|
The Asset Based Lending Program
|
A flexible and customized approach to financing the
growth related challenges faced by entrepreneurs
|
The asset based lending program is designed to give
entrepreneurs access to the working capital that's tied up in
the following three asset classifications on their company's
balance sheet.
|
|
1. Accounts Receivable
2. Inventory
3. Equipment |
|
|
The Real Estate Lending Program
|
|
Our lending program is designed to provide borrowers with a fast
and resourceful financing alternative for situations that are
not served effectively by most traditional lenders. These
situations can range from time sensitive funding constraints, to
opportunistic, problem solving, or other circumstances requiring
a creative source of quick, short-term bridge capital,
including; |
|
| |
Unique Acquisitions
Refinancings
Foreclosures
Bankruptcy Resolutions
Partnership Disputes
Debt Restructuring
Turnaround Situations
Bank Workouts
Rehabilitation, Renovations
Owner Occupied
Vacant Building Financing
Mortgage Acquisitions
Sale-Leasebacks
Tax Lien, Judgment payoffs
Working Capital Needs
Discounted Debt Payoffs
Borrower Distress
Value Added Opportunities
|
|
|
|
|
|
Construction Factoring
|
One of the most common challenges a business in the construction field
faces is maintaining cash flow. Yet most businesses are subject to
progress payments, meaning they generally do not begin to receive
payments until 30, 60 or even 90 days into the project. The answer to
the inevitable cash crunch is factoring, which is quickly becoming the
alternative financing method of choice throughout the construction
industry.
|
|
What is Factoring? |
|
Factoring means selling your accounts receivable – whether they be
invoices, progress billings, requisitions. or AIA’s -- to a finance
company (known as a factor) for a discount. The factor actually
buys one or more of the business’s invoices, advancing cash to the
business– typically, 70%. Once the invoice or invoices are paid, the
factor will rebate the balance of the invoice after deducting its fee. |
|
|
|
Who Can Benefit from Factoring? |
|
Contractors, subcontractors, suppliers, and every other small to
medium-size construction-related business can benefit from factoring. |
|
|
|
How Can the "Quick Cash" Available through Factoring Be Used? |
|
Construction-related businesses can use the funds available to them
through factoring to pay their workers, make tax, workers’ comp, union
dues, and insurance payments…and buy the materials necessary to complete
their jobs. It can help a business that is facing a cash flow survive –
and it can help a business grow by providing the funds needed to go
after new jobs and new markets. The recent rebuilding following the
devastation of Hurricane Katrina is the perfect example. |
|
|
|
What Are the Advantages of Factoring? |
- Speed.
A business that finds itself
in a cash crunch may receive
its funding in as little as
24 hours.
- No Monthly
Payments. Since the
business does not actually
borrow any money, it makes
no monthly payments.
- Continuous Cash
Flow. Factoring
provides a business with
cash whenever it is needed.
- Relies on the
Financial Strength of
Customers.
Factoring provides funding
based on the financial
strength of a business’s
customers, not on the
business’s own financial
strength.
- Stimulating
Growth Opportunities.
Factoring offers businesses
the chance to grow by
providing them with access
to funds they can use to bid
on other jobs, get new
customers, go into new
markets, and increase their
scope.
- Accessible to
Unbankable Businesses.
Any business with
accounts receivable can
qualify for funding through
factoring.
|
|
|
|
|
|
|
WHEN YOU BORROW |
- It limits your
flexibility
- A lender will secure
assets equal to a minimum of
three times the amount of
the loan
- You can not secure
additional funds without
renegotiating the loan
- You must meet monthly
payment obligations
- There is a loan
liability on your balance
sheet
|
|
|
|
|
|
|
|
|
WHEN YOU FACTOR |
- You don’t borrow money
- You make no monthly
payments
- You receive funds in 24
hours or less
- You control your cash
flow by determining how much
you need
- You increase the
availability of immediate
cash which can enable you to
bid on more new jobs and
earn additional supplier
discounts.
|
|
|
|
|
|
|
|
|
