovative approach, however, your staffing agency runs the risk of looking just like all the rest, and that “rest” is growing quickly. The staffing industry grew by 4 percent in 2018. With the economy at full employment – and more job openings than jobs – the recruiting competition for staffing agencies in 2019 is tougher than ever before.

You might be concerned that your agency will have to spend a lot of money on advertising or gimmicks in order to become more successful at attracting top candidates. However, these innovative recruiting ideas for staffing agencies can help set your services apart, and they don’t have to break the bank to deliver a big return on investment.

3 Low-Cost Innovative Recruiting Ideas for Staffing Agencies and Recruiters

1. The Power of a Voice

Today’s technology makes it easy for everyone to see information all the time, but at the same time makes swiping information and updates away or deleting information from an inbox equally easy and immediate. Within seconds, people decide whether to read an update, comment or click on an image. Sites like LinkedIn make it possible for prospective candidates to find and connect with company and agency recruiters instantly; indeed, it’s not uncommon to see updates about position openings throughout the news feed on LinkedIn and other social platforms.

All of these voices have power, especially when updates come from people a prospective candidate knows personally, or when a “real employee” lends their voice to the recruiting effort by sharing a job post or positive reviews about what it’s like to work for their employer.

When information comes from a reputable voice a candidate will be more likely to click on the content, which then takes them to a company’s job posting or career site. The power of a voice – a real employee’s esteem for the organization they call home, can play a critical role in helping to engage and attract top talent to impact the future of the company.

2. The Impact of Personal Stories

For every job opening there is an employer, title, description and salary. While all of these can get the attention of talented candidates, it’s the culture of the organization, the growth opportunities for an employee, the neighborhoods where they might live or work, and the added perks that make life a little bit sweeter that truly engage.

Many companies recognize this is an advantage to gaining top talent, and so seek to engage candidates using short funny or inspirational videos in order to give prospective hires a peek behind the curtain. Although professional video production can be expensive, the cost to make your own short videos runs the gamut from free (using a cell phone, webcam or owned equipment) on up.

Amazon has released many videos that give candidates insights as what it’s like to be a part of the culture and what they to expect working at Amazon on a daily basis, such as this one titled What is it like to work at Amazon: Go Beyond the Badge with Janna.

This video was published in May of 2015 and since then has garnered more than 18,000 views. Another Amazon example is a video that talks about Seattle, where the company is headquartered, focusing on the e-commerce giant’s relocation package and why Seattle is a great place to live.

3. The Prove It Test

A “prove it test” is any type of test a recruiter might use to determine whether an applicant has the skills needed to succeed in a given role. When you combine the idea of a prove it test with a personal challenge, you create intrigue that can motivate ambitious, talented candidates to take action. Think of this as one of the few times “if you build it, they will come” might actually work.

In one example, when Google was recruiting engineers they put up billboards that simply had a white background with an algorithm listed. Those who responded on their website with the correct equation and then succeeded in additional problem solving online were then redirected to a final recruiting page. Giving proof to the message displayed to those who reached the final recruiting page that “One thing we learned while building Google is that it’s easier to find what you’re looking for if it comes looking for you,”

Google has continued to use unconventional recruiting techniques in order to attract the uniquely talented employees they are looking for. In another instance, the MGM hotel in Vegas put together their own version of the reality show Iron Chef to test the mettle of applicants for a top chef job at one of their best restaurants (MGM and Iron Chef Contest).

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Staffing Agency Factoring and Staffing Payroll Funding Services

We offer staffing agency factoring services and staffing payroll factoring with low fees – as low as 5% – plus free same day funding, with advances as high as 90%. Get a free, no-obligation quote to compare against your current factoring program or find out how our staffing agency factoring or payroll funding could help you grow your agency more quickly.

5 Benefits of Using a Staffing Agency to Improve Quality of New Hires

Staffing All the Way to the Bank – 5 Benefits of Using a Staffing Agency

Hiring costs for even an entry-level employee might be several thousand dollars. Here are five benefits of using a staffing agency that make them an invaluable resource for hiring managers.

Steep Recruiting and Hiring Costs Highlight Benefits of Using a Staffing Agency to Get Better New Hires

For hiring managers and business owners, turnover is a four-letter word. The cost of recruiting, hiring and training new staff – even entry level staff – can run into the thousands of dollars. In fact, data recently published on Investopedia.com indicates that the real cost of hiring a single employee at just $8 per hour could be as much as $3,500.

Of course, that’s only the cost of making a good hire. The Society for Human Resources Management (SHRM) estimates that the cost of making a bad hire could be as much as 5x their annual salary, and that number goes up the longer they remain in the position.  Among the benefits of using a staffing agency are reduced direct costs when it comes to hiring activities and the ability to get better new hires from the start.

