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My Wedding Date is Set!!
2007-12-04 17:30:00
My wedding is fast approaching and things will have to start are starting to fall into place! My fiancee and I will do food tasting at the banquet hall tonight to finalize the food menu. This means that the per table expense will be worked out and I should have an update for everyone. Remember all the wedding budget posts I had for a budget of $10,000? The projected expense is WAY over that number so stay tuned in the coming days as I show you the newest projection of what it will cost us! We also made a custom invitation card in Taiwan so I want to share these with you! Let me know what you think! I really want to invite everyone (even the blogging community) but it will be extremely hard to keep expenses under control with so many people in the California area! If a very wealthy person reads this and want to sponsor a side party for the blogging community, do not hesitate to contact me!! ---Related Articles at Personal Finance Blog by Money Ning:Money Stories: The Most Pr...
More About: Wedding

Now is a Great Time to Conduct Annual Financial Maintenance
2007-12-03 17:30:00
December is here and it means that 2008 is just around the corner. Most people tend to start relaxing and enjoy the holiday celebration. With work starting to slow down, it is the perfect time to start looking into a few things before the year is over! Roth IRA - If you haven’t already done so, start contributing up to $4,000 ($5,000 if you are 50 or older) for the year 2007. The deadline is April of 2008 for this year’s contribution, but don’t put it off as April will be here before you know it. 401k - You should at least look at your 401k plan periodically to see if there are any adjustments that need to be made. You should also consider increasing your contribution percentage for next year so you can save more money! Those that recently got a raise should seriously consider this because you won’t know the difference of contributing more as your take home money would not decrease. Another thing to check your 401k plan for is your asset allocation. It is alw...
More About: Time , Financial , Great , Maintenance , Annual

Casual Sunday Links
2007-12-02 21:47:00
The past week was very tiring and stressful because of the thanksgiving holiday the week before! There is just double the workload when you come back from the holidays so those days off just means delaying your work rather than the traditional thinking of “getting days off”! To think of it optimistically, the fact that there are many things to do means you are important to the company! While I try to trick convince myself that I love my job, enjoy these fine articles from around the blogsphere! My Two Dollars asks whether anyone gets cars for Christmas! I’m sure everyone will pretty much say no but I’ve heard in my high school days where someone bought a car for his girlfriends for her birthday so never say never! Money, Matters and More Musings talks about everything he learned from his job hunting experience! Gen X is heavy on the financial market articles and this is a great one that tries to predict the future by looking at the past of the stock mar...
More About: Links , Sunday , Casual

Winners Winners Winners!
2007-11-30 23:00:00
Check your inbox because I’m happy to announce that I emailed the winners of the $200 giveaway! Thank you for joining and remember to keep subscribed to my RSS feed and email because more giveaways are coming as the subscriber count passed 600!! Note that I didn’t list the email pattern as done in the past because we ended up having two winners with the same email pattern for the HP SD Card Reader which I ended up honoring without letting everyone know Good luck on future giveaways!!! Only Last day to enter the $200 giveaway! CLICK HERE for another chance to win big! ---Related Articles at Personal Finance Blog by Money Ning:Winners of The Quiet Millionaire Giveaway and Another Contest TomorrowCelebrating 500+ Subscribers and $200 To Give Away To My Loyal Readers

What to Spend Money Buying For Christmas?
2007-11-29 17:30:00
No matter how frugal we are, everyone eventually ends up spending money. Christmas is coming up so the need to make difficult buying decisions will fall onto our shoulders. It is at these times that people who are frugal can really spend much less money than people who aren’t. It is also during these holiday times when our wish list suddenly pushes itself onto the forefront of our minds. Not every wish list item is created equal however. Some can cost tens of dollars while others can be hundreds, if not thousands. We cannot buy everything and probably cannot even afford some items on the list. I for instance can scratch the Ferrari off this Christmas’ shopping list so let’s not focus on those. Do we just buy the most expensive item on the list that’s remaining? Is putting a monetary value to it appropriate? What do you think? How do you decide what to get for Christmas, either for yourself or for others? Only Last day to enter the $200 giveaway! CLIC...
More About: Buying , Money

