Example of How AR Funding Can Make a Difference in Your Bottom Line

 

Issue: Middle market sized commercial electrical contractor was asked out by their bank due to large loss in prior year. This was a very complex deal due to the fact that they also were renegotiating commercial real estate with the same bank.

 

 

Solution: Since the payoff of the revolver would've squeezed most of client's availability, a negotiated settlement allowed for a rollover of over half of facility into the existing real estate loan. The Lender then provided a competitive fee structure and advance rate to fund the construction/progress billing A/R. We also negotiated a subordination agreement with the bank while the real estate restructure was occurring. The combination of the restructured real estate loan and Lender's A/R line has allowed the company to affordably increase cash flow, grow its business by working on its backlog and head back to profitability.

 

Win/Win Solution: Client felt relieved and thankful that the Lender was able to understand their complex funding issues, and offer the necessary flexibility to extend an aggressive funding program to handle their turnaround situation.

 

 

We find Lenders for deals such as the one above and for manufacturing, healtcare, engineering, consulting services, distributors, temporary staffing, BOL, and security. 

 

C. Ingraham, RTRP

Email: Taxeswilltravel @ aol dot com

 

 

Get Your Supplemental Educational Services Financed Within 24 Hours

SES Invoice Factoring

We have a Lender who will finance invoices for school districts throughout the country. The funding program provides funding based on your current accounts receivable, NOT YOUR CREDIT.  Your credit is not an issue.

If you do business with a higher learning institution or a school district anywhere in the country, you can trade your invoices in for immediate working capital.  Just complete a short six question form  and we'll locate a Lender immediately.   Fast and easy approval.

Need Working Capital, No Credit and No Where to Go?

Do you have Invoices? Or Not.

If you have Invoices, you have working capital.  Use your Invoices to gain access to immediate working capital without a credit check, financial statements or long drawn out procedures.

It’s called Accounts Receivable Finances or Factoring.  This is when a Lender trades the payment of your Invoices for actual working capital.  Lenders usually will direct deposit the money into your business checking account with a couple days after completing the two page application which ask who owes you and how much do they owe you and when do you expect your client to pay.

A rate is determine for the use of the working capital based on how much your total Invoices are, how long it will take your client to pay the Invoices and if your client is credit worthy.  (Usually between 1.5 and 3.5% of the total amount of the Invoices)  Rates are slightly higher for Construction Invoices and Health Care Invoices.   (Only commercial construction Invoices are acceptable)

If you need funding, like yesterday, complete the secure six question online short app and I will search out a Lender for you immediately.  All of our Lenders are qualified to work with Government, State, City, County and Corporate Invoices.  Click here for the Invoice Line of Credit

 

If you don't have Invoices, yet need to borrow money for your business check out Cash Advancement Loans for Business; loan decision based on your bank statements, not your credit. 

Business Funding - Factoring Your Way Out of Debt

Factoring is the transaction of turning your Invoices into working capital within days or hours after you Invoice a client.  It is one of the best ways to create working capital, without incurring debt.

It simple, easy and fairly safe.  In most cases the Lender takes the risk.  And they are experts at knowing who to factor and who not to touch. 

Online it appears that Lenders are a dime a dozen, however, this is not true.  There are a certain number of brokers who have their own corporation and refer business owners to Lenders.  Then there are those of us, who do not charge a fee for our services and we place you with a reputable Lender within hours, at no cost to you.

We know who can purchase your Invoices within 48 hours and and low rates.  We know which Lenders work well with Government Invoices as well as Corporate, State and Utility Invoices.  In order words, we know where the money is, how much it cost, and what you need to do to get funded, based on your industry, location and amount of Invoices, and most importantly, who your customer is.

Factoring or Accounts Receivable Financing is based on your customers credit, not yours.  And that is another reason that factoring is so popular amount a select few.  Usually the Lenders will say, "No Financials Required"  - this means no credit scores!  It's like a business loan, and your Invoices are held as collateral 

Those who have factored off and on over the years, understand that the fees that the Lender charges them for "money" is 100 per cent tax deductible.  So at the end of the year, the Department of Treasury helps to underwrite the cost of you creating working capital in order for your business to grow.

Often times, the companies who are factoring, have excellent credit and they keep it that way by paying cost immediately and getting discounts.  They understand that some times cash flow get a little tight, especially when the vendor's payment is late and payday is at the end of the week.

Accounts Receivable Financing helps to eliminate the problem, and allow the company to grow without feeling the growing pains. 

To learn more about how a Lender can reduce your cash flow concerns, visit: http://taxeswilltravel.com/Application.htm and complete the six question app/  We will locate you a suitable Lender.