Ozarks Capital Funding

Invoice factoring gives your company much-needed working capital. Call us today at (417) 849-7394 to get started!

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Collateral

March 18th, 2010 · No Comments

When you go to the bank for a short term line of credit, chances are you’ll have to pledge some personal assets or at the minimum, offer a personal guarantee.  Such is not the case with invoice factoring.

When you enter into a factoring arrangement, the funding source needs to make sure that the receivables are unencumbered.  This means that no one else can have a lien on your accounts receivable.   Factoring companies must have a first position on your A/R because that is usually the only collateral they will have.

→ No CommentsTags: Accounts Receivable Factoring by Ozarks Capital Funding · accounts receivable factoring · cash flow · factoring accounts receivable · factoring invoices · factoring receivables · invoice factoring · receivables factoring · receivables financing · working capital

Factoring and Delinquent Payroll Taxes

March 13th, 2010 · No Comments

Many companies who would like to factor invoices as a way to acquire working capital may think that liens iimposed by the IRS from delinquent payroll taxes will impede their desires.

While the factoring company must have a clear title to the receivables because that is their only collateral, the IRS will often subordinate their interest if a deal can be worked out.  Such an arrangement, called a “subordination agreement”, would require the factoring company to send the IRS a payment from each advance.  The remainder would go to the client for them to use to pay bills, payroll, or any other purpose.

We have worked with the IRS as well as banks when there is an existing lien in place.  Call us at (800) 560-4420 with any questions.

→ No CommentsTags: Accounts Receivable Factoring by Ozarks Capital Funding · accounts receivable factoring · cash flow · factoring accounts receivable · factoring invoices · factoring receivables · invoice factoring · receivables factoring · receivables financing

My Interview With Dental Staffing Expert Ken Smith

March 10th, 2010 · No Comments

Forming the right mix of staff members can literally determine the success or failure of a dental practice. I recently interviewed Ken Smith, Vice President of Peak Performers, a well-regarded healthcare staffing company. Ken has many years of experience in the staffing field and also provides support for both buyers and sellers of dental practices.

Ken shared some insights into dental staffing, practice transitions, can contingency planning for dentists in a three-part video series on youtube.com. Each segment runs between 3 and 5 minutes.

Segment one http://www.youtube.com/watch?v=7HIFlEjkNo4

Segment two http://www.youtube.com/watch?v=6KqNG2K0JY8

Segment three http://www.youtube.com/watch?v=GO5bJi3PgE4

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Are you looking for financing to purchase, remodel, or equip a dental practice? Apply at www.dentalpracticecash.com


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Progress Billings vs. Milestones

March 6th, 2010 · 1 Comment

Many times a company will have a long term contract to perform services for another firm.  In these circumstances, the company will bill the out the customer for part of the services rendered, even though the entire project hasn’t yet  been completed.  An example would be a construction company contracts with a city to build a water tower. They might bill the city every month in order to rely on some cash coming in each month so they can pay bills.  This is known as progress billing.  Factoring companies are not able to advance funds in these situations because the service in total has not yet been accepted by the customer.

When the contract calls for a project in which a variety of tasks are to be completed along the way, an invoice factoring relationship can usually be developed.  This is because there are milestones along the way.  For example, lets say a construction company contracts with the city to erect structures around several park areas.  The company bills the city each time they have finished work at a park.

Since there has actually been a service total completed that relates to the bill, the factoring company can usually work with the company to provide much-needed working capital.

→ 1 CommentTags: cash flow · factoring accounts receivable · factoring invoices · factoring receivables · receivables factoring · receivables financing

My interview with a Medical Collections Expert

March 4th, 2010 · No Comments

If you own a medical or dental practice, staying on top of collections is a critical function.  It can literally mean the difference between success and failure.  Utilizing a medical and dental collections professional may at first appear costly.  But in the long run, doing so can yield substantial dividends.

I recently interviewed Mr. Ron Priebe, a collections expert with Greenflag Profit Recovery, located in Ann Arbor Michigan. Ron has a long and successful track record in the area of medical and dental collections. Ron shared some of his insights in an interview that I incorporated into a three-part video series.

If you are interested in learning more about effectively lowering the amount of bad debt in your practice, I strongly suggest that you check out the following youtube videos (about 4 minutes each).

http://www.youtube.com/watch?v=0Vwhoymq7bs segment 1

http://www.youtube.com/watch?v=Q4zLhSaqStQ segment 2

http://www.youtube.com/watch?v=tm19H1fI1Z0 segment 3

→ No CommentsTags: dental collections · dental working capital · dentist financing · medical collections · medical financing · medical working capital

Generation Zero

February 25th, 2010 · No Comments

How did the financial meltdown REALLY happen?  Why was the crash inevitable?  A new documentary coming out next month, Generation Zero, featuring more than 40 leading experts, authors, and pundits from across the political spectrum, makes the case that the root of the problem was the mindset of the “Greatest Generation”.  

