$30M Investment Helps Kabbage Keep Growing

Kabbage, an online financial service, plans to expand internationally with its recently raised $30 million dollars from providing working capital in less than seven minutes. Company CEO Rob Frohwein cites the lack of available capital for small companies the reason behind his company’s recent growth. Kabbage, one of the first companies to advance loans to “mom-and-pop” merchants, is the provider for online sellers to purchase inventory and resell them on eBay, Amazon, etc. The company makes their funds by taking a fairly small percentage of the advanced capital. Due to their success, the company is attracting investor attention from key investors of blockbusters Google, Facebook, and PayPal. Since last summer, Kabbage has managed to more than double their value with the new capital, in which they aim to devote in supply development, sales, marketing, and expansion into the United Kingdom. Not only is the company planning to diversify geologically, but also beyond the online merchant market. With the apparent financial growth, Kabbage expects to add jobs and square-feet to its office in Midtown Atlanta office. See the full story $30M Investment Helps Kabbage Keep Growing.

Small Business “Pre-Nups”

They say people can be married to their business — well, it follows that people can also go through messy business divorces. In a recent article in Crain’s Cleveland Business, U of M entrepreneurship professor James Price discusses how he often advises small business co-founders to sign a prenuptial-like contract in order to avoid conflict if one or more founder should jump ship.

Much like young love, entrepreneurial partners are often enamored with the start-up at first and might think that nothing could go wrong. Price advises that business partners instead think rationally and come up with an agreement that will force them to reason through what should happen in case of a break-up.

The fickle nature of business, with its soaring highs and Mariana Trench lows, can put stress on the best of partners. Sometimes “love” is not enough, and that is where a start-up pre-nup comes into play. Price claims that these contracts are a “clear-eyed way of building flexibility” so that both business and personal relationships can remain intact regardless of how it all plays out. See the full article at Why I Always Tell Co-Founders to Sign a ‘Pre-nup’.

Nuance Announces Proposed $350 Million Offering of 5.375% Senior Notes due 2020

Burlington, Massachusetts based Nuance Communications, Inc. will add approximately $200 million to acquisition war chest as a portion of a $350 million bond offering. Although the Senior Note is unsecured, it is fully and unconditionally guaranteed on a Nuance’s domestic subsidiaries. Nuance plans to repurchase the notes from holders upon a change of controls at 101% of the principal amount as well as any accrued and unpaid interest, nearly $354.2 million dollars with which they will use to repay debts and acquisitions. See the full story Nuance Announces Proposed $350 Million Offering of 5.375% Senior Notes due 2020.

Marketing Directly to Consumers of Private Duty Health Home Care

October 12, 2012
A recent article in the Private Duty Today newsletter addresses an issue that home healthcare providers often face: how to effectively market their services without breaking the bank.  After conducting market research, the author of the article put together a breakdown of the most effective marketing methods for this important field. The top four of the top results are displayed below, along with the percentage of responders who found the technique highly effective:

  1. Website (62.5%)
    You must have a functioning website that ranks high on search engines.
  2. Health Fairs (45.2%)
    Take advantage of opportunities for networking with other health care providers and getting that referral when the time comes.
  3. Sponsorship of Community Events (34.3%)
    A banner ad isn’t enough; you have to be actively involved with the event you sponsor (such as an Alzheimer’s Association or Parksinson’s disease fundraiser)
  4. Writing for Local Magazines and Newspapers (25.8%)
    A great way to build your brand is to write a column or an “Ask the Experts” in the local newspaper dealing with aging issues .

See the original article, Marketing Directly to Consumers of Private Duty Health Home Care.

Four Ways to Deal with Non-Paying Customers

The TemPay Staffing Times recently published an article that highlights a major problem facing modern staffing agencies: cash flow interruptions due to non-paying customers.  In a seasonal and fluctuating industry like temporary staffing, timely payments are extremely important as they are used to cover payroll and other expenses.

Dealing with problematic customers requires a delicate balance between firmness and lenience. The article outlines four ways to deal with these types of customers:

1. Keep on top of trends such as payment histories, so it’s easier to examine problems when they arise rather than figuring it out retrospectively.

2. Before getting frustrated with the customer, make sure that a change in your own protocol isn’t the cause of the problem.

3. Maintain composure while talking with delinquent customers, and focus on indentifying the problem and coming up with solutions.

4. Consider making customers who are routinely behind deliver payment directly to your offices.

If you attempt these steps and the customer still won’t pay, it may be time to cut off services. But, the article points out, if you have made an honest effort to help then the fault lies with the customer, not you. Click here for the original story, Not Getting Paid? 4 Ways to Deal with It.

Trends in Microlending Good for Small Businesses

The Wall Street Journal Online recently published an article highlighting the story of a New York city cab driver who was able to keep afloat in his business through a type of financing called microlending.

