Using Invoice Factoring to Ease the Pain of Net 30

Using Invoice Factoring to Ease the Pain of Net 30

Even the best business managers and owners can feel the pain when clients or customers don’t pay promptly. When the payments stretch to 60 and 90 days before an invoice is settled, businesses that have many customers in that category can suffer under strain that threatens their survival.

Enter the Concept of Invoice Factoring

Although any business may experience a shortfall, when the time to pay employees comes, the cold hard numbers don’t add up, and the bills can’t be paid, a solution needs to be found. With a stack of unpaid invoices, the value of those invoices can be converted to usable funds in a hurry. That is the beauty of invoice financing.

The idea of meeting payroll, a steady expense that impacts lives, can throw a business owner into turmoil. If the payroll isn’t paid on time, employee morale may suffer, employee/employer relations may be strained, and the employee might leave.


Finding a way to meet payroll through invoice factoring could keep funds flowing on time. Using invoice factoring could seem like a miracle for the beleaguered businessperson. But, as with any strategy, the owner needs to review the options available, which vary from firm to firm.

How Invoice Factoring Works

  • A business needs money and has unpaid invoices.
  • Approaching the invoice factoring company, the businessperson applies for consideration, usually specifying the amount of invoices, plus details about the business.
  • Upon approval, advances are offered based on the invoice amounts. An advance amount is provided to the business, a percentage of the invoice. The advances range broadly, but it is recommended that the businessperson look for advances in amounts of 85 percent and more.
  • Once the advance is paid, the invoice factoring company retains a reserve amount.
  • When the company collects on the invoice, the reserve is provided to the business minus the agreed upon fee.

Considerations for using invoice factoring include:

Amounts available. What amount do you need to make the payroll or pressing expenses? Can you manage with the amount you’re immediately able to obtain, which can be about 85 percent of the invoice total? Does the firm offering the invoice factoring require a certain credit line minimum amount or require a long-term contract? Avoid anything that entangles you for more than you need.


Fees required. Are the fees charged worth the effort? Check for any hidden fees, like an application fee, processing fees, credit check fees, and overdue fees when a client is late in paying. The amounts paid to the invoice factoring firm can vary from less than 1 percent to 5 percent. If the invoice is typically just a few days late and you can find another strategy, would that be less costly and headache inducing?

Turnaround time. Can the funds be obtained quickly? For each day you’re waiting, is it likely that your invoice would be paid? Time to receive funds after approval are shown as early as a day to several days. In contrast to a regular bank loan, payments can be made available within a much shorter time through invoice factoring.

How they treat clients. If you do apply for invoice factoring and are approved, the factoring company now owns your clients’ invoices. They are free to approach your clients. Do they have a track record of treating people well? Does the firm offer “non-notification factoring,” so the client would not know that their invoice is not directly in your hands?


Credit worthiness of your clients
. If your clients do not have a clean credit record, it is possible that you might not be approved for invoice factoring. Do you know your clients and their current situation?

Being in business is tough. Entrepreneurs struggle, sometimes monthly, to make the numbers work. With the whole domino effect of businesses relying on other businesses to survive and succeed, a prudent business owner might consider invoice factoring a useful tool.

As with most financial tools, the terms can differ widely for accessibility, limits, fees, and whether contracts are required. Any prudent business owner would also do well to research the firms, their terms, and their reputations before enrolling.


Find the right firm with the right terms and your business could benefit — and so could your employees.

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Last Updated on May 22, 2019

50 Great People To Follow On LinkedIn, No Matter Your Industry

50 Great People To Follow On LinkedIn, No Matter Your Industry

LinkedIn is an excellent platform to network with great people to help you in your career and businesses. However, with over 575 million people on the site, who should you follow? This list will steer you to the right people to follow, organized by categories of expertise.

Job Search Experts

You will likely have several jobs throughout the course of your career, and you will constantly need advice on new trends and strategies out there in the job market. Here are the LinkedIn experts who you should follow on these matters.

1. Liz Ryan is the CEO and founder of Human Workplace. Her articles on job searching are filled with creative and colorful cartoons.

2. Lou Adler is the author of The Essential Guide for Hiring and Getting Hired.

3. Dr. Marla Gottschalk will help you make an impact in a new job.

4. Hannah Morgan runs, where she gives expert advice on job searching and how to be more visible online.

5. Alison Doyle is the CEO and Founder of

Management Experts

They say that people leave managers, not jobs. These experts in LinkedIn will help you become your employees’ dream manager.

6. Jeff Weiner. How can we leave out the CEO of LinkedIn himself?

7. Nozomi Morgan is an executive coach. She can help you transition from a boss to a true leader.

8. Mickey Mikitani is the CEO of Rakuten. He constantly shares his expertise in managing a global player in e-commerce platforms.

9. Andreas von der Heydt was the head of Amazon’s Kindle Content and now the Director of Talent Acquisition. He has extensive experience in management, branding, and marketing.


Productivity Experts

By maximizing your productivity, you can win in all aspects of life. The following LinkedIn experts will help you win big in your career.

