Factoring
Unique Benefits
- Increase Cash Flow
- Faster growth
- Combat Seasonality
- Flexibility
- Debtor Evaluation
- Monitoring of Payments Dates
Qualification
- Business in operation for at least 2 years.
- Minimum annual revenue of $250K.
- Account receivables minimum of $150K.
- Account receivables rotation rate less than 90 days.
- Invoices over 90 days not eligible for funding.
- Seller's Gross Profit: 15%
- Seller's Net Profit: 5%
- Advance funding ranges from 70% to 95% of total invoice amount.
- Capital utilization permitted for up to 120 days.
- Buyer must be approved for credit insurance.
How It Works
- When factoring lender that elects to proceed will fund your initial advance based on the invoices you submit, the advance funding will vary from 70 to 85% of the factored approved invoice
Terms
- Factoring fees range between 0.69% - 4.59% (depending on the days sales outstanding. The average 2.25%)
- $100K up to $10MM Credit Facility
- Pre-qualification in 3 days after insurance approval
- Setup utilization funding in 3 to 5 weeks
- Term 12 months with annual renewal
- Applicant and must be credit insurable
- Loan to Value: 70% to 85%
- Setup Fee: 2%
- Annual Renewal Fee: 1%
Supplier Credit
Unique Benefits
- Negotiate better with suppliers
- Mitigate country risk
- Increase inventory rotation
- Attend new markets
- Increase sales
Qualification
- 2 Year Time in Business
- Minimum Annual Revenue: $5MM
- Buyer's Company's Assets: $4MM
- Buyer's Gross Profit: 15%
- Buyer's Net Profit: 5%
- 100% of the Supplier's Invoice
- Capital utilization allowed for up to 120 days
- Credit Insurance Approval
How It Works
- Accelerates cash flow by providing short-term funding for supplier's invoices or purchase orders to acquire new inventory, typically with repayment terms of less than 120 days. This agile financing method helps businesses optimize their working capital and meet their immediate financial needs.
Terms
- Fees: 1 to 2 % for a 30-day cycle
- Non-recourse factoring agreement: Supplier sells invoices without financial liability to lender
- No impact on existing credit lines
- Flexible fee payment options
- Up to 100% advance on invoice amounts
- Clear payment terms on invoices.
- Buyer's acceptance of payment terms
- Supplier's acknowledgment of invoice sale to lender
- Payment to Supplier upon completion of dispatch with shipping documents on hand