5 Benefits of Using a Staffing Agency to Improve Quality of New Hires

1. Focus

Working with a staffing agency allows your team to stay focused on the tasks and tactics that make your business most profitable. With fewer tasks to be completed in-house, distractions are minimized. Let a staffing agency do the busy work of filling your candidate funnel and eliminating those who are not qualified or who are not likely to be a good fit for your company’s culture.

2. Expert Advice

Staffing agency recruiters are trained and experienced experts who can efficiently sift through the hundreds – or even thousands – of responses your job posting may solicit and bring you a short list for consideration. What’s more, their insights about candidates or their resumes can be invaluable in helping you decide which candidates should make the cut and move on to an interview.

3. Better-Informed Candidates

Few things are more frustrating within the recruiting and hiring process as moving a candidate all the way through the process to the point of making an offer, only to discover that they had unrealistic expectations about the job, its salary range or responsibilities. One of the benefits of using a staffing agency is that they give candidates information about your company and the position ahead of time, so that candidates who want to self-select out of the process for any reason can do so, saving you time and resources in the process.

4. Pre-Screened for the Fast Track

Recruiting and hiring processes can take months! You can short-cut the process by working with staffing agencies who have already recruited, interviewed and pre-screened candidates who can be in place within a day or two, instead of weeks or months.

5. Try Before You Buy Options

Having the ability to work with candidates on a trial basis as temporary employees placed through a staffing agency gives you the opportunity to bring in top talent and see how they fit within the team and perform without making a long-term commitment. It can be equally positive for candidates themselves as they have a chance to find out whether the job and your corporate culture is a good fit for them. If you have experienced the pain and high cost of making a bad hire, this reason alone might make the benefits of using a staffing agency preferable to doing the recruiting and hiring yourself.

Benefits of Using a Staffing Agency – Calculating the Cost of a New Hire

The cost of a new hire is far greater than the cost of posting position openings or running a new hire screening, and not all costs can be measured in dollars. For instance, how can you calculate the negative impact of turnover on an understaffed department, or time lost to productivity when new hires are shadowing other employees?

If you are trying to come up with the real cost of recruiting and hiring in your organization in order to weigh the benefits of using a staffing agency against completing the work in-house, here are some costs to consider:

  • Time spent writing job post ad copy
  • Time spent researching job boards, social networks and publications for placements
  • Cost of placing position openings in print and online job boards
  • Time spent reviewing submissions, monitoring all placement channels and responding to applicants
  • Resources (time, money and materials) spent on written responses to applicants
  • Time spent doing pre-interview phone screenings and setting up interviews
  • Time spent conducting interviews and lost productivity for interview participants
  • Time spent conducting reference checks
  • Time and resources spent on pre-employment screening/s
  • Food, beverages, lodging or travel costs
  • Cost of reimbursement for parking or transportation

It’s a lot! When you begin to tally up the cost of time spent on-boarding new hires, doing paperwork, setting up payroll and benefits, completing training and lower productivity while they get up to speed, you can begin to understand the high cost of employee turnover and better appreciate the benefits of using a staffing agency, especially when it comes to improving the cost of new hires.

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Corsa Finance offers competitive staffing factoring rates, high advances and fast funding. If you are looking for a staffing payroll funding company or staffing factoring services, we invite you to get a free, no-obligation quote. You could go from approval to your first funding in a few hours!

The Hidden Costs of Invoice Factoring

The Hidden Costs of Invoice Factoring

Six hidden costs of invoice factoring could make factoring invoices more expensive and less beneficial as a cash flow management tool.

6 Hidden Costs of Invoice Factoring Reduce Benefits and Drive Up Cost

When comparing the invoice factoring proposals of U.S. factoring companies, remember to look for additional costs and add-on fees in addition to the factoring fee that is being offered.

These fees and charges may seem small but when you do the math you can clearly see that they quickly eat into your business’ profits and jack up the real cost of invoice factoring.

1. Add-On or Administration Fees

Though it seems like administrative services should be part of the service provided, some invoice factoring companies tack on extra fees for the administrative tasks that are part of the invoice factoring process.

Any add-on cost drives up the real cost of invoice factoring. Some of the other hidden fees factoring companies might tack on include things like:

  • Application fees
  • Proposal fees
  • Due diligence fees
  • Credit check fees
  • Notification fees
  • Schedule processing fees
  • Invoice processing fees

We don’t charge any application, due diligence, credit check or account set up fees that drive up the cost of factoring. Nor do we assess extra fees to process paperwork, transfer funds or notify you of account actions. We view these types of tasks as intrinsic to the invoice factoring process, not as add-ons.

