Mission Statement To help our clients with valuable tools to grow their businesses. Also, to help them achieve their financial goals by accelerating their growth and increasing their profit, which is our main target. We also help plainfiffs and businesses get the most out of their lawsuits BEFORE their cases settle. Being here to see how we can help them, combined with good customer service, and by PRE-QUALIFYING them by having them FIRST read the industry that they can use funding in BEFORE they contact us, will save us all time and money in the long run. By doing this FIRST, will give you some knowledge of what it is that we do.This way, everything will not be totally new to you anymore and you will become more educated at the same time about how we do our funding. ALSO, BY LETTING US KNOW UPFRONT, WHEN YOU CONTACT US (IF DOING ACCOUNTS RECEIVABLE FUNDING), IF YOU HAVE ANY LIENS ON RECEIVABLES, TAX LIENS, BANKRUPTCY, CRIMINAL RECORDS,OR JUDGEMENTS. WE WILL ALSO NEED TO KNOW THE AVERAGE MONTHLY VOLUME OF INVOICES PER MONTH THAT YOU DO.(WITH MEDICAL RECEIVABLES, IT WOULD BE NET COLLECTABLE PER MONTH OR YEAR), THIS IS VITAL INFORMATION THAT WE ASK FOR IN ADVANCE TO HELP US MAKE OUR DECISIONS IN THE FUNDING PROCESS. Letting us know this IN ADVANCE will be a HUGE TIME SAVER for everyone involved. We ask that you get familiar with your industry of funding FIRST and how it can help you. (I EMPHASIZE THIS!) By doing this FIRST, makes the chances of moving on with the funding process faster and should cause less delays and objections, which will help all of us be in a win win win situation! Everybody's time is VERY VALUABLE, and I VALUE AND RESPECT YOUR TIME as I believe you do mine by reading the information on your industry BEFORE you contact me. Not only that but it can also save time by not having to do a presentation. Hopefully the website can do that for me, or I can email one to you as well. So, by PRE-QUALIFYING yourself FIRST, helps me to know who to meet with and not to meet with. It also helps us to separate the serious people from the time wasters, who would like to be helped with funding and the people who are not sure yet. I believe that you can understand my point here about time wasters and people who are serious about receiving funding. I wish that I didn't have to address this , but we have had dishonest people in the past apply for funding, wasting everybody's time, just to find out that they lied to us about something important and didn't take us serious about the funding proceedure. We do check these things out just like a bank would, even though our protocol is different. So it is very important that you be honest with us upfront. As a business owner, I don't like anybody to waste my time and I don't want to waste anybody's precious time either. I believe in the "Time Value of Money" Which means that money is worth more today than it is tomorrow. I would rather receive $95,000 in 1-2 days instead of waiting 30 + days. I am here for you and want to help you to become more successful in your business. I am obligated and committed to do just that with serious people. I am serious about helping you to receive funding and I love to help people who want help. It is my sincere hope that I can be part of helping you grow a very profitable & successful business. If we can ever be of help or if you have any comments or questions, please don't hesitate to contact me. I also like to reward people for giving us referrals, even if they don't qualify or use our services. If we fund a referral that you give us, we will make sure that you are compensated. This way, even if you don't become a client, you can still be rewarded by giving us referrals who qualify! (Compensation will vary upon the industry and the size of the funding.) And don't forget to ask me about the "Underdog's Treats" whether you become a client or not, this could be an advantage to you as well. We can also do everything by not meeting in person, by email, fax, or phone, which in this day and age,some people prefer to do business this way, by TRUSTING in who they do business with, which I will give you my word that you can trust me, but I'll leave that up to your judgement. So we can meet in person or we don't have to , it's up to you. (Remember to read my Ethical Business Pledge) for that purpose to meet or not to meet in person. We also work nationwide here in the U.S., just in case you would like to refer someone outside of Texas to us. Thank you for reading this and I look forward to a mutual business relationship with you and helping you take control of your financial goals! |
Gold Medal Funding Group's Ethical Business Pledge
I pledge allegiance in my heart and soul, to the concepts of honesty, integrity, and quality in business. I recognize that the cornerstone of success is treating all stakeholders fairly with compassion, and with a commitment to service.Working from abundance, I recognize that even my competitors can become important allies. I will not tolerate crooked practices in my business from co-workers, direct or indirect reports, supervisors, managers, suppliers, underwriters, funding companies, or anyone else- and if I encounter such practices, I will refuse to go along with them and report them to appropriate authorities within and outside the company. I pledge to support the "triple bottom line" of environmental, social, and financial responsibility. And I pledge to participate in a serious effort to focus the business community on these principles by sharing this message with at least 100 other business leaders.
