Tag Archives: Factoring
Cover Small Business Insurance Costs via Factoring
The recent economic recession has made running a business a bit challenging, so when it comes to expenses like insurance, many companies believe that it is not necessary. One survey says that as a small business grows, owners have a hard time understanding how much insurance they need.If you are a small businesses in need of insurance but you don’t believe that you can afford it right now, then you might think about how factoring could help provide you with needed cash every month. (Source: The Hiscox USA Small Business Survey of 501 small business executives.) But insurance is a good way for a small business to be prepared for unexpected happenings – like a flood, or fire. That’s why if you are a small business owner, you need to think about protecting your business in case of other bad things that could happen like an unexpected lawsuit, or even the death of a partner or employee.
However, insurance is a good way for a small business to be prepared for unexpected happenings – like a flood, or fire. If you are a small business owner, you need to think about protecting your business in case of other bad things that could happen like an unexpected lawsuit, or even the death of a partner or employee. If you are a small businesses in need of insurance but you don’t believe that you can afford it right now, then you might think about how factoring could help provide you with needed cash every month.
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The Hiscox Survey found a few major differences in the insurance needs among small businesses — although 72 percent did agree that when a business is launched, ther owners should purchase insurance as soon as possible. This survey also found: 21 percent of established yet small businesses (annual revenues over ,000,000) versus 9 percent of micro small businesses (annual revenues of less than 0,000) were twice as likely to cite “not understanding how much to insure their business for” as the number one mistake small business owners make when purchasing insurance.
Here are some other facts culled from the survey:
— 45 percent versus 23 percent of micro small businesses are twice as likely to purchase insurance through referrals compared to established small businesses. — 69 percent versus 39 percent of established small businesses are much more likely to purchase insurance through brokers compared to micro small businesses.
What’s more, as your business grows, your insurance needs will change and grow as well. So your company may have outstanding invoices that could be leveraged to help pay for increased insurance costs. simply contact a factoring company and make arrangements to begin factoring invoices. The level of complexity and confusion about the proper amount of insurance coverage that you will need increases along with the growth of your business. Insurance provides the security you will need so you won’t worry.
Don’t be penny wise and pound foolish – because ultimately a lawsuit against your business could be devastating. There are many different types of insurance, but insurance is available for nearly any business risk from worker’s compensation insurance to home-based business insurance. It is important to look at the cost of the premiums and make sure you can justify the coverage for a given risk.
Today a popular type of business insurance is general liability or umbrella liability insurance. This usually covers legal negligence issues and will protect you against bodily injury or property damage, settlement bonds or judgment lawsuits, or medical expenses. so if you are a small business in need of insurance protection, but cannot afford it right now, then think about how factoring could help provide that needed cash every month to cover your payments.
In summary, rather than waiting 30, 60, or 90 days for invoices to be paid, accounts receivable factoring has been around for more than 4,000 years, and it is an extremely fast way to turn your company’s receivables into cash fast, so you can take care of critical needs, like insurance, for your small business.
Kristin Gabriel works with The Interface Financial Group (IFG), a company providing short-term financial resources including invoice factoring, serving clients in more than 30 industries in the United States, Canada, Australia and New Zealand. IFG operates on a local basis with expertise in accounting, finance, law, marketing and banking. www.ifgnetwork.com
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Factoring Invoices for Small Business Insurance
Article by Kristin Gabriel
Factoring invoices just may be the new trend insofar as it’s an excellent way for small businesses to be prepared for unexpected events. What if there is a death of a partner or employee, a lawsuit, or a natural disaster? If you are a small business that needs insurance protection, but cannot afford it right now, then think about how invoice factoring for small business could help provide the much needed cash to cover insurance costs.
As we all know, there are many types of insurance for nearly any business risk that you can think of, from worker’s compensation to home-based business insurance. That’s why it’s important to look at the cost of certain premiums then make certain the coverage is justified.
Here’s one example: worker’s comp helps pay for an employees’ medical expenses and missed wages if they get injured while they are on the job. The amount of insurance employers must carry, rate of payment, and what types of employees must be carried varies state by state in the U.S.
There are different needs, for instance, some business owners purchase general liability or umbrella liability insurance, which typically covers legal negligence issues, and protects against bodily injury or property damage,judgments or settlement bonds, medical expenses, or lawsuits.
What’s more, manufacturing companies that distribute retail products have to worry about coverage because they are liable for product safety and defective products. Any service rendered may be capable of personal injury or property damage, defective products, negligence, and breach of an express or implied warranty. Typically, most home business owners don’t realize that homeowners’ insurance policies do not usually cover home-based business losses. This includes personal and advertising injury, loss of business data, crime or theft, disability and property, as well as professional liability insurance.
Of course today, Web-based businesses need specialized insurance that covers liability for damages that might be done by hackers or computer viruses online. There are special e-surance policies that cover specialized online activities, including lawsuits resulting from banner advertising or electronic copyright infringement. There is also insurance that covers losses during fires, or even natural disasters.
Due to today’s economy, many small businesses need insurance protection but can’t afford it. That’s where invoice factoring for small business could help provide that much needed cash every month to cover insurance bills and provide protection.
Factoring has been around for more than 4,000 years and it is an extremely fast way to turn accounts receivables into cash. Rather than waiting 30, 60, or sometimes even 90 days for invoices to be paid, today’s spot factoring services allow you to get cash fast, and for only one invoice at a time.
About the Author
Kristin Gabriel works with The Interface Financial Group, http://www.ifgnetwork.com, North America’s largest alternative funding source for small business. The company provides short-term financial resources including invoice factoring, serving clients in more than 30 industries in the United States, Canada, Singapore, Australia and New Zealand.