10. Gretchen Rubin is a happiness coach and the bestselling author of the The Happiness Project.

11. Carson Tate is the founder of Working Simply. She advises us to include play in our schedules.

12. Greg Mckeown is an essentialist. Part of being an essentialist is saying no to many things so that we can focus on the things that matter.

13. Brian de Haaff, CEO of Aha! Labs Inc. provides strategies on how to be productive and happy at work at the same time.

Marketing Experts

14. Sujan Patel is VP of Marketing at When I Work, an employee scheduling software. He is an expert in content marketing and he even shares his ideas on content marketing in 2020.

15. Megan Berry is the Head of Product Development at Rebelmouse, a content marketing and AlwaysOn powerhouse.

16. Sean Gardner will help you navigate the social media landscape. This includes how to use different platforms to help accelerate your career. He is also the bestselling author of The Road to Social Media Success.

17. Christel Quek is an digital and marketing expert. She is the VP of South East Asia at Brandwatch. Their products help businesses utilize social media data to make better business decisions.

18. Jeff Bullas is a digital marketing expert. His blog has over 4 million readers annually.

19. Michael Stelzer is the CEO and Founder of social media powerhouse site, Social Media Examiner.

20. If you’re looking for inbound and content marketing expertise, follow Dharmesh Shah, Founder and CTO of Hubspot.


21. David Edelman is a McKinsey partner and is at the helm of the Digital Marketing Strategy Practice Department.

22. Dave Kerpen leads the social media software company Likeable Local. He is the author of Likeable Social Media: How to delight your customers.

23. Clara Shih is the CEO of Hearsay Social and the author of The Facebook Era.

24. Aaron Lee is Grand Master of Customer Delight at Post Planner. He is an excellent resource for everything social media.

25. David Sable is the CEO of Y&R, one of the largest advertising firms in the world.

26. Content marketing trumps traditional marketing these days, and who else better to lead you in this area than Joe Pulizzi, Founder of Content Marketing Institute.

Personal Branding Experts

Part of what we market in our personal career is our brand. When people hear your name, what kind of brand comes into their mind? What traits and qualities do they associate with you?

Here are some personal branding experts from LinkedIn to improve your own brand.

27. Dorie Clark is the author of Stand Out and Reinventing You. He can help you craft the professional image you’ve always wanted.

28. Dan Schawbel is the managing partner of Millennial Branding. If you’re a millennial, Dan is the guy to help you craft your personal brand.

Other Notable Experts to Follow

29. Lisa Gates is the expert to follow if you’re negotiating for higher salaries and promotions.

30. If you’re a Baby Boomer, Marc Miller will help you navigate the continually changing landscape of the workplace.


31. To avoid getting your resumé moved to the “No” pile, read Paul Freiberger’s excellent advice.

32. James Caan provides insightful ideas on careers in general. He is also a serial entrepreneur.

33. Jeff Haden writes on various topics, such as leadership and management. He is the owner of Blackbird Media.

34. If you’re looking for expert business advice on getting new customers and keeping them, follow Jay Baer.

35. Suzanne Lucas, aka Evil HR Lady, is a great human resources specialist.

36. If you need help in using Twitter to boost your career, Claire Diaz-Ortiz can guide you in the right direction.

37. Ryan Holmes is the CEO of Hootsuite, a social media management tool.

38. Customers are the lifeblood of a business and Colin Shaw focuses on revolutionizing this customer experience.

39. Brian Solis often reflects on the future of business and how technology can disrupt our world.

40. Nancy Lublin provides advice on more lighthearted topics, which are perfect after a long day’s work. She is the CEO behind, a portal designed for social change; and the founder & CEO of and Crisis Text Line.

41. Katya Andresen provides advice on how to manage your career. She was the CEO of Cricket Media and now responsible for the SVP Card Customer Experience at Capital One.

42. Gallup has created a system to test what your strengths are and how to use them at work. Jim Clifton is the CEO of Gallup.


43. Adam Grant is a Wharton Professor and the author of Give and Take, which provides advice on why being helpful at work can accelerate your career.

44. Hunter Walk is a partner at Homebrew Venture Capitalist Company and has specialty in product development and management.

45. If you’re running a nonprofit organization, follow Beth Kanter for expert advice on this area.

46. Emotional Intelligence is necessary to succeed in your career, and Daniel Goleman is your expert for that.

47. Rita J. King connects science, technology and business.

48. Tori Worthington Rose is a Creative Director at Mary Beth West Communications, LLC. She has extensive experience in sales and digital media.

49. If you’re looking for some advice on how to use writing and personal content marketing to boost your career, follow Ann Handley.

50. Tim Brown is the CEO at IDEO and shares his insights on Leadership and Creativity.

These are just some of the key thought leaders and movers in various industries. They will provide you with constant inspiration, as well as the willpower to pursue the career that you’ve always wanted. Their stream of expert ideas in their respective fields will help you become well-equipped in your professional pursuits.

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