Microlending was formerly only popular in developing countries such as Mexico and Bangladesh. This is one positive outcome that seems to be on the rise, in part, in the wake of U.S. economic struggles: Small business owners with no credit history are still able to obtain a few thousand dollars through the process.

This type of lending offers just the right amount of support without setting up small business owners for failure: According to the Business Center for New Americans, a nonprofit lender, the default rate is only about 6%.

Little formal data exists, but bankers report some numbers that indicate the growth of microlending in the U.S. The U.S. Small Business Administration distributed about $47.5 million dollars towards microlending in the 2011 fiscal year – the largest amount in its history. Additionally, in the past ten years the average size of microloans has decreased 17% – down to $11,750; showing a trend toward even smaller loans.

Microlenders can be both for-profit and nonprofit. Nonprofits are able to fund because of private donations and support from federal and state programs.

Large US banks frequently turn down small business for loans, offering them business credit cards instead; which can create even more debt. Many small businesses striving for financial stability and independence
have been frustrated in their efforts because they have so little to fall back on in the first place; but microlending offers some hope for the future of small businesses.

Click here to read the full story Mini Loans Feed Bigger Ambitions.

CBiz Small Business Employment Index is Up in August

Just released: The CBiz Payroll Services announced that its Small Business Employment Index, a barometer of hiring trends among companies with 300 or fewer employees, went up by 1.15% in August, after a decline of 1.57% in July. Additionally, 29% of survey respondents increased staffing, while 20% let go employees.

Moreover, Philip Noftsinger, business unit president for CBiz Payroll Services, said the data sets, taken together, “provide some hope that employment is at least on solid ground and increasing moderately.”

Click here to read the entire announcement: CBiz Small Business Employment Index rises in August.

Overview of Nurse Staffing Accounts Receivable Factoring

When your nurse staffing agency bills clients, you know that medical providers (i.e. hospitals, nursing homes, medical clinics, etc.) can take months to compensate you for your staff’s time. When you use nurse staffing accounts receivable factoring to secure funding for your company, you can:

  • Rest assured that you can pay bills and employees on time.
  • Have the confidence to make the necessary moves toward expansion.

What Is Nurse Staffing Accounts Receivable Factoring?
In nurse staffing accounts receivable factoring, outstanding invoices are converted into cash through a ‘factor’ for a discount. This means that instead of waiting for your clients to pay you for your staffing services, you will be able to use the money your workers have already earned right away.

Most factors offer nurse staffing non-recourse factoring: this allows a factor to be held responsible for unpaid invoices if the staffing agency goes out of business or declares bankruptcy during the time in which the owner’s invoice was factored. Non-recourse factoring does not cover:

  • Very late payments where there is no bankruptcy.
  • Disputes over invoices.
  • General collections issues.

With accounts receivable factoring, you won’t hesitate to accept large staffing requests due to lack of funding.

Click here to read more about nurse staffing accounts receivables factoring.

Factor Finders Helps Factoring Brokers Increase Commissions

The invoice funding specialists at PRN Funding, LLC wanted to share some exciting news with the factoring brokers and cash flow consultants who consistently read our blog.

We have launched a sister company to aid factoring brokers in closing more deals — Factor Finders, LLC.

Factor Finders knows how to get complicated deals done. We have formed extensive relationships with a network of credible funding companies all over the globe. If you can’t find a funding source for your prospect, we can, and we will split commissions 50-50 once a deal is done.

Want to learn more? Check out the video below to learn how Factor Finders can help you get more commissions!

Contact us at 1-855-FACTOR-1 or visit our Factoring Broker Program page on our web site for more details.

Credit Index Drops: Consider Small Business Factoring Instead

Earlier this month, ABFJournal.com, cited a report from the National Association of Credit Management (NACM) that the small business factoring experts at The Factoring Blog thought would be of some interest to our small business owners looking for financing. In a nutshell, the ABF Journal’s Credit Managers Index (CMI) dropped from 54.5 to 53.4 in July.

The article reported the difficulty in predicting the long term effects that the nation’s drought is bound to have on manufacturing factoring customers and invoice factoring clientele that are service providers, which has been hit hardest by the decline, says NACM.

The report indicated a stabilization in credit applications, which dropped from 57.5 to 57.2 between June and July. Dollar collections also dropped, along with a decline in dollar collections. The favorable factor index (the index that measures all of the optimistic components of the report) also dropped from 60.2 to 58.9.

If you’re having trouble applying for a credit card, small business factoring may be the best option for your firm because the process requires no credit check. With dollar collections at an all-time low, it may be time to factor your receivables. Though your clients whose invoices are factored will be subject to credit check, after a 3-5 day approval, invoices take 24 hours to advance.

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