Funding Programs
Accounts Recievables Financing
If you need to receive your customers' payment sooner, Accounts Receivables (A/R) Financing liquidates monies that are tied up in your invoices. Once a program is established, converting invoices into cash can occur as quickly as 24-48 hours. A/R Financing is more appropriate than bank financing because:
This funding strategy offers a dependable, continuing source of cash without the necessity of making separate loan applications.
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. With factoring, periodic delays and negotiations are eliminated, allowing the business owner time to do what he or she does best ... run the business.
Benefits of Accounts Receivable Financing include:
Quick, easy access (both to capital and decision makers)
Stimulates cash flow
More flexibility and security to meet regular expenses
Cost savings
Reduces capital reserve requirements
Free credit screening and monitoring of customers
Reduces bad debt
Reduces impact of customers' financial difficulties
Frees you and your staff to pursue business growth activities
Purchase Order (PO) Funding
Purchase Orders are a formal agreement that a product is going to be bought at a specific price.
How Are Purchase Orders Created?
Purchase Orders are submitted by a buyer to the provider of a product. This is a promise to purchase goods rather than an invoice for goods already delivered. In some cases, cash is needed to allow the business to receive raw materials they need to fill the order and deliver the goods requested in the purchase order.
Who Can Benefit from the Funding of Purchase Orders?
The receiver of the purchase order can sell their respective income stream. The proceeds from this can then be used for equipment purchases, raw materials, or other business expansion and expenses.
Have you received purchase orders lately? Do you need money before you can fill the orders? Contact us and let us explain how we can help.