The Billionaire Investment Guru within Me Called Billy
2007-11-28 17:30:00
Billy always convinces me to buy and sell stocks at the perfect time.  He must be a billionaire because he always asks me to give some of it up as he probably doesn’t need anymore.  When there is a selloff in stocks, he tells me to follow because that’s probably when the market is at its bottom; while the opposite is true too because he always tells me to buy stocks when everyone is optimistic, signaling a top in the stock market. A few years ago, 2003 to be exact, Billy told me “It’s time to sell your stocks!  Look at your negative returns!  Cash out your index funds because you should put your money somewhere else!”  He is really good because the next few years turned out to be great for the stock market.  A couple of days ago when everyone was selling stocks, he tries to convince me again to sell because we needed to join everyone else.  He must’ve seen yesterday’s big move up coming. Billy is truly my friend because he doesn&rsquo...
More About: Investment , Billy , Billionaire , Guru , Billion

Your Chances for Winning $200 Ends This Friday
2007-11-28 05:51:00
Hurry up if you still haven’t become an email subscriber yet because the chance to win the $200 giveaway is ending this Friday !!! Other than getting updates through email, you can also subscribe to my feed and leave a comment on the page that’s only accessible through the RSS!! Better join now before it is too late and good luck to everyone who enters! Only 2 more days to enter the $200 giveaway! CLICK HERE for another chance to win big! ---Related Articles at Personal Finance Blog by Money Ning:$200 Giveaway Contest - Nov 4, 2007Your Chance to Win a Copy Of Microsoft Money Deluxe 2007 Ends TodayHow Much Did We Spend on Thanksgiving’s Black Friday Sale?Happy Thanksgiving and US Public HolidaysPersonal Finance Garbage
More About: Winning , Chances

What Should Individual Investors Do With All the Fear in the Stock Market R
2007-11-27 17:30:00
Let’s face it. We as individual investors are very afraid right now. Did you notice all the articles from us personal finance bloggers about the market throughout the year and the lack of them right now? Part of it is because we all want to cover the thanksgiving spending etc etc, but it is also because many of us don’t even want to think about our investments! If March or August of 2007 was a fearful time for individual investors, now is many times worst! So, what is our investment advice now? What should we do in these times when people are telling us that the decline just started because all the mutual fund investors (the general public) will start selling once they receive their quarter statement and realize that their investments returned nothing for the past year? Instead of giving some general advice, let’s break it down to different types of investors so the advice is more specific. There are three types of investors: passive investors, stock pickers,...
More About: Stock Market , Market , Stock , Fear , Individual

I Keep Buying a Cheaper Magellan Maestro 4040 GPS
2007-11-26 17:30:00
Ever since I lost my GPS a few months ago, I bought another 5 GPS devices for myself! Although I didn’t lose any one of them, I kept buying another one for the same reason! This is the story of my GPS device purchasing mania. Purchase #1 I went to Costco 6 months ago to look for a replacement GPS unit. I found the Magel lan Maestro 4040 selling for $399.99 but I wasn’t sure if I wanted this since it wasn’t the cheapest unit around town. A Costco employee came by and explained to me I should just purchase it because they have a 90 day no questions asked money back guarantee. After contemplating for exactly 25 seconds, I decided to get it. When I got home, I started regretting. I knew that I just bought this on impulse, without research and without really thinking about it. I should refund it and I did. Purchase #2 A few weeks went by and I realized that I needed to do much more preparation on my business trips without a GPS device so I spent some time researching online ...
More About: Buying

Linking to You and Getting Ready for Work Edition
2007-11-25 21:06:00
It’s been a good 4 day holiday but work starts again tomorrow! I feel a little bummed that sleeping in tomorrow isn’t an option which reminds me of the times when it was the end of the Christmas or summer holidays when I was still in school! I remember that I used to feel so sad the last week of the holidays because school is starting. However, I also remember that once school started, I was happy to see my school friends and get to sleep inside the classroom!!! Enjoy these articles for Sunday! Double Journey talks about why he believes it is so hard to double his money in one year! In his journey, I say good luck! Laura lists 17 tips to be productive with instant messaging! Ever since I installed ICQ probably 10-15 years ago, I always thought that it was such a waste of time! I remember talking to my friends day and night (actually, more like night and midnight) for hours on end! This will definitely be very helpful My Two Dollars points us to some news about ...
More About: Work , Linking , Edition , Ready