2. Long Term Contracts

Some factoring companies require clients to sign long-term contracts that might range from 6, 12, or even 24 months, and harbor strict renewal and notification clauses. If a client doesn’t adhere to the contract’s conditions or needs to be released from the contract before the terms are up, significant penalties are often assessed.

We don’t require clients to sign long-term factoring agreements, so they aren’t locked into an agreement that may no longer be right for their business. We believe the best factoring companies earn their clients’ continued patronage through professional customer service and outstanding performance, not long-term contracts with stiff penalty clauses for leaving.

3. Monthly Minimums or Other Minimum Factoring Requirements

Some factoring companies require clients to commit to factoring a minimum number or dollar amount of invoices every month or every quarter. If they fail to meet these minimums a penalty fee is assessed. Being locked in to factoring minimums may not be what is best for an organization. Factoring is a financing tool meant to help an organization grow more quickly, but mandated factoring isn’t always what’s best for a business. We don’t require clients to commit to factoring minimums. They have the freedom to factor only when it’s best for their business.

4. Introductory Rates, Fees or Other Conditions

Some factoring companies offer low introductory rates to new clients, then down the line they lower advance rates and raise factoring fees, quickly wiping out any savings enjoyed during the introductory period. In other cases, factoring companies offer what sounds like a low fee, but fine print reveals the fee is applied weekly or progressively, which then also costs the client more. We value transparency and simplicity. As our client, you will know what your advance rate and factoring fees will be from the outset, so you can make financial decisions in the best interests of your organization.

5. Lost Customers

When an organization factors invoices, the relationships they have with their customers may also be impacted by the factoring company they chose to do business with. A factoring company that engages in strong-arm collections tactics or pressures customers to pay more quickly could result in lost customers for a business. We view factoring as a tool our clients can use to grow their business and we want clients to use our services for as long as it benefits their bottom line. This view to the long term means we extend a high level of professional, courteous customer service to our clients’ customers as well.

Another way we help improve cash flow without jeopardizing customer relationships is through non-notification factoring. With non-notification factoring, the customer may never know an company is utilizing invoice factoring because the process is white-labeled to the organization almost completely, providing a seamless customer experience.

6. Recourse Factoring Buy-Back Stipulations

Most U.S. factoring companies factor invoices with recourse. Organizations that factor with full-recourse may be required to buy back an invoice at its full face value if a customer does not pay within a given period of time, if the customer cannot pay due to insolvency or for any other reason.

We do offer full-recourse factoring, but we also offer non-recourse factoring services that help minimize the organization’s risk from bad debt. With non-recourse factoring, we assume the credit risk for the invoices factored by an organization, and (in most cases) absorb the loss if a customer is unable to pay.

Eliminate the Hidden Costs of Invoice Factoring

Transparency with our customers is one of our guiding values. We are proud to offer receivables financing that is free of the hidden costs of invoice factoring, including the add-on costs some other factoring companies use to produce additional revenues. Ideally, your factoring fee will be your “all in” cost of financing.

Since it is likely your intention to utilize invoice factoring to speed up the incoming cash flow from invoices currently on your books (and thus get that working capital back into your business more quickly) it stands to reason you should compare the advance amounts and factoring fees offered by factoring companies (or Factors). As an educated, astute shopper of these services, you should never sign on the dotted line until you know exactly how the program works, all the fees that may apply, and how factoring your invoices could impact your profitability.

If you have questions about your factoring contract, want a quote for comparison or would like to find out more about our services, request a quote. We will be happy to provide you with a factoring proposal which you can compare against your current agreement.

6 Invoice Factoring Benefits Can Turn a Small Business into a Big Player

6 Invoice Factoring Benefits Can Turn a Small Business into a Big Player

If your small business invoices its customers using accounts receivable invoices, invoice factoring benefits could help you turn your small business into a big player – in nearly any B2B industry in the US.

Competitive Advantages Among Invoice Factoring Benefits for Small Businesses

Often, a small business can provide a higher, more personalized level of service to its customers than its larger competitors; but this does not always translate into a true competitive advantage for one simple reason: bigger organizations have access to more working capital.

While a small business may be waiting for customers to pay or resources to be freed up, larger competitors already have the money needed to invest in the next project, shipment or production run as well as spare resources at the ready to carry them out.

When it comes to cash flow, why play the waiting game?

By factoring invoices instead of chasing customer payments, a small business can gain access to the working capital tied up in open receivables, without waiting for customers to pay. This could give your small business or startup the edge needed to compete with large rivals in order to take on new orders more quickly, fulfill larger orders or serve larger customer accounts.

