The Sobanco Blog

Payroll Funding for Staffing Companies

Staffing companies face unique working capital challenges. The cash crunches nearly all staffing firms face is primarily the result of the payment terms that the staffing firm’s customers require at the outset of a relationship. However, long payment terms in itself is not necessarily the issue. Nor is it the cash intensive nature of supplying Read More

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Things to Look for in a Factoring Company

Is your business currently factoring its receivables? Are you thinking about engaging in a factoring relationship? If so, there are a couple of things you need to look out for when evaluating potential funding partners and their factoring contracts. 1. Flexibility First and foremost, don’t get locked in to a long-term contract. Contracts with one Read More

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Tips for Improving Customer Payment

For many companies Accounts Receivable collection can at best be described as a chore and at worst as an anxiety-inducing experience where one large delinquent customer can put their own business in jeopardy. As a bank that offers factoring, or Accounts Receivable financing, The Southern Bank has a wealth of experience optimizing accounts receivable collection Read More

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Comparing Factoring Companies

If you’ve already determined factoring, or Accounts Receivable financing, is the right fit for your business or you’re in the early stages of researching and comparing factoring companies, it’s important to keep a few things in mind. Get it Right the First Time First, there is no shortage of options. In fact, there are hundreds Read More

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Five Causes of a Cash Crunch

Healthy cash flow is the lifeblood of all businesses. Without adequate reserves of cash, owners stay awake at night thinking about debt coverage, meeting payroll, dwindling inventory levels, covering taxes, etc. While The Southern Bank’s clients are each unique, there is typically one of five key causes for their liquidity concerns. These include: 1. Rapid Read More

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Cash Flow Problems and Customer Payment

What do ad agencies, staffing companies, manufacturers, and contract research organizations all have in common? In addition to supplying products and services to Fortune 500 companies, they’re all subject to the same strain caused by one of the latest trends in corporate finance – longer payment terms. More often than not, cash flow problems and Read More

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