Storage Unit Auctions

You’ve seen it on TV reality shows and now you’d like to cash in on storage unit auctions as well. Reality TV featuring auction hunters has really heated up interest in these auctions. People are excited by the idea of buying a hidden treasure for only a few hundred dollars at auction. These auctions have … Continue reading “Storage Unit Auctions”

You’ve seen it on TV reality shows and now you’d like to cash in on storage unit auctions as well. Reality TV featuring auction hunters has really heated up interest in these auctions. People are excited by the idea of buying a hidden treasure for only a few hundred dollars at auction. These auctions have been around for a while but their popularity has skyrocketed as these shows have brought attention to them.

Why does it happen?

The auctions happen because the owner of the property cannot, will not, or has forgotten to pay the rental on their unit. The companies that own these units foreclose on and then sell off the contents to recover their lost rent. The property owners loss is your possible gain if you buy it right.

During the foreclosure process the owner can reclaim his property by paying the rent and fees; if not the owners of the storage facility will put an announcement in the paper about the sale. If two or three units are up for grabs, it becomes a feeding frenzy as seasoned and novice auction hunters swarm in.

Occasionally, an auction will get cancelled at the last minute if the property owner comes in and pays their back charges. The storage unit owners cannot continue an auction if the property owner pays his rent. It is only fair and in this case the auction hunters must move on.

What to expect during an auction

Storage unit auctions are informal affairs; all bids are given orally while everyone just stands around the unit being auctioned off and the highest bid wins. The winning bidder must pay right away and usually the winners only have two days or less to clear out the contents, so come prepared with a truck or large van to haul your loot away.

These storage units typically measure 5′ x 5′. A lot of stuff can get jammed into such a small space. During the auction, the unit manager, who is often also the auctioneer will open the unit and show the contents to the bidders for a short time before bidding. This means that you will possibly have only a few seconds to look in and judge your bid. You must be prepared and perhaps this preparation will only come after you have participated in a few of these.

Good signs of possible profit are large appliances and things that will easily sell online like books. Don’t blow all of your money on the first storage unit unless it is clear that it has a lot of high value items.

 

Business Accounts Receivable Financing

Why is business accounts receivable factoring so popular today? Who is doing it, why are they doing it and when is the best time to explore accounts receivable factoring agreements? The main reason for the popularity of factoring is the economic cycles that businesses experience.

As economic cycles turn downward and banks tighten up credit, loans become hard to come by as was in my case during the global recession of 2008-2009. In these tough times, accounts receivable factoring companies are filling in the need by offering the capital businesses need to keep their doors open, and even to grow and expand.

Factoring has become a key alternative finance strategy for many small businesses today. In fact, many small businesses are now preferring factoring over applying for loans with banks and the small business administration (SBA), who often have a more rigorous and lengthy process.

It’s also much quicker to access capital when factoring as opposed to the long and painful process of obtaining a loan. What are some of the more common ways companies are engaging in business accounts receivable factoring?

Trucking companies factor freight to cover wages and salaries for drivers. Staffing agencies factor their invoices so they can pay their head count / staff. In medical accounts receivable factoring, which is a very specialized niche, medical companies factor out receivables owed to them by insurance companies and even the government to fund their day to day needs (expenses) in the short term.

Businesses of all sizes are also pursuing accounts receivable factoring companies because these companies also often offer purchase order refinancing, working capital credit lines, growth or expansion funding, inventory financing and other types of asset based lending where businesses take a loan by pledging their physical assets.

Here are answers to three common questions that must be going through your mind right now:
Why should you factor?

Simple. It is easier, faster and in many cases can be cheaper. Once you are accepted or have a relationship with a solid accounts receivable factoring company, you essentially have a revolving line of credit with them. Think about it, if a company factors your invoices once, chances are they will do it again, and again, and again. They win, and most importantly YOU win.

Here is the other thing. You no longer have to worry about who will process accounts receivables at your business. when you factor, you are essentially outsourcing the entire function. Let them worry about it while you worry about growing your business!

What size business can factor?

Any kind really. However factoring is most common with small to medium size businesses as large Corporates have their own alternative capital or funding sources. The answer is actually simpler than that. If you have receivables, you can for sure factor.

When should you consider business accounts receivable factoring?

Do you need cash to grow and expand your business? Do you need more funding to run your day to day operations? Who doesn’t?

Are you having trouble or simply don’t want to acquire a business or SBA loan? If you answered yes to any of these questions and you feel you are ready to take the next step in your business, then YOU SHOULD consider accounts receivable factoring.