6 Invoice Factoring Benefits for Small Business

1. Reducing Overhead and Expenses

Your invoice factoring company can handle your receivables from beginning to end if that’s what works best for you. Your organization reaps the savings in overhead for the time, money and personnel that would be needed to first generate invoices then the time and energy to track and receive payments.

2. Eliminating or Reducing Bad Debt Risk

Many factoring companies provide clients with access to commercial credit checks on both new and existing clients. This gives you, the business owner, added peace of mind in trusting that you will be paid for the goods and services delivered by your company. You can vet new customers for credit worthiness and periodically reassess customer limits.

Working with a non-recourse factoring company gives your small business additional financial protection. When you use non-recourse factoring, the factoring company assumes the credit risk for the invoices we factor. If one of your customers can’t pay their invoice for credit-related reasons, the factoring company absorbs the loss, not your business.

3. Giving You Leverage with Suppliers and Vendors

Having working capital in hand (instead of only on the books) provides you with leverage you can use to negotiate better terms, including cash discounts or volume discounts with your own suppliers and vendors.

4. Improving your Credit Rating

Since factoring invoices gives you more predictable, steady cash flow, you can pay your bills on time or pay down debt more quickly, which can help to improve your business credit score and may help you improve your personal credit score as well.

5. Reducing Unnecessary Expenses

If you are forced to wait for customers to pay invoices before you can pay your own bills or creditors, you may also incur late fees and additional interest charges. Factoring invoices so that you have the money needed to pay your bills, loan payments and other expenses on time means that you won’t incur unnecessary late fees and interest.

6. Giving You Access to More Business Growth Resources

Our goal is to help you grow your organization from where it is today to where you want it to be tomorrow. From your account manager to the business resources and articles you’ll find on our website and blog, we continually work to provide our clients with more resources they can use to grow.

Bring invoice factoring benefits to your small business.

Get a free, no-obligation quote – you could go from approval to your first funding in hours. 

Which Came First - The Chicken or the Cash Flow Problems

Which Came First – The Chicken or the Cash Flow Problems

Whether or not you deploy invoice factoring or other financing tools to resolve cash flow problems, drill down to the root of the problem to prevent it from impacting your growth again in the future.

Cause or Effect? Exploring the Relationship of Common Business Challenges and Cash Flow Problems

“Access to capital” is commonly cited among the top cash flow problems for small business owners and startups, in particular. But often low cash flow is a symptom, not the cause.

We just published an article which listed the top ten reasons B2B startups fail – or fail to thrive – during their early years of existence. While “access to working capital” was not specifically listed among the reasons, many of the reasons that these small businesses failed tie back to cash flow problems in some way. So much so that someone on LinkedIn asked why “access to capital” was not on the list:

“Good info to share. I have read several articles that say the #2 reason for failure is the lack of revenue / cash flow / financing.”

Is inadequate cash flow the cause or just the symptom when things are going sideways in a B2B startup or young business? It’s sort of a “which came first, the chicken, or the egg?” type of question. It’s easy to point to lack of working capital or slow cash flow as the problem, when actually, cash flow problems are the result of another issue whose roots lie elsewhere.

Here’s another look at the list we shared, along with an analysis of what symptoms might be present within a business experiencing the same type of challenge, along with steps you can take to address the challenge if you discover it in your organization.

More than Cash Flow Problems: Warning Signs of the Top 10 Challenges that Derail Startups and Small Businesses

Emotional Pricing and No Understanding of Pricing (#1 and #4 on the list)

If goods or services aren’t priced high enough to produce the margins needed for a business to be profitable, it can quickly result in low cash flow. Conversely, if products are priced too high it can result in inadequate volume of sales needed to produce the revenues required to meet operational needs (and result in low cash flow).

You may be able to fix your pricing strategy by conducting some competitive research or establishing a value proposition that resonates with more buyers. You may also need to determine whether there is an adequate number of buyers in your target markets to support a particular product or service; if the market is inadequate, it might be necessary to scrap or table the item for the time being.

Living Too Large (#2 on the list)

Many entrepreneurs become small business owners out of a desire to build a better life for themselves, and it’s understandable that they (or their investors) would want to enjoy the fruit of their labor. Low cash flow can be symptomatic of the removal of too much operating revenue by an owner or investors. This challenge can be addressed through proper financial planning and having controls in place (or the self-discipline required) to ensure that the business retains the revenues it needs for day to day operations and growth initiatives.

Not Paying Taxes and No Experience in Record-Keeping (#3 and #7 on the list)

Many tax preparation professionals have a number of clients who are also sole proprietors and small business owners, and nearly all could probably tell you a story about doing taxes for a small business owner who had failed to set aside money for state or federal taxes. Not paying taxes at all, or not paying enough in taxes is a sure-fire way to hurt a small business.

