10 Reasons Why You Shouldn't Factor Your Receivables

Any small business has heard about a factoring company. They are very cookie cutter, expensive, and have a small window to fit in if you want financing. The problem with this is that if you do fit into that small window of doom, a factoring company will charge you a ton of sneaky fees, and rob companies of their profit.

Since here at Lenders Commercial Finance, we are not a factor, we are an asset-based lender; we will be discussing the benefits of using a company that likes to think out of the box when it comes to financing companies.

1. Advance Rates - that is the big part of the equation, as a small business, how much money will we get out of financing our receivables? Our rates on advance vary from 75%-90% of the invoice, as compared to 70%-85% that a factor will give. That means more bang for your buck!

2. Rate Periods - 
Factor - 5 Day, 10 Day, 15 Day, 30 Day Chunking
LCF - Convenient Daily Rate, No Chunking

3. Rates Applied To - 
Factor - Full Invoice Amount (Regardless of Advance Rate)
LCF - The Net Amount Advanced

4. Typical Rates - 
Factor - 2%-4% every 30 days
LCF - 0.069% to 0.089% for each day

5. Float Days - 
Factor - 3 to 5
LCF  - 1 or 2

6. Required Reserves -
Factor - Typically 10%
LCF - No Reserve Requirements

7. Factor All Your Accounts -
Factor - Usually Required
LCF - Not Required

8. Factor All Accounts with Single Debtor
Factor - Usually Required
LCF - Not Required

9. Factor When Confirmed with Debtor
Factor - Usually Required
LCF - Can Hold Your Invoices Up to 15 Days Before Due Date

10. Repurchase Your Invoices Early
Factor - Not Allowed
LCF - Allowed Anytime


There are the first 10 ladies and gentlemen!

As you stew over that pretty little list, I will start working on the next 10.

In the meanwhile...

Simple, Proven Ways to Increase Page Traffic

Anyone who has a blog, e-commerce store, or webpage, is always wondering: "How do I increase my ranking on a search engine?" There are a many different ways that apply to marketing experts, and amateurs alike.

These techniques are applicable to anyone in the field; a few easy steps will have you taking steps to increase the web presence of your site.

Start A Blog - It's easy, customizable, and with a little effort, you can have regular readers and glances at your blog. The topics do not have to be anything in particular, write about what is on your mind, sports, activities, hiking, cars, the world is your oyster. While writing your blog make sure to use keywords with links to your website to drive traffic. Hop onto Google Adwords and find some easy and difficult keywords to narrow your gaze on. Make sure to include pictures and keep it vivid! Consistency is key; if you start a blog, make sure you stay up to date on weekly updates. Post a picture, a list, a fun fact, stay consistent!

Free Stuff:  Who doesn't love free stuff? Scour the internet, find deals, drive traffic to your site by offering something for free, then add some advertising, and boom, sales & advertising that make you money. For a great example try out Sites180's lovely site, It's What Jen Says she knows her stuff!

Social Media: I say this with hesitancy, but yes, it does help. A twitter account can be helpful, by posting guidelines, 144 characters of knowledgeable information. Share links, photos, anything that may get someone to click on it. Avoid just trying to get followers, and find people that are in the industry and something you can talk about, connect to, plug if need be.

Facebook: This word does not mean start telling your friends to visit your site by posting pictures of cats talking, half naked women, or quotes by people who have died centuries ago. That word means post helpful, intelligent things, no baby momma drama. Ask your friends and acquaintances for opinions, suggestions, and constructive criticism. Make a fan page, but keep it current.

Pinterest: Selling things? Try pinning some ideas and uses for your products!

Directories: These bad boys are easy to use! Make a dummy email account, sign up, post your website under the correct indsutry, and away you go! Check this link out for a list of top directories that you may find useful.

Article Submission: Hop on Reddit, Digg, or any article based website, and submit something off of your blog. If it is approved by something like Ezine you never know where in the world people will be viewing your website from!

SEO: Try reading up on some Search Engine Optimization techniques. SEOmoz offers some great tools to learn how to start out. If you are too busy, hit the SEO link, and check in with one of the country's top firms.

Backlinks: If you have done business with other websites, ask for a link. Maybe they have a blog, and can post a positive review about your company.

Press Releases: For under 400.00 you can have a website write a press release for you, include an SEO package, and distribute it across the web. Watch your keywords jump up through the rankings as this easy-to-do, and low cost piece does its' due diligence for your company.


Take these easy tips, find some free time, and enjoy the journey.

As always, your faithful and loyal scribe, Mike

Lenders Commercial Finance - Factoring Loans

Say Hello To My Little Friend!

We at Lenders like to enjoy the humor in everyday life.

Here is another one of our finance jokes

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