Invoice Factoring for Goverment Vendors

Assignment of Claims Act of 1986"....What does this mean for you?

What does this mean to you? Simply, the U.S Government encourages their vendors to seek accounts receivable factoring of their invoices in order to help them grow, improve cashflow, increase performance, and level the playing field.

Access Unlimited Capital Through the Creditworthiness of the U.S. Government Any government contractor, under the the Assignment of Claims Act of 1986, may assign it's rights to be paid amounts due or to become due as a result of the performance of a contract to a bank, trust company or other financing institution. Larger vendors have been doing this for years.

Invoice Factoring is when a business sells unpaid accounts receivable invoices to a specialized financial institution called a Factor. The factoring company buys the invoice from the business for an amount less than its actual face value, then later collects the full amount of the invoice from the account debtor when it finally comes due. This service is useful to a business that cannot afford to wait 30, 60, or 90 days to collect payment from customers, cash is needed immediately for growth or survival.

When a business delivers goods or services to another business, an invoice is generated stating the amount owed and the terms (number of days) in which the invoice must be paid. This invoice along with its terms becomes an accounts receivable: money owed to a business, from a business, for goods or services delivered. The terms for these invoices are usually 30, 60, or even 90 days. After the business sends out the invoice it must wait the length of the term (or longer) to collect the debt and recognize the revenue generated. Waiting for these long billing cycles to close can be difficult for a company that is growing fast or just struggling to survive.

Rather than waiting for long billing cycles to close, a business has the option to sell some or all of its outstanding invoices to a Factor (for a discount) and receive funding within 24 hours or less. The Factor will eventually collect the full amount of the invoice from the account debtor.

Afra AmirSanjari is the Principal for Peacock Capital. Peacock Capital specializes in solving the cash flow challenges of Small/Medium Businesses, Government Vendors and Individuals with innovative financial solutions by providing a network for securing operating capital.

http://www.peacockcapital.com; info@peacockcapital.com

---

Performance Management Made Easy

Performance Management is a process that both employer and employee often fear!Why is this so!There is much misinformation about the performance management process and performance appraisals in... Read More

How to Hold Effective Staff Meetings

Many people believe that they conduct effective meetings, when all they really do is host a party. Or worse, they deliver a monologue. In either case, their... Read More

Efficiency Around The Office

Nearly every office, be it commercial or home-based, may have areas of inefficiency that can be improved upon. We are not talking sales figures or profit margins... Read More

Setting Direction Within an Organization

FINDING DIRECTION: An organization can't succeed without direction. Direction means having clear goals and guidelines; set goals and guidelines for staff to follow. When staff direction is... Read More

Unravelling the Data Mining Mystery - The Key to Dramatically Higher Profits

Data mining is the art of extracting nuggets of gold from a set of seeminngly meaningless and random data. For the web, this data can be in... Read More

Identifying Candidates for Leadership

A critical task in the succession planning process of any organization is identifying candidates. Traditionally, candidates have been identified based on past performance. While this seems logical,... Read More

Innovation Management: The Quality and Quantity of the Idea Pool

Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.There are distinct processes that enhance problem... Read More

Creativity and Innovation Management: Incubation and Insight

Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.There are other useful definitions in this... Read More

What 80% of Businesses Don?t Know: Tips for Improving Your Working Capital Management

What is the number one way to prevent failure in business? Take a minute to really think about your answer. What comes to mind? Increasing patients or... Read More

Keep The Faith - Transform The Fear

FEAR! To what extent does fear rule your life? How is fear controlling or motivating you? Bring up the topic and watch people react. Our lives incorporate... Read More

First Things First -- Process BEFORE Technology

Here's a brief story I encountered while leaving Newark International Airport following a recent business trip. Hard to believe, but true.After a long flight home from the... Read More

A Tricky Supervision Challenge

Many managers believe that treating their team members as responsible adults will assure excellent results. The truth is that while this usually is effective, some people need... Read More

Minimising Conflict With Effective Communication

Did you know there are 5 types of communication that lead to conflict? Let's look at them... Definition of 'Conflict' It helps if we... Read More

Inspiring Loyalty and Contentment in Your Workforce

One of the first things I look at when I take over a new department or division is the attitudes of the managers and /or supervisors.I ask... Read More

The Boss Didn?t Understand Why His Staff Wasn?t Reading His Mind

Many people believe that everyone sees the world exactly the same way as they do. This is never true and was the source of much turmoil in... Read More

Indiscretion Can Kill Your Business

The quickest way to cancel out all the thought, work, energy, time and expense you've poured into promoting your business is with indiscretions. I'm not talking about... Read More

Employee Retention: Its a Changing Game

As a management consultant, I have seen some poorly conceived retention policies at otherwise well-run companies. The philosophies underlying these policies lack some basic knowledge of two... Read More

Business Relationship Germs

In management seminars I often compare debt to an infection. A reasonable amount of debt will not kill a business, but too much debt will. While most... Read More

How Invisible Communication Barriers Kill Productivity

Many kinds of interferences or disturbances can confuse a message. Communication specialists call them ''noise.'' A noise is anything that competes against communication. Obviously, if we want... Read More

Towards Intercultural Understanding

An individual's ability to forge effective relationships across cultures is influenced by a very personal and highly complex mixture of emotional and cognitive processes. Anyone contemplating an... Read More

Influencing Change - A Guide for Sellers, Coaches, and Supervisors

When people or groups make a decision to purchase something, they go through the same decision cycle that an individual goes through to decide upon a personal... Read More

DIVERSITY is a BIG word -- With A HUGE Business IMPACT

Second thought! Just in case. YOU or someone you personally know may fit the following picture of success which may carry too much risk for comfort.You can... Read More

How To Prevent Your New Manager From Becoming A Statistic

According to a study by the Manchester Group, 4 out of 10 new managers fail in the first 18 months! The top 5 reasons cited:Not building partnerships... Read More

Character: Is It Necessary In Leadership? (Part Two)

In the first part of this two part article, I talked about the importance of character in leadership. After all, the best leadership involves the people bonding... Read More

Sarbanes-Oxley and Section 404: Old Dog, New Teeth

The failures we have seen in the quality and integrity of financial reporting in corporate America are clear evidence that something was awry. It is the responsibility... Read More

Document management : A dream of paperless office

What is document management: When we think about "Document Management" we usually see a picture of paperless office. It is not an easy task to make an... Read More