Many in this era vowed to not let their children suffer through the same economic hardships that they did during the Great Depression and WWII.  This in turn led to the “Me Generation” and ultimately the Clinton/Bush era of trading campaign contributions for government “cover” in the form of guaranteed bailouts of Wall Street’s speculative investments, thus sowing the seeds of economic disaster that would be reaped by coming generations.

The teaparty movement has sprung up in large part from the irresponsible handling of our economy by leaders we have entrusted.  This documentary will likely result in a further outcry against big government and overspending.

→ No CommentsTags: economy · government spending · tea party

Increasing Your Customer Base

February 19th, 2010 · No Comments

Is your company unable to extend credit to potential customers because you need the cash NOW?  Many businesses, especially in this economy are facing this dilemma and it is very detrimental to both short and long term success.   Invoice factoirng helps cash-strapped companies offer credit to their customers because they can receive most of the amounts due within 24 hours of billing.

Factoring companies provide cash advances for receivables relating to  credit-worthy customers.  Most companies expect to receive at least 30 day terms on their billing, unless they are given a discount for paying sooner.  To require cash-only terms, you are likely losing a significant amount of market share to your competitors.

I’ve been asked:  “but isn’t accounts receivable factoring too expensive?”  My response is usually:  “although it is more expensive than bank loans, you should look at the opportunity cost of not factoring.”  In other words, how much does it cost your company in lost sales and profits by not extending credit compared to the fees charged by the factoring company.

→ No CommentsTags: Accounts Receivable Factoring by Ozarks Capital Funding · accounts receivable factoring · cash flow · factoring accounts receivable · factoring invoices · factoring receivables · receivables factoring · receivables financing · working capital

Problem solved

February 14th, 2010 · 1 Comment

A regular reader of this blog sent me an email telling me that he was reading the latest post and suddenly another page loaded.  He was  taken to a site unaffiliated with Ozarks Capital Funding.

I launched the blog and the same thing happened to me.  After doing some research, I discovered that some code had been inserted in the administrative section of my WordPress account.  With the help of my webmaster, James Gerhold of Mediavelocity, I deleted the code that created the problem and adjusted the settings to shut out any future possible issues of this nature.

Hackers need to be caught and sentenced to the full extent of the law!

→ 1 CommentTags: Accounts Receivable Factoring by Ozarks Capital Funding

Pulling the Trigger

February 1st, 2010 · No Comments

We get inquiries all the time from business owners concerned about the cash flow of their companies.  Many of them have limited knowledge about invoice factoring and we do our best to educate them.  We thoroughly explain the process of becoming a factoring client and assess their situation to determine if they a good candidate for this type of financing.  If they appear to qualify, we send out an accounts receivable factoring application and ask for copies of a few other documents such as their articles of incorporation, past two years financial statements, and a current aging report.  Then we wait.

Surprisingly, we don’t receive a large share of completed applications.  If the business is struggling with cash flow, and it has been demonstrated that factoring enhances cash flow, why won’t many owners or financial managers take the next step?

Unfortunately, fear of the unknown is one the main reasons.  Even though we’ve gone through step by step and explained how factoring companies operate, many of them are not comfortable because it differs from traditional bank financing.  Despite the fact that a majority of those that call are not eligible for a bank loan, they ultimately decide to “ride it out”.  This can be costly in several ways.

Another reason is the cost.  As we’ve expressed many times before,  factoring is not cheap financing, but it is critical for the decision-maker to analyze the costs and benefits.  If the company has a healthy profit margin of 15% or greater and can increase market share and profits by factoring invoices, it should be strongly considered.

→ No CommentsTags: Accounts Receivable Factoring by Ozarks Capital Funding · accounts receivable factoring · cash flow · factoring accounts receivable · factoring invoices · factoring receivables · invoice factoring · receivables factoring · receivables financing

New Factoring Video Has Been Produced

January 24th, 2010 · No Comments

We’ve produced a new invoice factoring video that has been placed on youtube and will be distributed on other areas of the internet.  Go to : 
www.youtube.com/watch?v=p4fQeWPSD54

We are proud of how it turned out and kudos are in order for the Producer, James Gerhold of Mediavelocity.  James is a real pro who has won several Addy awards in the Springfield, Missouri market.   Check out his site:  www.mediavelocity.com and view his excellent works.

Special thanks to Sarah Bargo, who did a great job with the spot.

Need a free, no-obligation factoring quote?  Call us at (417) 560-4420.

→ No CommentsTags: Accounts Receivable Factoring by Ozarks Capital Funding · accounts receivable factoring · factoring accounts receivable · factoring invoices · factoring receivables · working capital