How Much Did We Spend on Thanksgiving’s Black Friday Sale?
2007-11-24 18:30:00
Black Friday is behind us so how much did we spend on this holiday sale? Did any of you actually line up the night before at your favorite store to make sure you get that special discounted product? I will be the first to vote and I’m sure everyone looks forward to seeing how much others have spent too (Don’t worry, this poll is anonymous so don’t be embarrassed if you bought a yacht yesterday!) How Much Did You Spend on Black Friday Shopping? Nothing!!! Save, Save, and Save! $1 - $50 $51 - $100 $101 - $500 $501 - $1000 $1001 - $5000 $5001+ (I love Thanksgiving!) I don’t live in United States View Results  Loading … Black Friday in United States is the day after Thanksgiving where many retail stores will put out a huge sale to clear out their merchandise. For many consumers, this also represents a way for them to go shopping at a major discount off regular price. Only 2 more weeks to enter the $200 giveaway! CLIC...
More About: Sale , Black , Hank

A Very Tiring Black Friday Today
2007-11-24 03:10:00
Busy day! Only 2 more weeks to enter the $200 giveaway! CLICK HERE for another chance to win big! ---Related Articles at Personal Finance Blog by Money Ning:How Much Did We Spend on Thanksgiving’s Black Friday Sale?Fees when investing in fundsThe Ridiculous Housing Award Goes To…Wells Fargo’s Useless My Spending ReportBlogsphere Articles While Dow was Tumbling
More About: Today , Black Friday

Happy Thanksgiving and US Public Holidays
2007-11-22 17:58:00
Happy thanksgiving!!! Since most of us are in the US, we will be enjoying our holidays for the rest of the week. Speaking of holidays, US has one of the fewest paid holidays in the world! For example, I only get off 7 public holidays this year: Monday, January 1 New Year’s Day Monday, May 28 Memorial Day Wednesday, July 4 Independence Day Monday, September 3 Labor Day Thursday, November 22 Thanksgiving Day Friday, November 22 The Day After Thanksgiving Day Tuesday, December 25 Christmas Day With 10 working days of paid vacation a year, I do not get many days off! This is interesting because in Asia, everyone works longer hours because staying after hours is the norm. However, they usually have more vacation and public holidays. I wonder who ends up working more hours and which approach makes people happier? Which do you prefer? Personally, I like working longer hours everyday but having more paid vacation because I end up working after hours now anyway! ...
More About: Holidays , Public , Happy , Hank

Is My Citi Credit Card Using Creative Marketing or Is It Up To Something El
2007-11-21 17:30:00
My Citi bank credit card updated their website recently and something very important changed. I noticed that instead of showing the statement balance, it is showing the current balance (see red cross in picture). I never knew the difference before but current balance apparently is the statement balance + unbilled balance. The statement balance on the other hand is moved to the right in small writing (see green line in picture). The only reason why I noticed the change is that I almost overpaid my bill this month. As you can see, I need to pay $5,105.28 to avoid any interest charges by Nov 28. However, the amount that Citibank wants me to think is due on Nov 28 is $5,839.46! I wonder if they are only showing this for customers that pay in full every month (thus not letting Citibank make money on interest). The minimum amount due is also pretty visible since they are hoping everyone just pays the minimum balance! The website actually tries to trick me even further by having the d...
More About: Marketing , Creative , Card , Credit

Why Do People Give Out Free Loans to Companies by Buying their Gift Cards?
2007-11-20 17:30:00
My Uncle buys gift cards from coffee shops for his own use. He told me that it is very convenient because he goes to the coffee shop everyday and can just order his latte and charge it on the card. When the card runs out of money, he can just reload it with a credit card. All this did not really make sense to me at the time but I figured I should go home and think about it before I disagree with his theory. After some thought about it at home, I still do not get it! It seemed to me that paying with a credit card would give the same convenience that a gift card would. When I pay with my credit card at Starbucks, I do not even have to sign for my purchase! Other than the fact that I would get one transaction each time I buy a drink instead of one per gift card purchase, I really cannot see any advantages of using a gift card. However, the disadvantages of buying the gift card means that I am prepaying for my purchase ahead of time. I am in effect giving out an interest free loan...
More About: Companies , People , Buying , Loans , Free

