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

---

Its All In The Systems

Have you ever noticed french fries taste the same at every McDonald's? The same can be said for Subway and its Italian BMT. How do these fast food icons replicate themselves at nearly... Read More

Why Management Kills Creativity

Ten or so years ago, an international consultant, specializing in employee involvement and team development, published a story relating to workplace communication that is heartwarming and damning at the same time. In 1981,... Read More

Tales from the Corporate Frontlines: Workplace Ethics: Reaching the Highest Standard

This article relates to the Ethics in the Workplace competency, commonly evaluated in employee surveys. It gives examples of how employees and customers consider ethical behavior and sound values an integral part of... Read More

Pricing Strategy for Retail Flower Shops

When you create your profit and loss statement to assess the health of your business, you will see:Sales minus Cost of Goods Sold equals Gross Profit.You pay for all of your expenses with... Read More

Safety Policy Sample Outline

Writing a safety manual is a tough job and most larger corporations outsource such jobs or they have someone on staff with the proper credentials in risk management. Imagine writing the safety manuals... Read More

Instantly Uncover Your Corporate Culture

Best Definition of "Corporate Culture"If you ask 10 people to define "organizational culture," you will get 11 different answers!Fortunately, from my consulting and writing on leadership and organizational change, I created my definition... Read More

Project Managment: Land the Plane Stop Doing and Start Succeeding

We all spend time on planning vacations. If it's not you then it's probably your significant other or travel agent. Think of the time we spend choosing the destination, getting the best airlines... Read More

What Personal Assistants Really Want

What would happen if the personal assistants in your organisation were away for a week? How would it affect the running of your business or department? How would it affect you?personally?If you are... Read More

Why Your Company Needs An E-Mail Policy

Everyone at the office thought that using the company e-mail system to share jokes and funny stories was great fun. That is, until one offended employee decided to sue his employer for having... Read More

A Sense of Humor in the Workplace ... Is it Me? Or, was that not funny?

When I was first initiated into Corporate America, I had a sense of humor that went unmatched by any mortal soul. I was quick-witted, smart, sharp, and knew every gag and joke available... Read More

The 10 Realities of Change

I've seen several articles that begin with lines like "the only constant today is change." I assert that change that is constant can't really be called change. It's simply a new reality. It's... Read More

Group Discussion Guidelines

DISCUSSION METHODS: There are two basic types of discussion methods; the conference method and the workshop method. The conference method involves meetings of staff members, usually from the same organization, and is convened... Read More

Increase Productivity: Five Powerful Actions

How can you make the best use of your energy to increase productivity each day? Here are five actions that can increase productivity and leave energy to spare. They will also help you... Read More

Creativity and Innovation Management ? Idea Progression

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 field, for example, creativity can be... Read More

The Leaders Fallacy May Be Howard Deans Undoing

Howard Dean's tenure as chairman of the Democratic National Committee will be fleeting unless he avoids a common leadership trap I call it, the "Leader's Fallacy".Leaders adhere to the Leader's Fallacy when they... Read More

What We Have Here Is A Failure To Communicate

Today's successful organizations are the ones which carry on open and honest communications with their employees. If employees know and understand the mission, they will help communicate it to customers.Here are some employee... Read More

How to Deal With Salespeople

If you are an executive, you may sometimes feel like a open jelly sandwich at a picnic. Every crazy critter in the world wants to bite into your budget. Here's how to protect... Read More

Budgets that Damage - The Downsides of Making the Numbers

In my organisational career, I had budgets from the age of 22 to 47. I lived and breathed them and many times, budgets, the gospel that they were, caused havoc, albeit within the... Read More

Be a Leader - The Importance of Going Home Early!

How you run your business is, of course your business. A little focus from your end will dictate the way your people act and behave. So the onus is on you to show... Read More

Quality Standards with ISO 9001

Standardizing Quality SystemsThe ISO, or International Organization for Standardization, was established in 1947 to develop international standards for everything from electronics to management systems. Having over 13,000 standards currently in place, ISO has... Read More

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... Read More

The Fairness of Office Politics... Integrity and Political Motivation!

I hear many complaints daily about the "unfairness" of politics in corporate America. Employees say that their managers "lie" or issue "personal attacks" against them. Indeed, based on the pure ideals that we... Read More

Overcoming Perfectionism

Perfectionism can get in the way of building or marketing a successful business. It can prevent us from moving ahead quickly or from taking advantage of business opportunities. We set ourselves up with... Read More

Computer Consulting 101 Hiring Tips (Part 1 of 2)

Does your business need the services of a computer consulting firm? Before you rush out and hire the first techie or slick-salesperson that knocks on your door, be sure to consider these favorite... Read More

New Job, New Culture: Do You Fit In?

It seemed like a good decision at the time. A 10-percent raise, an easier commute and a chance to move up the corporate ladder.Now, six weeks into the new job you know in... 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 field, for example, creativity can be... Read More

Leading Meetings: The Top Three Challenges

What do people really find challenging about leading meetings? Here are the top three questions that keep on cropping up followed by guidelines or simple ways to keep meetings under control and on... Read More

Gossip And Rumors And Hearsay, Oh Why?

In the Wizard of Oz, it was "Lions and tigers and bears, oh my!" Many organizations today are singing a slightly different tune: "Gossip and rumors and hearsay, oh why?"It is estimated that... Read More

Truth or Consequences: How to Give Employee Feedback

In the bestseller, Good to Great, Jim Collins discovered that, "the good-to-great companies continually refined the path to greatness with the brutal facts of reality."And, in his recent autobiography, Jack Welch reports that... Read More