We have included lack of experience in record-keeping here as well because both non-payment of taxes and poor record keeping are related; and both can find fixes in working with a professional accountant or bookkeeper in order to ensure that the paperwork is done right and taxes are filed and paid on time.

Both can also result in low cash flow; and in particular, as you work through your pricing strategy, it’s important to include projected tax expenses as you calculate margins and set prices for your goods or services.

Lack of Planning (#5 on the list)

Lack of planning can negatively impact any number of areas within a small business. Lack of planning could result in stocking too much or too little inventory. Lack of planning could result in having too many staff on board or not enough personnel. Some small business owners are inherent planners, others are more inclined to be visionaries. Some see the big picture, others the details.

One important thing for any business leader to remember is that it’s rare for any one person to have all the skills, abilities and inclinations needed to do everything that needs to get done in the business – and do it all well. This challenge can be addressed by hiring to your inadequacies, finding good mentors and recognizing where you need help (instead of trying to do everything yourself).

The bottom line: If planning in many or even just one vital area of your business is not your strong suit, don’t be afraid to ask for help.

No Understanding of Financing and Inadequate Borrowing (#6 and #10 on the list)

Meeting with a business finance expert as you launch your organization and as you grow can help to ensure that your finances will be correctly set up and understandable. Clarity in this area can help you identify problems as they emerge, before they hurt your business, and while there is still time to act to resolve them.

Additionally, it’s important for small business owners and entrepreneurs to understand that there are financing alternatives available that can help resolve common cash flow challenges. For instance, we offer business financing programs that can help small businesses with low or slow cash flow, including receivables invoice factoring that allows an organization to “speed up” collection of customer invoices in order to create more consistent cash flow and take on new business more quickly.

Poor Credit Granting Practices (#8 on the list)

As with setting prices, organizations can make the mistake of extending terms that are too generous, thus affecting cash flow because customers take a long time to pay or they can make the mistake of setting customer terms that are not generous enough, so that competitors look more attractive to their customers.

The good news for companies that invoice their customers after delivering goods or performing services is that invoice factoring can alleviate this challenge altogether. When companies factor invoices, they can receive payment on a customer’s invoice the same day the invoice is generated, without waiting for customers to pay.

Expanding Too Fast (#9 on the list)

When organizations try to expand too quickly, they often deplete resources (including working capital) to the point that the business may have trouble meeting operating expenses. This is another instance where simply working with a financial planning expert and creating a manageable, controlled plan for growth can prevent the problem from occurring.

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Get more information about how invoice factoring can speed up B2B organizational cash flow:

6 Reasons to Revise Your Receivables Factoring Agreement

6 Reasons to Revise Your Receivables Factoring Agreement

As your business changes and grows, its financing needs will too. Here are six signs you should have your receivables factoring agreement reviewed and re-quoted.

6 Signs You Need a New Receivables Factoring Agreement

As with any other supplier or vendor, it’s only natural that you will review your invoice factoring agreement from periodically to ensure you have a factoring agreement in place that’s best for your business. Here’s why “now” might be a good time to take a fresh look at your agreement and your receivables factoring company.

1. The end of the invoice factoring contract term is approaching.

Just as you would review any other type of contract, before you renew your receivables factoring agreement you should review it and compare it against other offers. Factoring companies might be willing to eliminate unwanted clauses or offer you better terms or rates – or you may find that another factoring company is willing to do so.

You should pay very close attention to the fine print in your current agreement that would require you to provide your current factoring company with 30, 60, or even 90-day notice to terminate your agreement. Unfortunately, if you miss the termination window you may be forced to continue factoring with the same organization for another year or more.

What is receivables financing?
Receivables financing (also known as accounts receivable invoice factoring) is a business finance tool that provides your organization with immediate access to money owed to your business by your customers, without waiting weeks – or months – for the invoices to be paid. Find out more about Receivables Financing.

2. Increases in factoring fees or rates.

Since improving cash flow is an important priority for most businesses that factor receivables, when profits are negatively impacted by increases in costs or rates it’s important to evaluate whether your current agreement is the right one for your organization.

3. Disappointment with the customer service your receivables factoring company provides.

Poor customer service impacts more than just the client who is factoring invoices, it often affects their customers as well. When evaluating how satisfied you are with your factoring company, you may also wish to speak with some of your most valuable customers to ensure that the communications and collections being conducted by your factoring company are also beneficial to the relationship between your business and its customers.

Our goal is to provide the level of service that leads to high client retention and referral rates. We want clients to choose to stay with us throughout the time they employ invoice factoring as a finance tool and to feel comfortable referring colleagues to us on a regular basis.

