BUSINESS OWNERS, get cash now WITHOUT CREATING MORE DEBT!

• Business-Based Income Streams
• Account Receivables Financing
• Invoices
• Factoring
• Purchase orders
• Warehouse Inventory Lines
• Equipment Leases

Account Receivables Financing

To receive a free quote on factoring your account receivables just fill out our form CLICK HERE.

Account receivables financing is also know as Factoring. Factoring is the sale of your account receivables (invoices) to a funding source, at a discount off the face value, in return for immediate CASH. The funding source is known as the Factor. The process typically works like this: You deliver a product or service and issue an invoice to your customer. Without factoring, you wait 30 to 90 days for payment. With Factoring, the factor immediately purchases the invoice and advances an initial payment of 60 to 80 percent of the invoice amount. In most cases, you'll have the funds in your account within 24 hours. When your customer pays the invoice (payment is made directly to the factor) you'll receive the remaining balance (20, 30 or 40 percent of the invoice amount) less the factoring fee.

To receive a free quote on factoring your account receivables just fill out our form CLICK HERE.

Benefits of Factoring

1. Immediate increased CASH FLOW
2. Capital available without regard to a client's credit rating or balance sheet
3. Expanded growth capacity
4. Greater equity and reduced business debt
5. Funding without incurring new debt
6. The ability to take advantage of vendor's early payment discounts
7. Complete professional collection services, as a part of the fee, freeing up valuable time
8. An end to dealing with the issue of bad debt
9. Efficient handling of all receivables accounting and data entry
10. You can expand your business with improved cash flow

The Cost of Factoring

Generally, more for your dollar!

The factor's fees generally range from 2-10 percent of the face value of the invoice. The fee can vary significantly and is based on, the factor's level of risk, the time the invoices will be outstanding, and other issues that affect the factor's costs.

When compared to the cost of borrowing, factoring is generally assumed to be higher. Factors, however, provide a significantly wider range and higher level of services than do banks. Those services usually more than compensate for the higher cost. It's also important to consider the extra fees and closing costs charged by commercial lenders when doing a cost/benefit analysis between factoring and borrowing.

Case Studies of Cash Flow Problems:

"A BIG ORDER"
Consider the dilemma of Next Generation, Inc. of Coral Gables, Florida: They received a single order totalling $11 million. Mickey Moore, the company's president, was delighted with the order for 2,000 of Next Generation's patented two-level trap house trailers at $5,500 per unit from Sam's Club, a division of Wal-Mart Stores, Inc.. However, meeting the request required a 12-fold production increase. The company did not have enough available capital to finance growth on that scale.

Factoring--both on that and other orders--provided the financial means to pay for supplies and labor. "I would not have been able to deliver on the order without factoring," Moore said.

To receive a free quote on factoring your account receivables just fill out our form CLICK HERE.

"YOU CAN'T ALWAYS BANK ON IT"
Consider the Hunter Group, Inc., a Baltimore consulting firm specializing in financial accounting and human resources information systems. The 13-year-old company was enjoying a period of robust growth after a slump, which started in 1991, when a commercial bank cancelled an existing line of credit. The company rebounded to profitability by mid-1993. After 16 months in the black, a bank loan application made in late 1994 was rejected because the lender wanted 24 months of "positive operating results. The turndown occurred even though Hunter expects revenues of over $11 million in 1994 with assured comparable profits.

Mary Weaver, Hunter's senior vice president and chief financial officer, told the Wall Street Journal the company would turn to factoring its receivables. "Banks are there for you in the good times," she says, "but never in the bad." (Taken from Breakthrough Strategies for Small Business.)

To receive a free quote on factoring your account receivables just fill out our form CLICK HERE.