My Dad Quit After 50 Years of Smoking and So Should You
2007-11-19 17:30:00
Recently, my dad quit smoking after years of us encouraging, motivating, persuading, yelling, and cussing (you name it, we’ve done it). It was a struggle for so many years, but the fear of sickness finally convinced him to quit smoking. Many of us smoke (in fact, one third of all male in this world do), but none of us ever think about the harm it has on our body and our wallets. From experience, I won’t dare try to convince anyone to quit smoking, but here are some financial facts we should all consider every time we light a cigarette. At $5 a pack of cigarettes, my dad could’ve accumulated $1.6 million in investment and savings. This is assuming that he would invest or save the money weekly for 50 years earning 10% annually. 50 years ago, the cigarettes were not $5, but my dad smokes more than one pack of cigarettes many days of the year too. This also does not include the cost of lighters or matches. His life insurance is much higher because of his &ldquo...
More About: Smoking , Years , Quit

Enjoy the Personal Finance Articles While I Exercise On My Wii
2007-11-18 21:11:00
To validate the benefit of more exercises through the use (play) of my Wii, I went to the golf course yesterday.  I was amazed that I can hit the ball more consistently and that the ball traveled further!  I had to adjust to the new found distance but it was a nice surprise!  This is exciting for me and will definitely keep me addicted to my Wii even more.  While I play the video game console, while don’t you check out these great articles from around the blogsphere? My Two Dollars discusses how he picked out his health insurance plan.  If you are also a self-employed individual, remember to check this out since you might learn a thing or two! Get Rich Slowly shows us a great way to deal with telemarketers! Living Off Dividends sights that Ben Stein is buying ETFs that tracks the financial sector!  The article also says that another money expert, Jim Rogers, thinks the financial sector is in deep trouble.  This just goes to show to never trust the experts because one o...
More About: Personal , Personal Finance , Articles , Finance , Exercise

Pay Day is Not Every Day But Today and Here is My Frugal Way
2007-11-16 17:30:00
I will feel rich, I will feel happy, and I will feel obligated to spend some money. Or will I? I actually get a paycheck every 2 weeks, and other than feeling richer on paper, there really isn’t much different on this day. First thing in the morning, I visited Wells Fargo’s website to make sure the direct deposit went through. Then, I logged into my credit card website to see how much I owe in the next payment. Once I subtracted the difference, I deposited most of my paycheck into the online savings account to be allocated to my investments. What I do is quick, boring but effective because I’m able to save so much money this way. By moving my income after set expenses into my savings/investments, I won’t feel like I have a ton of money to slurge. I know this is all psychological but it works. In a way, this is the manual and enhanced version of “automatic savings” and “pay yourself first”. I do this process manually because I am not able to make this automatic...
More About: Today , Frugal

I Almost Burned Down My Apartment
2007-11-15 17:30:00
That is what happens when you try to heat up a sandwich wrapped with tinfoil in the microwave. Immediately after I pressed the start button, I heard a buzzing sound and I saw sparks from the tinfoil to the ceiling of the microwave. Then the tinfoil started catching fire and luckily I was hanging around the kitchen because I was able to press stop in time before disaster happened. Otherwise, my apartment could end up like this. Needless to say, my sandwich was a little burned and had a weird smell. After replaying the scene in my head, I realized that it could have been a financially catastrophic mistake. Not only will I need to buy a new microwave, I would have to pay for damages to the apartment and probably anything else that was damaged depending on how far the fire reaches. All the damages because I was careless and did not know any better. This brings up a good topic for personal finance because carelessness and lack of knowledge keeps us from becoming wealthy. Being C...
More About: Burn

Have You Joined the Giveaway Yet?
2007-11-14 17:30:00
The $200 giveaway is still going on and now is the time to join! You can win prices like: 2 x $50 Amazon gift certificates 5 x $20 Barnes and Noble gift certificates The rules to join are simple. Either: 1) Become a email subscriber of Money Ning and receive personal finance articles delivered to your inbox or 2) Leave a comment from the post accessible from my RSS feed (Guys and Gals, only one comment will suffice :)) More ways to win will be announced up until the day of the drawing so check back often! CLICK HERE to go to the post that will increase your chances to win the $200 giveaway! ---Related Articles at Personal Finance Blog by Money Ning:Last Chance to Enter the Starbucks Gift Card GiveawayStarbucks Gift Card GiveawayThe Starbucks Gift Card Winner is…$200 Giveaway Contest - Nov 4, 2007Your Chance to Win a Copy Of Microsoft Money Deluxe 2007 Ends Today
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ETrade Took Me to School and I Still Own and Love That Stock!
2007-11-13 17:30:00
Not long ago, I posted about owning shares of ETrade (ETFC) which quickly became one of the most commented posts as Citigroup’s analyst came out on Sunday and said the company might go bankrupt. I received many emails and comments from loyal readers about the news and questions of the whole thing so I want to use this post to address all the questions for everyone’s benefit. Question: Do you still own shares of ETrade and what was your cost basis? Answer: Yes I still own stocks in ETrade and yes it was hammered VERY badly on Monday. However, I have not sold any shares either. From where it was (a high of $28 per share), it’s been going down for weeks till today’s closing price of $3.59. Although I didn’t buy at $28 per share, my average price per share was still $11.96 so today’s price represent a good 70% below my cost. Question: Are you buying anymore shares of ETrade? Answer: No. I have put in as much money into ETrade as I want to in any o...
More About: Love , School , Stock , Etrade