4. Hidden fees are adding up.

An invoice factoring fee (usually a percentage) is only one of the potential costs that could be hiding in an invoice factoring agreement. We will review any agreement presented to you to explain the fee structure.

We help our clients get factoring contracts that are transparent and simple, with factors that don’t tack on fees for administrative work, schedule processing, proposals, due diligence, customer credit checks or notifications. Hidden fees might seem small but can quickly add up and negate some of the benefits that factoring invoices should be generating when it comes to your organization’s cash flow and working capital.

5. Not meeting monthly minimums (you want to factor fewer invoices).

If your current factoring agreement requires that you factor a minimum number (or amount) of invoices each month and you find that you do not need to (or do not want to) factor up to the minimum, it is a good time to reach out for new terms from your factoring company or to explore competitive proposals.

We have clients who want to use factoring only when its right for their business with contracts that enable them to factor as many (or as few) invoices as they desire. We believe that letting factoring clients retain control of these types of decisions is important, because it has a big impact on their organization as well as how satisfied they will be with our receivables financing service. Invoice factoring becomes an even more practical and helpful financing solution when you stay in control.

6. You simply don’t want to be locked in to a long-term contract.

Depending on the agreement you choose, you won’t have to sign a long-term factoring contract. Remember that this can be a matter of negotiation which could encourage Factors to offer you an agreement with lower rates, higher advances or some other perk.

We want to earn your business and referrals. We believe that once work with us you’ll be so pleased with the level of professional and personal service that you won’t want to leave. If at any time, you feel that the level of service provided by our team isn’t meeting your needs anymore, you’re free to leave without the fear of a long-term contract or exit penalties hanging over your head.

Ready to get a new receivables financing quote?
Whether this is your first request for an invoice factoring proposal or you’re already factoring invoices, we would be happy to give you a free, no-obligation invoice factoring proposal – you could go from approval to funding in days.

Selling on Amazon - 6 Ways to Get Your Brand Selling on Amazon

6 Avenues for Selling on Amazon

Selling on Amazon is a great way to get into e-commerce, especially if you want to sell products online but do not have the desire (or means) to build out your own selling platform, apps and online store.

6 Ways Amazon Vendors Get Started Selling on Amazon

If you choose to sell on Amazon, you gain instant access to millions of shoppers – 95 million in the U.S. alone – with the ability to list products for sale as soon as they are available, with just a few clicks. There are many benefits and few risks in choosing to sell through an online powerhouse like Amazon, a company that has been ranked #1 by its customers in customer satisfaction in the Foresee Experience Index Top 100 Brands and Holiday Editions (even coming in ahead of customer service powerhouses Nordstrom, Tiffany and other luxury brands) for nine consecutive years.

Whether you are an individual who makes unique handmade items or you own a brick-and-mortar business and are looking to become more competitive by selling your products online you will have no problem finding a selling tool from Amazon that will work for you.

Selling on Amazon – Amazon Vendors

Vendors who want to start selling on Amazon can start small by selling as an Individual or go all out with a Professional subscription:

Sell as a Professional

  • More than 40 items a month
  • $39.99 per month + applicable selling fees
  • Currently receive 1-month free subscription
Sell as an Individual

  • Fewer than 40 items per month
  • No monthly fee
  • $0.99 per sale + applicable selling fees

 

Before you register, decide what products you would like to sell. There are more than 20 product categories that are available to all sellers and at least 10 more exclusive categories for Professional Sellers. Sellers can list items for sale in any of the 20+ general categories without Amazon’s approval but must submit items that apply to exclusive categories for Amazon’s approval.

Once you decide which plan is right for you, register and start listing! Once you register you will follow a simple, four-step process.

  1. List your items. You can list them one at a time or use bulk tools to add large batches of items if you have a Professional selling subscription.
  2. Customers can see your listed items as soon as they are up on Amazon.com. Many Amazon customers use tools like one-click purchasing to make quick, worry-free purchases. Make sure that your offer is listed accurately and only use high-quality images of your products.
  3. Amazon will notify you when an order is placed for one of your products. You can handle the shipping yourself or use Fulfillment by Amazon.
  4. Get paid! Amazon will deposit your earnings into your bank account at regular intervals and of course notify you when your payments are sent.

Product sales made quickly and easily with Amazon will only serve to grow your business. Both Professional and Individual sellers can add new products to the Amazon catalog, have Amazon handle customer service, shipping and fulfillment (with Fulfillment by Amazon) and sell products in the U.S. and Canada. Professional sellers can also use bulk listing and reporting tools from the Amazon Marketplace Web Service, customize their shipping rates and offer special promotions and gift wrap options for products in certain categories, and their products are eligible for top placement on product detail pages.

