Comments for Factoring Blog

Comment on More Great Factoring Tips… by Glenn Blackman

Glenn Blackman — Wed, 27 Jan 2010 10:39:01 +0000

I just read your piece “Factoring Brokers - Are You a Finder Or a Broker” and wanted to agree. A true broker adds value to the process with hand holding, advice and support for their client, throughout the sale process and even once they become a client of a factoring company. More and more brokers seem to be nothing more than glorified marketing agencies that are content with identifying a factoring prospect and throwing it over the wall to the factoring company without any ongoing support.

Comment on What are some different ways to estimate cash flow? by cruiseman111111

cruiseman111111 — Mon, 20 Jul 2009 13:11:06 +0000

Factoring Feedback: bankruptsy or being in jail.

Comment on What are some different ways to estimate cash flow? by naveen k

naveen k — Fri, 17 Jul 2009 23:50:59 +0000

Factoring Feedback: you can form your personal home account by the through your any free family member

Comment on What are some different ways to estimate cash flow? by teenriodoll

teenriodoll — Fri, 17 Jul 2009 15:57:25 +0000

Factoring Feedback: Well seasonality is what you are using. But if you lived in let’s say New Orleans, in September 2005 then that method would not work.

A better way is to group according to lates. That is 30 day late. The receiables 60, 90 and charged-off.
What is your historical record for these?
Also you would be surprised that if you just send letters with return envelopes, pre-paid that you’ll get some 90 days to pay.
Just ask. Offer a payment plan on lates.
Once you see what the percentage is paying this is your baseline.

Finally, don’t forget the opposite. Do what other trade suppliers do. They offer a discount if paid within 10 days, 30 days, etc.

I hope this helps you.

Good luck

Comment on What are some different ways to estimate cash flow? by Harlan

Harlan — Thu, 16 Jul 2009 00:26:40 +0000

Factoring Feedback: Something else that is useful to consider would be projected growth. If your firm is anticipating significant growth (or retraction), you should definitely consider that in making your projections, because the receivables from this year would not be a reasonable measure in that instance. Has anyone there prepared a budget for the upcoming year, of anticipated growth?

Comment on What are some different ways to estimate cash flow? by Yibeltal F

Yibeltal F — Mon, 13 Jul 2009 11:02:42 +0000

Factoring Feedback: please study accounting properly

Comment on What are some different ways to estimate cash flow? by Regular Guy

Regular Guy — Sat, 11 Jul 2009 22:42:38 +0000

Factoring Feedback: There are a variety of ways to estimate cash flows for the coming year involving MS Excel. Unfortunately, you need to calculate your P&L (profit and loss) for the upcoming year first. This can be tricky. A very quick way is to assume that net income will either be the same as this year, or adjust it based on another assumption, say 3% (inflation). Next, you need to make certain adjustments to net income to determine cash flows. For example, do you expect A/R (Accounts Receivable) balances to remain the same from year to year? If you think that you can reduce your year ending A/R balance $1000 lower than your A/R balance is it will be at 12/31/06, then you have collected or “increased” cash flow by $1000, and this would be an adjustment TO net income. Same with A/P (Accounts Payable). If your A/P balance at 12/31/07 is $1000 higher than it was on 12/31/06, that means you HAVEN’T paid $1000 more at 12/31/07 than you did at 12/31/06, so again, this would be an adjustment TO net income (increases cash flow). Now do the same for F/A (fixed assets, things such as furniture, computers, vehicles - things that were NOT expensed when they were purchased), prepaid expenses, deposits, unearned revenue… (yeah yeah, I know, get’s complicated)… really, you need to do the same for any account balance found on your balance sheet. Law firms do not typically have muchin the way of depreciation, so all you accountants out there, don’t get in a huff because I omitted the depreciation side of this - we are trying to do this in a paragraph!
Now the last part. This is how you put a bow on it and present to your boss and you will need an estimation of cash at 12/31/06, probably based on the 11/30/06 G/L balance?….
cash 12/31/06 XXX
cash 12/31/07 XXX
increase cash XXX

Do you have access to the 10/31/06 balance sheet? If so, you can grab it. It will probably have the prior period onthere as well so you can practice.
Use this format:

Net income 2007 XXX

Increase/decreases in:
A/R XXX
A/P XXX
F/A XXX
(the rest) XXX
Cash flows from operations XXX

Cash at 12/31/06 XXX
Cash at 12/31/07 XXX
Increase / decrease in cash at 12/31/07 XXX

This is a horrible attempt at explaining a statement of cash flows to you while shoveling raisan bran in my face during breakfast and on the way to work… kiddo, hope this helps. Tell you what, if you want, you can email me and maybe I can do a better job, if you want? Good luck.

Comment on What are some different ways to estimate cash flow? by Dimomma

Dimomma — Sat, 11 Jul 2009 09:28:12 +0000

Factoring Feedback: Past accounting measured is the best predictor of future flow. Chart the last couple of years in your matrix and show allowances for bad debt. This should give you a strong prediction of future flow. Adjust current cash flow prediction with percentage of increase/decrease of foreseeable earnings. If your company anticipates an increase of overall earnings of 10%, adjust flow to less than but not equal to the increase.

Comment on Can someone recommend a good Accounts Receivable factoring company in the Southern California area? by Andrew O

Andrew O — Fri, 10 Jul 2009 09:32:13 +0000

Factoring Feedback: Providing cash flow solutions to businesses throughout Southern California

——————————————————————————–

Contacts:

Emily Baldizon, Business Development Manager

John Simpson, Business Development Manager

Marjhey Williams, Business Development Representative

562-777-1300

800-533-9472

Fax: 562-777-1311

10430-1 Pioneer Blvd

Santa Fe Springs, CA 90670

Comment on What are some different ways to estimate cash flow? by Ronnie B T

Ronnie B T — Thu, 09 Jul 2009 06:28:03 +0000

Factoring Feedback: Easiest is to just take the average time between billing and receiving. See if it is weighted by the dollar amount of the invoices. Of course tracking it is one thing. Improving it is another. Discounts if paid in a certain time generally will speed it up.