Think About the Money You Are Earning Every Hour!
2007-11-12 17:30:00
It is Monday and most of us are all back to work. If you rather be somewhere else right now, then this article is for you!! Everyone knows (and probably complained before) that lawyers charge us per hour of their services. However, there are many other professions that do the same thing. If we think about it, most people that have a job technically do. We work 40 hours a week (hopefully), and get paid for the work that we do during this time. If we don’t feel that we are charging per hour, then we should not complain ever again about how many hours we are working because we would otherwise be paid to get things done and not by time!! If you have complained before, you should have a value of your time (divide your salary by the hours you work). For the rest of the article, let’s assume that our story character Joe earns $30 per hour (equating to $62,400 per year before tax at 40 hour work weeks). This means that every time Joe works 60 minutes during work hours, it is wort...
More About: Money , Hour , Earning

Screw The Depreciating US Dollar
2007-11-08 17:30:00
We listen to TV, radio shows, and podcasts mentioning it.  We read websites, blogs, and newspapers discussing it.  We talk to our colleagues, friends, and family about it too.  We are living through it, and we will survive past it.  All we need to do is calm down and forget about it. Yes, I said “forget about it”.  Stop listening, talking and thinking about it because we got better things to do. There are approximately one billion things the US dollar affects.  Some are negative but some are positive for us. How can anyone gather all the factors and say it’s good or bad?  All we end up doing is hearing, reading and seeing one thing and be optimistic, then be pessimistic the next. Most importantly, there is not a thing we can do about it.  We can buy foreign currency, buy gold, and buy foreign stocks but we will still be worried because all our assets and income is in US Doll ar . The reality is that this situation is here to stay for months if not years.  Le...
More About: Screw , Reci

Paycheck Frequency Poll Results and Discussion
2007-11-07 10:07:00
A while ago, I asked readers which paycheck frequency would be best and here are the results! Which paycheck frequency is better? Weekly Bi-weekly Monthly I don’t care View Results  Loading … Weekly (43%) – This is what I voted on (and also the most popular)! I feel that the more frequent my paycheck, the fewer days my money is on loan to my employer. It might drive my accountant crazy, but that’s a headache that falls under someone else’s responsibility! I can see that this is a problem for employees that are getting checks as their paycheck, but those people should really look into getting direct deposit through their bank. Nice, easy and most frequent gets my vote! Bi-weekly (35%) – The standard of North American companies and almost just as popular as the weekly paychecks! I wonder how many people picked this option just because it is what they are used to (in which case they should have chose “I don’t care&r...
More About: Poll , Discussion , Frequency

We Should Buy Index Funds Instead of Stocks Even If We Can Beat the Market
2007-11-06 16:36:00
Many of us that frequent personal finance sites are passive investors. We buy index funds because we aren’t convinced that anyone can outperform the market in the long run. However, some of us still buy stocks because we believe beating the market by taking on more risk is possible. Some of us fail, but even if we succeed, we should buy index funds. Why? Our goal is to become wealthy and not beat the market. Many of us feel that our money will grow faster if our returns are better. While this is certainly true, imagine how our attitude towards money is affected when daily fluctuations are high. Some of my stocks are pretty volatile, so I look at my performance daily (buying more and selling shares when needed). Recently, the value of my portfolio changes more than $1,000 per day at least 30% of the time. That means that I could be $1,500 richer one day, and $3,000 poorer the next. Let’s say today’s move was $3,000 to the down side. Why would the $5 dollar Starbucks...
More About: Stocks , Market , Beat , Index , Funds