 

Fulfillment by Amazon

Vendors selling as Individuals or Professionals are both eligible to use Fulfillment by Amazon. When sellers participate in this program, Amazon acts as warehouse, distribution center, shipping and customer service departments, leaving business owners free to focus on other activities. This can be a great solution for scaling a business and reaching more customers without making huge investments in warehouse, transportation and shipping solutions.

 

 

Selling on Amazon Business

If you are a manufacturer or distributor you can list your full selection of products and reach millions of business customers by selling on Amazon Business. As an Amazon Business vendor, you can customize your offering with access to pricing, brand-building and business profile features tailored to the needs of your organization. Amazon Business vendors can also utilize Fulfillment by Amazon, integrated inventory and listing tools, and multiple advertising options.

 

Selling on Handmade at Amazon

Amazon launched a category for people and organizations that sell handmade items in 2015 called “Handmade at Amazon,” which is comparable to powerhouse e-commerce site Etsy.  In addition to product pages, sellers also get to create and publish their own Artisan Profile to tell the story behind their handmade goods and the passion they have for the hand-crafted products they offer on the platform. Their pages are housed behind a custom URL which they can use on their websites, social networks or even their business cards to connect shoppers with their wares.

selling on handmade by amazon

Sellers using Handmade at Amazon receive the same great support and brand exposure that other Amazon sellers receive as a result of this partnership, for which Amazon charges a 12 percent referral fee for goods sold through the platform. The products sold on the platform appear alongside all of the other products offered on Amazon for a seamless shopping experience and sellers also have the option to pay to sponsor products or run promotions through Seller Central. As an added benefit, Sellers can even earn up to 10 percent back on Amazon sales that are generated from visits to their personal websites.

To qualify, products available in a Handmade by Amazon store must be entirely hand-crafted by the artisan or within a company of 20 or fewer employees. The platform is currently home to artisans that produce Jewelry, Home products (Art, Baby Bedding, Bath, Bedding, Furniture, Home Décor, Kitchen & Dining, Lighting, Patio, Lawn & Garden, Storage & Organization), Party Supplies and Stationery, but the platform may add new categories in the future.

Selling Services on Amazon

Selling Services on Amazon allows top Pros, like Assemblers, House Cleaners, Handymen, and more, to sell professional services directly to Amazon customers in their area. People looking for services in their area connect with providers via the Selling Services on Amazon App. Services sellers are required to provide all applicable licensing and carry a minimum general liability insurance. There is no cost unless you actually provide services to someone who hires you through the app, at which time Amazon processes the payment and collects their portion of the fee (examples on the site range from 15-20%, or 15% of recurring services).

selling services to consumers on amazon

Selling Apps on Amazon

From it’s main selling platform to Alexa, the Amazon AppStore and Dash Services, Amazon is building an impressive app collection of its own. It also offers app developers the opportunity to sell their app through the AWS Developer Center, making it easier not only to market your app but even to build it.

selling apps on amazon

Additional Perks for Merchants via Amazon Pay and Advertising

And while not officially avenues for selling on Amazon, you can also Advertise on Amazon using sponsored products, sponsored brands or stores (multi-page destinations for online shoppers). Amazon also makes it easier to accept payments through Amazon Pay, which enables shoppers on your website to make purchases with the payment information they have stored in their Amazon shopper accounts. Currently, domestic fees for payment processing are 2.9% + $0.30 per transaction, roughly equivalent to that of Paypal and other 3rd party payment processors.

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Expediting Amazon Vendor Payment Terms

Amazon provides vendors with paralleled reach and access to customers in the U.S. or worldwide. However, Amazon vendors may wait up to 60 days or more from the time products sell for Amazon to forward payment to them.

Amazon vendor factoring services make it possible for Amazon vendors to receive payment on goods sold the same day statements of future payments are generated, giving manufacturers, distributors and others who sell on Amazon the ability to reinvest in their business more quickly, instead of waiting weeks or months to get paid.

Find out more about how Zulily and Amazon vendors benefit from invoice factoring as a cash flow solution or request a free, no-obligation quote for invoice factoring services using the form below. 

How-To and Marketing Tips for Vendors Selling on Zulily

How-To and Marketing Tips for Vendors Selling on Zulily

Are you thinking of selling on Zulily? Find out how to become a Zulily vendor and what you can do to help boost sales of your brand’s wares selling on Zulily, Amazon or any third party e-commerce site.

Is Selling On Zulily Right for Your Business?

Zulily is a fast-growing ecommerce company with over $1 billion in net sales. It is highly ranked among on lists of top online retailers by such noted organizations as Fast Company, the U.S. Apparel & Accessory Online Retailer Ranking, and National Retail Foundation’s Top 50 Favorite Online Retailers. The great reviews Zulily has received from brands make it hard to find any downside to signing up to sell your own products, especially if segments of the e-commerce site’s vast customer base fall within your own target markets.

