Account Receivables Funding

In many situations, Account Receivables Funding is more appropriate than bank financing, because:

• It is based solely only on the accounts receivable.  We don't look at any other of your assets.  Instead we look at the credit worthiness of your customer whose A/R you wish to sell.  They will be the one paying us; not you.

• Smooth cash flow can continue as long as you wish to continue selling the monthly A/R.

• No requirement of periodic payments or interim payoffs.  New sales continuously create new power to obtain cash, and the business does not have to deal with renewal of loans or worry about maturity dates.

• Gives a business increased access to cash as sales and receivables increase.  There is no ceiling beyond which the factor must stop providing cash. The more sales a business makes, the more cash it can draw.  The factor does not concentrate on the business debt/equity ratio to provide funds, as banks do.

• Offers a dependable, continuing source of cash without the necessity of making separate loan applications.  The first time you apply will take up to 15 days to get started.  After that, when you decide to sell you a/r just a phone call will do.  Quick cash!

• Avoids the necessity of obtaining funds from venture capitalists, who receive an interest in the business and generally have a say in how the business is run.

• Saves the business owner precious time waiting for a loan board to grant or deny his or her loan.  Loan boards’ decisions are influenced by many considerations, and the outcome is often unpredictable.  With factoring, periodic delays and negotiations are eliminated, allowing the business owner time to do what he or she does best – run the business.