Why My Nintendo Wii is My Best Investment of The Year
2007-11-05 16:30:00
Yesterday, I finally took the plunge and joined millions of other people and bought a Nintendo Wii. Like many personal finance bloggers, I’m here to blog about the purchase. However, this is not a post to justify my purchase. In fact, I know it was well worth it, as indicative of me purchasing the machine. This post is about why I think you should buy one too. It actually took me since Nov 19, 2006 (the day the Wii was released) until yesterday to finally decide that this game console was worth the $249.99 + tax. Since that day a year ago, I have been contemplating whether or not I should get this game console. All this time, I thought it was a luxury purchase. It is $250 that can be put into a savings account, or into investments (like at least 25 shares of ETFC with some $$ to spare) I keep thinking. The thought of a personal finance blogger buying luxury goods kept me from purchasing the console until a couple days ago when I realized that the machine is not an expense b...
More About: Nintendo Wii , Investment , Year

Read Personal Finance Articles and Increase Your Chances to Win The $200 Gi
2007-11-04 17:30:00
Today is Sunday which means it is blogsphere linking time! On top of that, those that are my RSS subscribers will get another entry into my $200 giveaway! All you have to do is log into your favorite RSS reader, load up my feed and navigate to the post where you can leave a comment to get another entry added! While you are busy trying to win $200, check out these articles! Modern Worker talks about why conceived convenience is a rip-off! I know I’m a victim sometimes but how many of you are also? Mark discusses all his income streams in this article. Since everyone is always nosy (myself included), go check it out! Personal lyFinance d lists some great services that urban cities provide to save you transit cost. (Sorry, urban cities only…) Sun shares with us the ultimate guide to consumer spending which lists a bunch of websites where you can go to for better deals! My Two Dollars has a great piece about why we should avoid bankruptcy even if we have piles of debt! G...
More About: Personal Finance , Articles , Read

Did You See Everyone’s Feedburner Subscriber Count Drop?
2007-11-04 09:20:00
It is 1:20am PST and everyone’s RSS feed subscriber count seems to have dropped heavily just now!  Maybe it has to do with the time change but I wonder what happened!  Mine dropped by about 30% but other have dropped more than 60%.  For example, one of the more popular blogs have dropped from 30k+ to 13k.  Yikes.  I hope this is fixed soon In the meantime, maybe it is time to go to sleep. ---Related Articles at Personal Finance Blog by Money Ning:Last Day to Get a Free HP SD Card Reader$200 Giveaway Contest - Nov 4, 2007My Magic Ball Told Me The HP SD Card Reader Winner Just Now…Winner of the Microsoft Money 2007 Deluxe is…Win a Free Copy of Microsoft Money 2007 Deluxe
More About: Feedburner , Count , Subscriber , Drop , Subs

October 2007 - Best Articles of Personal Finance with MoneyNing
2007-11-03 17:30:00
October has been a great month as we are hitting new highs in traffic and subscriber count! This cannot happen without you so thank you for your continual support! To show my appreciation, I’m giving away $200 so good luck in the drawing! In the meantime, enjoy these great articles which were picked from the month of October. Getting Used to the Debt Situation Is Keeping Money in Paypal a Good Idea? Zecco Needs to Hire a Marketing Team and Why I Use ETrade Financial Feeling Guilty to Spend Money on Anything Would We Really Choose to Fulfill Our Dreams Once We Reach Our Goal? Decided to Not Pick Up My Lucky Penny and Nickel What is Considered a Low Cost Index Fund Reduce Your Taxes Forever Does Always Thinking About Money Really Make Me Happy? Why Do We Read and Follow Money Tips But Never Become Rich? Oh My God I Own Shares of ETrade (ETFC) What to Do Immediately After We Become Debt Free I hope you continue to support this site! Please let me know if you have any sugges...
More About: Personal , Personal Finance , Articles , Finance , October 2007

Invoice Factoring with a Factoring Company
2007-11-03 13:37:00
The accountant once asked our boss to consider having companies handle our accounts receivable to reduce risk. The extra fees was like paying insurance to make sure we get paid because sometimes it is hard to tell if our customers have the cash to pay us on our invoices. At the time, I didn’t know that it was called invoice factoring. Factoring is basically selling your accounts receivable to some other company at a discount so you can get cash immediately. Most companies usually don’t do this because they are in effect getting less money for their products/services, but sometimes it make sense because there are some customers that do not pay on time, while others don’t pay at all. Another advantage of using a factoring company is to help provide needed financing. Sometimes, new companies have a hard time getting loans because there is a lack of established longevity. By using factoring services, the company gets immediate cash flow which yields the same resul...
More About: Company