How Does the Platform Support Vendors Selling on Zulily?

Zulily does a lot of marketing work on behalf of its brands. The platform’s sophisticated tools make a brand’s products visible to the right buyers which include more than 5 million active U.S. customers (most of whom are women aged 25-45) as well as customers from more than 80 other countries. Of their U.S. customers, many are loyal, with 88 percent of the site’s North American orders being placed by repeat customers.

Zulily vendors can expect the platform to have their products up on the site and ready to sell in just a few days. Platform tools make it easy for vendors to display their products professionally by including photography and design services at no cost with a vendor account. The site also provides free copyrighting services to vendors for added peace of mind.

Vendors selling on the platform currently represent more than 15,000 brands; but since the e-commerce site is currently one of the fastest growing, there is no reason that new vendors will not find similar success in bringing their inventory and new products to the public using this platform. Specifically, the site suggests it could be a great way for a brand to:

  • Launch a new brand or product
  • Sell through limited-quantity or seasonal products
  • Clear out excess inventory

We’re obsessed with offering customers something special every day at amazing prices.” – Zulily.com

The First Step to Selling on Zulily is Becoming a Zulily Vendor

If you are interested in selling on Zulily or finding out whether it’s a good fit for your brand, you can apply to become a Zulily vendor online or by contacting them 855-396-3642 or email at newvendor@zulily.com

The site’s vendor pages even offer an overview of how to get started selling on Zulily and what to expect during your brand’s sales event in this “Zulily 101” video that lists a simple five step process for vendors:

  • Send a list of your product SKUs and inventory quantity(s)
  • Send your own product images or send samples for Zulily to photograph
  • Your event will launch within a short period of time, usually running for three days, during which you can access real time sales reports
  • Zulily will send you a purchase order on the first day of your event and another one when your event has ended
  • After you receive the purchase orders, you ship the products ordered to Zulily’s warehouse and then they ship individual orders out to customers

Zulily vendors have access to real-time sales reports during their event and can even manage their event by PC or mobile device. In addition, the platform provides vendors with product, shipping and billing information as well as detailed geographic and sales reporting.

How Fast Do Zulily Vendors Get Paid?

As a vendor, you’ll be expected to have inventory on hand or the ability to produce the inventory needed to fulfill the orders sold during your event by the time the 3-day event has ended, so that you can fulfill the purchase order right away. Because the platform must allow for returns and refunds, Zulily vendors may wait about two months — upwards of 60 days — to receive payment from the site.

Zulily vendors can receive payment the same day that they have a promise of payment from Zulily by factoring their promised payment instead of waiting 60-90 days for Zulily to forward payment. The vendor factoring process is identical to invoice factoring, in that the vendor factors the invoice with us for a low fee (as low as 4 percent of the invoice amount) and receives a same-day advance of up to 90 percent of the invoice amount – or the amount Zulily has promised to pay the vendor.

By factoring Zulily vendor payments, vendors can expedite cash flow to reinvest in growing their brand more quickly, taking on new orders and taking advantage of the momentum of new brand awareness and popularity as a result of their exposure on Zulily.

How Can Vendors Selling on Zulily Maximize their Marketing ROI?

Vendors selling on this and other third-party e-commerce sites receive a lot of added value from brand exposure on the platform, but that doesn’t mean they can’t engage in marketing activities of their own to get even more marketing ROI from their event. Vendors and manufacturers that want to maximize marketing ROI when selling on Zulily, Amazon and other e-commerce sites should:

  • Build a strong following on sites like Facebook and Pinterest which are used by the vast majority of Zulily customers to facilitate brand engagement with Zulily customers
  • Promote the event on their own social networks
  • Send an email announcement to suppliers, vendors, employees, and other stakeholders about the event, and ask these types of partners to share the event on their social networks as well
  • Publish one or more blog posts in the weeks leading up to their event, during the event and following the event highlighting successes and providing a “save the date” for future events
  • Use email newsletters to let contacts know about their Zulily vendor event
  • Publish a press release simultaneous with the beginning of the event to reach customers via news publications
  • Sponsor social posts on Facebook, Instagram and Pinterest with links to their event and products on the e-commerce platform

Vendors should also take advantage of any content areas provided on the e-commerce site to display their logo, tell their company story, speak to values and provide other marketing messages. This is the type of content that can create a personal connection with customers, so they become interested in the brand itself, follow it on social networks or even look for retail outlets where they can purchase more products from the brand.

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If you are a Zulily vendor who is interested in finding out more about how you can expedite cash flow using Zulily vendor factoring services, simply submit the form below: