FACTORING --------WHAT IS IT? (AND.....WHERE HAS IT BEEN?)
• CONVERSION OF ACCOUNTS RECEIVABLE INTO OPERATING CASH FOR YOUR BUSINESS.
WHO NEEDS IT?
• SMALL & MEDIUM-SIZED BUSINESSES, INCLUDING NEW BUSINESS & WOMEN AND MINORITY-OWNED BUSINESSES, THAT CAN'T CURRENTLY GET CONVENTIONAL FINANCING.
• ANY BUSINESS THAT NEEDS ADDITIONAL OPERATING CAPITAL.
• BUSINESSES THAT WANT TO EXPAND AND NEED A CASH FLOW INJECTION.
• BUSINESSES WITH TAX LIENS (OR PROBLEMS THEY ARE TRYING TO WORK OUT WITH A TAXING AUTHORITY BEFORE A LIEN IS PUT INTO PLACE).
• BUSINESSES THAT ARE WORKING THROUGH EITHER CHAPTER 11 OR A BANKRUPTCY.
WHAT ARE THE OVERALL ADVANTAGES TO FACTORING?
• FAST & EASY! ONCE A CLIENT HAS BEEN SET UP, MONEY CAN BE WIRE-TRANSFERRED TO THEIR BANK ACCOUNT WITHIN 24-48 HOURS!
• NO LONG-TERM CONTRACTS ARE REQUIRED AND YOU CHOOSE AND PICK WHICH INVOICES ONCE AN INVOICE IS PURCHASED, THE FACTOR ASSUMES FULL RESPONSIBILITYTO SELL. NO ADDITIONAL "DEBT" ISFOR ITS COLLECTION (UNLESS ANOTHER OPTION IS CHOSEN). IMPROVES CASH FLOW TO HELP GROW YOURBEING ACQUIRED - AN ASSET IS BEING SOLD! BUSINESS WHICH, IN TURN, MAKES YOUR BUSINESS MORE ATTRACTIVE TO CONVENTIONAL NO FINANCIAL STATEMENTS NEEDEDFINANCING - IT HELPS ESTABLISH YOUR BUSINESS! IN SOME INSTANCES.
WHAT ARE THE BENEFITS WE SEE DAILY FROM FACTORING?
• CONSIDERABLY LESS PAPERWORK THAN BANKS!
• CUSTOM-TAILORED PROGRAM TO YOUR NEEDS.
• GET CASH FOR OPERATING EXPENSES - WHEN NEEDED - AND WHEN YOU CAN'T GET IT ANYWHERE ELSE!
• INTERESTED IN YOUR CUSTOMERS' CREDIT HISTORY - NOT YOURS
• CONTINUOUS SOURCE OF OPERATING CASH
• PROVIDES CREDIT SERVICES (SCREENING & MONITORING, EARLY DETECTION OF CUSTOMER SERVICE PROBLEMS)
• GET INSTANT CREDIT REPORTS ON PROSPECTIVE CUSTOMERS AND CONTINUOUS MONITORING OF THE CREDIT STATUS OF ALL PRESENT CUSTOMERS
• PROVIDES DETAILED MANAGEMENT REPORTS
• FASTER PAYMENTS!
• NO DEBT CREATION - NO MONTHLY PAYMENTS OR BALLOON
• NO PERSONAL GUARANTEES
• NO GEOGRAPHICAL LIMITATIONS
• REDUCES INTERNAL ADMINISTRATION SO YOU CAN FOCUS ON GROWING YOUR BUSINESS - GREATER OPERATING EFFICIENCY
• REDUCES BAD DEBT
• AVOID REPAYMENT OF DEBT AT INOPPORTUNE TIME
• AVOID GIVING UP EQUITY OR CONTROL, AS IN "TRADITIONAL FINANCING"
• ABLE TO MEET INCREASING SALES DEMANDS
• OFF-BALANCE SHEET FINANCING
• PROTECT AND IMPROVE CREDIT RATING
• PROFESSIONAL COLLECTIONS
• GREATER OPERATING EFFICIENCY
• "TIME VALUE OF MONEY"
• ABLE TO TAKE ADVANTAGE OF VOLUME, TRADE AND OTHER SPUR-OF-THE MOMENT DISCOUNTS BY HAVING CASH AVAILABLE