Hopefully this message got across to let you know that I'm an honest business operator who believes in good old fashioned business ethics and who's focus is on the way that I can help my clients out and not on deals only or trying to "con" people or being dishonest just to get them to do business with me. We all feel good when doing business with someone that we can TRUST, and that my friend is what I hope to receive from you. TRUST is priceless! Also, I reward those who send me referrals by cash or other resources (depending on your industry laws). And as an added service to you for free, I give you the "Underdog's Treats" whether you become a client or not, this can be a very valuable service from me to you.
your friend in business,
Mario "The Underdog"Gonzales
(Independent)Certified Business Finance Consultant
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Our Services
First of all, we thank you for taking time out to visit our new website. It's nothing fancy, but my goal is to be here for you and provide you with some very valuable information and benefits to you whether you become a client of mine or not. To me that is more important than some very impressive website that doesn't have any valuable informantion that can benefit you or providing you with some kind of scam, which, in the past I have fallen prey to.(Enough said, let's move on shall we?) Please read our mission stetement and our business ethical pledge here to the left before going any furter so you can see what makes us a different kind of company. By providing us with referrals that qualify, you could have a chance at being rewarded with free money! The only catch is that they have to qualify for the funding . Then, once we fund them, you can receive your cash reward. How many websites do you know do that? Not only that, but whatever you do please don't leave my website without asking me about "The Underdog's Treats". I will let you know whether you become a client or not what kind of advantages you have when contacting me whether you use my services or not. It will be to your advantage but you won't know until you ask me for it ok. This is an added service that I provide to you for free to let you know that I'm here for you whether or not you become a client of mine! We are committed to our clients to help them with alternative financing that they may not have known existed. When banks or other financial institutions may have turned down small to mid-sized businesses due to strict guidelines, or if your business is growing, we'd like to see how we can help you to receive the working capital that you need. Please pick an industry below that you would like funding for. Study it a little bit to get famialiar with some new education and then, when you are sure that you want to proceed with funding or if you have any questions,contact me by phone,email, or fax. Thank you for your time and, if we get to fund you, I Thank You in advance. Some of the services that we provide are...
Accounts Receivable Financing (Factoring) (Business to Business -For Distributors, Manufacturers, Wholesalers, Service, and Supplier Companies) -"Have you ever had to turn new business away because the funds just weren't there?" If your answer is "YES", then chances are, you could use these services. Turn your receivables into cash immediately! If you have a profitable business and your customers are paying you slow, and it's putting a financial burden on your business, we have a solution that will give your company CONSISTENT and PREDICTABLE INCOME. Receive your money within a FEW DAYS instead of waiting for WEEKS OR MONTHS once set up with Aaccounts Receivable Financing (factoring ). ( IMPORTANT: PLEASE READ THE NOTE! NOTE! NOTE! ON THE FACTORING-VS- PAGE FIRST.) We help the business to business, construction, trucking, staffing, medical/healthcare, and healthcare vendors just to name a few, who work with invoices or who work with claims,( in the healthcare industry, from a third party payer such as medicare, medicaid, private insurance, Blue Cross and Blue Shield ) with an alternative way of getting their money faster. This is is based on THEIR CUSTOMERS' CREDIT WORTHINESS AND NOT ON THEIR CREDIT RATING with accounts receivable financing. We also work in other industries that don't involve accounts receivable financing (factoring), such as pre-settlement lawsuit financing, venture capital, attorney funding, credit card receivables financing,(which is a little bit different than regular factoring), and Asset Based Lending. Below are some of the services that we provide.... ACCOUNTS RECEIVABLE FINANCING=FACTORING-EVEN THOUGH THERE ARE VARIOUS INDUSTRIES THAT WE FUND 1)(REGULAR COMMERCIAL FACTORING, WHICH IS BUSINESS TO BUSINESS FOR (DISTRIBUTORS. MANUFACTURERS, WHOLESALERS, SERVICE, AND SUPPLIERS) 2)CONSTRUCTION FACTORING (COMMERCIAL & RESIDENTIAL) 3) MEDICAL/HEALTHCARE FACTORING, AND 4)MEDICAL/HEALTHCARE VENDOR FACTORING (COMPANIES THAT SELL THEIR PRODUCT OR SERVICES TOTHE MEDICAL/HEALTHCARE INDUSTRY), Trucking, and Staffing Companies are also included in the mix. One way that you can look at factoring is the "Time Value of Money", which means that money is worth more today than it is tomorrow. (Example) Would you rather receive $100,000 in 30 + days, or $95,000 in a day or two (after being set-up) with us? And do this by not adding extra debt to your balance sheet. That is just one of the benefits of factoring. The factoring services are pretty basic as to being similar in the way that this kind of financing benefits and helps all of these industries grow their businesses, enhances their revenue, reduces debt, and increases the efficiency of running their businesses. The puchasing of invoices is very similar and the funding companies usually advance approximately anywhere from 60% to 90% of the invoice face value, (claims for the Medical/Healthcare Industry). The funding companies then usually hold on to the remaining amount of the invoice until it is paid back in full by the customer, then the factoring company pays back the remaining of the 60% to 90% of the invoice minus the factoring fees. That's pretty much the basics of how it works. The break-down is that it's pre-funding invoices at a discount of the facevalue. Every business is different and every industry is different, so there will never be an exact two same kind of transactions, unless you decide to factor the same customer's invoices with the same amount month after month. Accounts Receivable Financing happens without creating extra debt! This is NOT A LOAN where you pay " x" amout every month. This is a cash advance for the invoice or turing paper into money. What factoring is... It is the sale of your accounts receivabe to an underwriter at a discount off the face value in return for immediate cash. Rather than waiting 30,60, or 90 days to get paid, you can get paid in a few days once the business is set up and the invoices or claims (for the medical/healthcare sector) are issued. Accounts Receivable Financing can also be looked at as a "Prompt Payment Discount". Meaning that if you had a customer who was to pay you in two days with cash, you would give him a discount if he was going to pay you that fast. But instead of giving your customer the discount, you would pay this to the underwriter or funding company. It is VERY IMPORTANT that youunderstand this when an underwriter gives you their fee amount in case any fee objections arise, this will help you understand the price of the fee from a different angle, a more positive angle. In a Dunn & Bradsheet study, the average Business Owner said that they would give their customer a 10% discount if they paid cash for services rendered if it was paid in a couple of days instead of waiting for 30 days.WHY FACTORING IS PROFITABLE! Perhaps the most important consideration the business owner must be familiar with is the impact each financing vehicle has on their" bottom line". Debt is a liability and reduces the net worth of the company until the debt is repaid. The interest expense also reduces the net worth of the company. For these reasons, and from a business point of view, debt for working capital purposes should be avoided if at all possible. Factoring also impacts the balance sheet in a positive manner for two reasons. 1) Factoring becomes an ASSET, increasing the net worth of the company by reducing the working capital requirements to almost nothing. 2) Because of the associated discount fee reducing the pre-tax profit. Significant tax relief INCREASES THE NET WORTH OF THE COMPANY. FACTORING IS THE ONLY financingvehicle that INCREASES THE NET WORTH & EQUITY position of a business!! That is why fortune 500 companies have been using this very valuable tool to take them where they need to go. If the business owner needs an influx of capital for any reason, a choice has to be made-DEBT or FACTORING. It INCREASES THE EQUITY POSITION OF A BUSINESS when DEBT DOES NOT. Which is better? AN IMPROVED BOTTOM LINE IS ALWAYS MORE SATISFACTORY! Quite often the business has no real choice because many banks offer personal or traditional loan products ONLY to their customers with perfect credit or those businesses that already have the working capital that they need at their disposal. IT IS ALWAYS BEST TO KNOW THE IMPACT ON THE BOTTOM LINE BEFORE APPLYING FOR FINANCING. You can use factoring for expanding, meeting payroll, paying taxes, new equipment, taking advantage of early payment discounts to vendors, which can even make the factoring fees almost free!. So this is a VERY POWERFUL TOOL that you can use to ENHANCE REVENUE, DECREASE EXPENSES/LIABILITIES, AND MAKE YOUR BUSINESS RUN MORE EFFICIENTLY. ALSO A GREAT WAY TO BE MORE COMPETITIVE in your industry! We can do this here in the Dallas area in person or we can do everything via email, phone, and fax. which could probably be faster. In this day and age we live in that is how most people want to do business, in a faster way with honest companies. We also do factoring nationwide and our other services also with the exception of a few new things coming out.
A sample of how factoring(Accounts Receivable Financing) for Commercial clients (Distributors,Manufacturers, Service, & Suppliers) can work:-Tools, Inc. receives an order form Bob's Hardware for 10 cases of hammers. Jan. 1-Tools,Inc. has produced the hammers and ships them to Bob's. Tools, Inc. issues a $5,000 invoice to Bob's. The invoice states that Bob's has 30 days to pay for the hammers. Jan. 2-Tools, Inc. receives an order from Stan's Hardware for 20 cases of hammers. Since Tools, Inc. does not have enough cash to produce the hammers, they send the invoice from Bob's Hardware and sells it to an underwriter. Jan.4-The underwriter advances Tools,Inc. $4,000 on the invoice. The underwriter keeps $1,000 as a reserve. Tools, Inc. now has enough funds to produce the order for Stan's Hardware. Feb.2-Bob's Hardware sends payment for the Jan.1 invoice to the underwriter. Feb. 3- The underwriter rebates Tools,Inc. the $1,000 reserve, less a $250 fee. Therefore, a total of $750 is rebated to Tools, Inc. ($5,000 invoice - $4,000 advance to Tools, Inc., $1,000 held as reserve, $250 for underwriters fee, $750 rebated to Tools Inc). (The chart below illustrates the same concept in mathematical terms). This is for educational purposes only and does not guarantee the same fees that apply here. It depends on different variables, but the faster your good paying customers pay back, the less the fees should be.) | $5,000 | Invoice | | -4,000 | Advanced to Tools, Inc. | | $1000 | Held as a reserve | | -250 | Factor or Underwriter's Fee | | $750 | Rebated to Tools, Inc. (total funds to client + $4,750) |
(This is pretty much the basic way that factoring works, even thought there are various industries that we are involved in funding). After initial funding has been set up, the business cycle demonstrated above is repeated over and over as the client continues to factor. In this example, once Tools, Inc. has supplied Stan's Hardware with 20 cases of hammers, Tools, Inc. will be in the same position it was in waiting for Bob's invoice to be paid. If Tools,Inc. receives another order before Stan's invoice is paid, it may not have the capital necessary to fulfill that order. For many businesses that receive orders from customers on a regular basis, this situation creates a serious "money gap" and leaves them short of the funds necessary to grow their business. Factoring essentially fills the money gap between the time a company makes a sale and the time the customer pays. After delivering a product or service to a customer, businesses often can't afford to wait to get paid. Sometimes they need money immediately to meet payroll expenses, rent, or other operating expenses. Other times they need money to buy supplies needed to fill incoming orders. Factoring gives those businesses access to cash within days instead of months. This also gives them the power to receive "predictable" income. These unerwriters for the "Business to Business" Factoring are usually pretty flexible as to how many invoices can be factored, meaning that companies can factor one invoice or all of their invoices, when or how often they want to factor is also up to them usually, which is very good for them to be in control of their business financing. It is always best to go with your best paying cusomers invoices though, because they have a better credit worthiness. Some required documents might include.. Articles of Incorporation, Balance Sheet, Income Statement, and AR Reports (Aging Report), other documents may apply. Other fees may or may not apply. Invoice minimum dollar amount may or not be $1,000 minimum and maximum invoice amount to be factored may be unlimited. Personal guarantees may or may not apply. Also, if you have any open tax liens or judgements this might affect the desicion in a negative way, meaning that they will probably turn you down for factoring. But depending on the situation, sometimes they can work around these problems. We also work with start-up companies who have some invoices to work with. Another example of how Factoring can work for you...Metro Printing provides printing services for a large telephone utility. Each month they have the same problem---the telephone company takes about 45 days to pay its bills. Metro has to front the production costs in order to fulfill the utility's orders. This limits the amount of cash Metro has on hand to fill other orders. Then, someone like myself approaches the owner of Metro Printing. I explain that he or she can get them cash, less a reasonable discount, for the invoices Metro sends to the telephone company. By factoring its invoices, Metro can pay labor costs and continue to buy paper, ink, and equipment needed for other orders. The owner of Metro Printing eagerly agrees to persue the transaction. I will collect the documentation necessary then I'll contact the factoring company with information about the transaction. The factor researches the creditworthiness of Metro's client (phone company). When everything checks out, the factor sets up an account for Metro. The factoring company offers to purchase the most recent $100,000 invoice for a 5 percent discount. Within 48 hours, the factor sends Metro Printing a cash advance of $75,000. The factor keeps $25,000 as a reserve until the phone company pays and for the factor fee. Then, the factor waits for the phone company to pay the $100,000 invoice. As soon as the phone company pays, the factor wires Metro the reserve amount of $20,000. (The factoring company keeps the $5,000 difference as its fee.) If Metro continues to factor one $100,000 invoice from the phone company each month, they'll have a predictable income of $95,000 each month just from this one invoice alone, they can sell as many invoices as they want to have the cash needed to grow, pay taxes on time, make payroll, take advantage of early payment discounts from suppliers, etc. for asl long as they want to. Not bad for an investment of $5,000 to receive $95,000 cash on hand instead of wainting 30 + days to get paid, and this doesn't add any debt to the balance sheet either because the money is already tied up in their accounts receivable. Money is worth more today than in the future. You can think of it like this... Would you rather wait to get paid $100,000 in 30-45 days or more, or receive $95,000 in a few days, without adding debt to your balance sheet? When the demand of new orders is on the line, you can use this very powerful tool to ENERGIZE YOUR BUSINESS! (Example of this in mathematical terms) This is for educational purposes only and does not guarantee the same fees that apply here. It depends on different variables, but the faster your good paying customers pay back, the less the fees should be.) | Invoice amount | $100,000 | | Advance to Metro Printing | $75,000 | | Reserve | $25,000 | | Factoring Fee | $5,000 | | Back to Metro (When phone company pays $100,000 for invoice ) | $20,000 | | Total paid to Metro | $95,000 |
Medical Receivables Financing (Factoring): This is kind of like the factoring listed above except the payer is a third party payer, such as an HMO, insurance company, Blue Cross Blue Shield, Medicaid, or Medicare. The protocol and parameters are different, and it takes a bit longer to get set up because the medical/healthcare industry is more complex. What factoring is not... A LOAN. Factoring is the sale of your medical claims for delivered services. OFFERED BY BANKS. Factoring is not an asset-based loan, nor is it a debt facility similar to those offered by banks. Factoring provides working capital without adding debt to your balance sheet. There is no predetermined maximum limit. This working capital arrangement is not limited in amount as many bank products are nor is it subject to banking regulations. Factoring involves no collateral other than your accounts receivable, and unlike bank lines that can tie up all of your assets, factoring encumbers only your third party medical claims.The funding companies can also factor claim by claim , they do an audit evaluation and verification of claims also to help and see if you may be owed money back on any claims in the past, which has happened before which can really be very helpful when money is due you in case of a mistake on a claim amount to be paid and they might have entered the wrong amount due by mistake (the insurance companies).This is also a very powerful tool for the Healthcare Industry to consider. When your payments slow down and become inconsistent, the solution to these challenges will not be found with traditional asset based lenders or investors. Traditional lenders have speicifically identified the Healthcare/Medical Industry as something they prefer to avoid. Available capital through many of the alternative sources has also dwindled, they are simply not geared to meet the specific requirements of the HC Industry. As a result, there are few choices to acquire capital. Bankers consider the industry "risky" because although assets may exist, there is not alot of collateral. The solution is going to a funding source who rely on the receivables and don't insist on securing the other forms of collateral. With the surge of many new providers not in business long enough to attract traditional lenders, everything that makes these providers unatractive to the traditional lending market makes them a potential client to an acounts receivalbe funding company, even when a provider is facing bankruptcy. Medical funding companies that provide accounts receivable financing are always prepared to step in and provide the necessary capital in a similar fashion as commercial factoring. We purchase their invoices to 3rd party payers such as.. Insurance companies, PPOs, HMOs, Medicare, Medicaid, Bue Cross and Bue Shield, etc. Some types of deals that we fund are...General practitioners, surgeons, anesthesiologists,optometrists podiatrists, urologists, radiologists, orthopedics, associated medical groups, acute care hospitals, outpatient clinics, day surgery centers, rehab centers, substance abuse centers, medical staffing firms, dialysis facilities, specialty hospitals, MRI centers, DME suppliers just to name a few.Some of the info that a funding company might ask for are.. payor mix (what % is owed by payor source, for ex. Insurance, PPO, ETC.) Transaction size in net monthly collections,which is what actually gets collected, not billed, this is usually a minimum of about $50,000 net collectable/month and usually no maximum limit to claims factored. What is the average claim amount? Also Profit and Loss (P&L) or Income Statement, Balance Sheet, and Aging Report (AR).Also, you might note that the Medical underwriters are not looking for clients who want to just factor claims for 1-2 months, they are looking for a mutual business relationship for at least 1 year or longer. Personal guarantees probably don't apply. As the Healthcare Industry continues to grow exponentially,with continued burdens becoming increasingly difficult to overcome, let this be a powerful tool you can use to have cash faster! Example of a typical Medical Receivables transaction: Downtown Pediatric Clinic is expanding rapidly. Its net collectable receivables are approximately $160,000 per month. The reimbursement cycle is typically 60 days. Through a factoring arrangement, Downtown Pediatric receives a cash advance of $80,000 per month (50% of $160,000). Advances are paid on a weekly basis. All bills paid to the clinic from insurance companies, Medicare, and Medicaid are paid directly to a lock box in the clinic's name. As the funding company receives payment on a single invoice or invoices, it reimburses the clinic any money received after the initial advance and factoring fees and origination fees have been recovered. If 100% of the bills owed to the clinic were paid, the reimbursement would equal $80,000 less an $8,000 factoring fee and $5,000 origination fee. (Example in mathematical terms) This is for educationa purposes only and does not guarantee the same fees that apply here. It depends on different variables, but the faster the net collectable claims are paid back, the less the fees should be.) | Clinic's net receivables | $160,000 | | Funding companiy's advances | -80,000 | | Upon payment funding co. reimburses | $80,000 | | Less factoring fee (5% x $160,000 ($8,000) + $5,000 | -13,000 | | $67,000 | | | | Initial funding | $80,000 | | Reimbursement | +$67,000 | | Total funds to client | $147,000 |
(The second month the clinic factors, it will not have to pay the $5,000 origination fee. Therefore, its total reimbursement will be $152,000). A Medical Receivables Success Story: Durable Medical Equipment Co. (DME) is a dealer for durable medical equipment, such as wheelchairs and hospital beds. They sell their products to consumers, but are reimbursed by insurance companies and government agencies. DME began factoring $360,000 net receivables per month. The funding company advanced $180,000 per month to DME. With the cash flow provided through factoring, DME was able to take advantage of significant early payment discounts offered by its manufacturers. These discounts were sometimes as high as 25%! DME kept its prices the same, thereby increasing its profit margin. In addition, DME was able to increase the amount of inventory it requested in its bids to manufacturers. The savings allowed DME to increase its sales. As a result, its net receivables rose from $360,000 to $600,000 a month. In time, DME was able to open two additinal facilities. Today, each facility factors $2 million in net receivables every month. Clearly, 4-5 percent factoring were minimal, considering that DME was able to purchase inventory at a 25% discount and increase its sales exponentially! Let factoring ENERGIZE YOUR BUSINESS! Let us help you have the financial freedom that you deserve so you can focus on your business growth and have PREDICTABLE INCOME! Construction Receivables Financing (Factoring): This is similar to the business to business factoring but it is different and deals with funding sub-contractors and suppliers. Banks are now considering the construction industry to be a "risky" industry to work with which doesn't leave contractors with many options to consider for working capital. They are not interested in extending loans to contractors. Also, banks are not comfortable with progress payments and, as a result, they are reluctant to extend loans to companies in the construction business. It is all too familiar for sub-contractors to be waiting for the GC's to pay them for services rendered. Sub-Contractors are constantly needing to pay for supplies, bills, taxes and having to make payroll every week which can put a strain on revenue when the cash just isn't there when they need it. The simple fact is that sub-contractors who are working for General Contractors often need money in short order. Many don't have bank lines, yet they require the financial wherewithal to keep on going. They have tremendous costs, ranging from payroll taxes, to materials, to union benefits. The opportunity to obtain capital in a hurry is therefore and extremely attractive option--which is why sub-contractors and construction suppliers should consider factoring as a financial option. Factoring's basic structure makes it an ideal choice for sub-contractors and suppliers. Basically, factoring companies provide a business with quick cash-often in 1-2 days, once set up--by buying that business's Accounts Receivable. Because factors are not actually lending money, no monthly payments are required. The client company can determine exactly how much cash it needs at any given time. And that company's credit worthiness is not an issue--only the creditworthiness of the companies that owe it money. An example of how the process works: A sub-contractor or supplier who approaches us and learned that he would be able to receive an advance equivalent to 70% of a specific single invoice totaling $100,000-or $70,000 in cash that would be directly wired to his bank account. The fee to factor that $100,000 invoice for one month could be $5,000. He would receive the balance of the money, equal to $30,000 minus the $5,000 fee, so $25,000, upon receipt of the funds due toward payment of the invoice. The total back to the sub-contractor would be $95,000. For sub-contractors and suppliers, factoring can provide the means to get through a period of cash flow problems--or to take advantage of an expected opportunity to expand. This can be done without adding extra debt, since the accounts receivable is already the cash available for this type of funding. Instead of waiting 30-45 days or more, once you are set up with us, we can shrink tthat waiting period all the way down to 1-2 business days! LET US HELP YOU HAVE PREDICTABLE INCOME! Some required documents may be..Articles of Incorporation, Aging Report, Income Statement, & Balance Sheet. Other documents may apply. Minimum dollar amount to be factored may be around $1,000/month and maximum up to maybe $2 million+/month. A $200 fee may apply only for the first invoice transaction, and then after that, no other fees except for the discount per invoice of doing business with every transaction. Once you start factoring your invoices, it will be almost an automatic ATM machine at your disposal, with NO ADDED DEBT on your balance sheet and this will INCREASE YOUR REVENUE, DECREASE YOUR EXPENSES, AND MAKE YOUR BUSINESS RUN MORE EFFECIENTLY!! We also work with START-UP COMPANIES as long as they have an invoice or invoices to work with. Also, the work has to be completed and we don't work with too many residential projects unless they are getting paid by a contracting company instead of a home owner or individual payor.Personal guarantees may or may not apply. You might be turned down for financing if you have any open tax liens or judgements. ( Below is a mathematical explanation of the above scenario). This is for educational purposes only and does not guaratee the same fees that apply here. It depends on different variables, but the faster the payor (GC, Contractor, Etc.) pays back, the less the fees should be.)
| Invoice amount | $100,000 | | Advance for invoice | $70,000 | | Held as a reserve | $30,000 | | Factoring fee | $5,000 | | Reserve paid back minus fee | $25,000 | | Total back to contractor (client) | $95,000 |
Medical Billing & Collection Services: The benefits of Outsourcing Your Medical Billing & Collections. How we can help you. Poor in-house billing proceedures can result in lengthy delays--or even lost revenue-- due to mishandlled billings (wong ID# typed in, wrong diagnostic code used, etc.) In addition, third-party payors sometimes make mistakes, and with no checks- and- balances systems in place, fees are lost. To eliminate the all-too-common billing and collection problems that health care providers like you experience, we have established a comprehensive new service that can handle your entire billing and collections function. Some of the services are...1) Invoicing third-party payors, self-insured companies, and individuals who have no insurance or are required to co-pay a portion of their bills. 2) Providing you with "real time" read-and-print access to your patients' accounts, keeping you instantly and continually abreast of the status of your receivables and revenues. 3 ) Checking to ensure that your patients are covered by their insurance policies for the medical services which you will be providing. 4) Managing the collection of your accounts receivable. This can include resolving disputes over insurance claims, handling patient inquiries regarding bills, and generally "chasing down" unpaid invoices. 5) Financial reporting and analysis, including producing summary reports of payor mix and collection performance. And 6) Advising on fee setting, on payor mix changes and trends, and on whether a specific proceedure is reimbursable by a particular payor. Some FYI... The days of financial lay-ups in the health care industry are over. Almost every sector of the healthcare industry has been going through major financial overhauls. Prompted by changes in legislation, and methods of reimbursements, every segment in the chain has been affected, from the sole practioner, to the large hospitals. Aditionally, the impact of managed care and rate capitation has created an upheaval in the profit margins and financial benefits of virtually every component of the health care system today. As these shifts occur, the old standard methods of operating are obsolete and the genesis of new methods are born. A recent report noted that an estimated 25% of the nation's tab for health care is not spent on care at all, but rather on shifting paperwork, processing claims, and other administrative activities. One recent study found that even in efficient practices, it is not uncommon for every two physicians to have a staff person handling , scheduling, verifying eligibility, billing, managing receivables, and settling claims. Cost control efforts add to the administrative complexities facing physician practices. Regardless of how efficient a provider's receivable management department is, there is often a need for additional funding to improve cash flow or capitalize on new business opportunities. In addition to offering a consistent cash flow, my underwriters assume all the responsibilities of the billing and collections for the practice ensuring financial success. We know that keeping up with the growing complexities of medical reimbursement is absolutely critical for timely, maximum payment for medical services rendered. As an experienced billing service, we are a vital link between PROVIDING health care services and RECEIVING payment for those services. We are committed to providing billing services, for practices of all sizes, lowering office overhead and reducing the number of claims rejected by insurers. Avoid delayed, rejected, or reduced payment of claims due to incomplete or improperly coded claims, and let us handle the day-to-day worries of medical billing and collections and let the provider do what he does best...focus on the practice of medicine. There are many advantages of using a professional billing service. The advanced training, education and the experience of the billing service professionals, updated information regarding the ever changing medical industry billing requirements, sophisticated billing software enabling electronic transmission of claims, resulting in faster reimbursements, and reduction in office overhead in both staff and computer equipment. Receipt of updated reports on the status of accounts, hands on training and ongoing (dial-up) accessibility to your computerized information will ease your transition and insure rapid and competent billing and collections of your accounts. The approximate minimum my underwriters are looking for is $25,000/month Net Collectable. And documents that may be required are Articles of Incorporation, Balance sheet, Aging Report, and Income Statement. Also fees may apply and maybe other documents. Healthcare Vendor Receivables Financing(Factoring) : (Please refer to the Accounts Receivable Financing section above FIRST to see how this type of funding works) If you're waiting to be paid by Hospitals or Healthcare Providers, then this is the factoring you can use. This works pretty much the same as commercial factoring except the services are for those companies that sell their services to the healthcare industry or medical industry.Let us help you with a PREDICTABLE INCOME as well by purchasing of your accounts receivable at a discount without creating any added debts. The Healthcare Industry can be slow at paying their customers and we are here to help you as well. Let us help you receive your money in a faster way! For Healthcare vendors and suppliers, conventional borrowing increases busniness expenses because it creates debt that must be paid back and normally requires additional collateral that many Healthcare vendors don't have. Some companies, especially smaller ones, are turned down by banks because of tight borrowing regulations and restrictions. They can use factoring for growth to avoid having to wait months to get paid. Instead of waiting 30, 60 or 90 days to get paid from hospitals, and Healthcare Institutions, suppliers can now receive cash within 24 hours through the sale of their accounts receivable once you provide them with invoices for work and goods that have been completed , accepted ,and verifiied with your customer your can turn your receivables into cash immediately. Some of the vendors/suppliers that we help get funded are...Temporary nurse staffing agencies, medical transcrioptionist services, medical coding services, cafeteria services, medical suppliers, medical software companies janitorial companies, cooking companies, and more. Some documents that might apply are..Aging Report, Articles of Incorporation, Balance Sheet, & Income Statement. Others may apply. Invoice minimum to factor will probably be no minimum and maximum will probably be somewhere around $1 million/month. Personal guarantees may or may not apply and open tax liens or judgements may be a problem with this type of financing.
Venture Capital Funding:-This is NOT DEBT FUNDING, it is EQUITY FUNDING. This is when a venture capitalist is looking to invest in a new start-up business who has the potential to become a very successful business candidate in a certain marketplace. The venture capitalist is willing to put in some serious money in order to become a business partner. The minimum is usually somewhere in the neighborhood of $3-5 million. Some of the parameters that they are looking for are...The market opportunity, marketing sales strategy, competition, entrepreneurial experience, management team, founder commitment, directors and advisor's, financial projections, investment value, accomplishments, corporate structure and ownership, and intellectual property to name some of them. Pre-Settlement Lawsuit Financing: This is when we help out a plaintiff who is in a pending lawsuit to receive a cash advance before the settlement happens.This way the client gets the most out of their case. It doesn't matter if they have bad credit. The case is the collateral. Also, if the plaintiff qualifies for the advance, they only have to pay when the case is settled, and ONLY IF THEY WIN! So if they lose the case, but still qualified for the cash advance, they end up keeping some FREE MONEY! This is what I mean by getting the most out of a case. Some cases that we fund are...Accident, slip and fall, medical malpractice, soft tissue, workers comp, wrongful death, wrongful termination, wrongful imprisonment, sexual harassment, discrimination, divorce, and commercial, to name a few,there are a lot more cases that we can fund. . REMEMBER! IF YOU REFER SOMEONE TO ME AND WE GET TO FUND THEM YOU WILL BE REWARDED $50 BY HARDLY DOING ANYTHING AND IF YOU REFER ANY COMMERCIAL CASES OR ATTORNEY FIRMS TO ME THAT RECEIVE FUNDING, THE PAYOUT WOULD BE SUBSTATIALLY MORE THAN $50! Lawfirm Funding and Commercial Funding: If you are looking for ways to minimize risk and maximize your profits perhaps we can help. We take the risk, you reap the rewards. Law firms also need money to run and grow. We offer attorneys a limited recourse line of credit based on the estimated fee value of all the cases or even on a single case. Our underwriters look at each law firm line of credit on an individual basis, creating a program that works for everybody. Some benefits are...1) No personal guarantee required (except for fraud of malfeasance, an example of this is if the law firm gets payments on settled cases that are covered by this line but do not tell the funding source about it. Another example is if they decide not to show up for court dates causing them to lose the case.) 2) The payment is coming from the settled cases, 3)There are no monthly payments being made, 4) This line has a 3 year term on it. This means the law firm has plenty of time to use the money to win the cases its working on. 5) They can also pay it off at any time without penalty (there is a 6 month minimum fee) Fee structures are approximately anywhere from paying back 1 dollar for every dollar or paying back $1.80 plus every dollar approximately after 3 years. Why should attorneys use LFF? THE MONEY FROM THE BANK HAS TO BE PAID BACK ON A MONTHLY BASIS affecting their cash flow. WITH OUR PROGRAM THERE ARE NO PAYMENTS AND NO WORRIES FOR 3 YEARS! The bank doesn't necessarily increase their line as the practice grows. As the firm takes on more and bigger cases, more money can be available. ALSO, UNLIKE A BANK LOAN, THEY WILL NOT HAVE TO PAY IT BACK IF THEY LOSE THE CASE OR CASES. IT IS ONLY TIED TO THE CASES AND NOT TO THEIR PERSONAL ASSETS. Some more benefits are...1) No fees from the cases, 2) No repayments, 3) No negative marks on their credit. We advance noney to attorneys and their clients before their cases settle. Here's how it works: We can offer an attorney a limited recourse line of credit based on the estimated fee value of all the cases, or for that matter, on a single case. Since we are looking to advance $100,000 and more, we want to see the attorney's fees valued at approximately 5 times that amount or greater, which in this example, would be $500,000 for the advance of $100,000 . This is a general rule of thumb. Our underwirter looks at each law firm line of credit on an individual basis, creating a program that works for everybody. We also work with cases on appeal, various commercial cases such as patent enfringement cases. This case cost financing creates no out-of-pocket cost to the law firm and no obligation on the part of either party (IF THE CASE IS LOST) There is a non-recourse lien placed on the case. This acts almost like an insurance policy. Credit Card Receivable Financing (Funding): (FOR VARIOUS MERCHANTS SUCH AS RESTAURANTS, RETAILERS, ETC., WHO ACCEPT VISA/MC AS A FORM OF PAYMENT FOR SERVICES) A COUPLE OF THINGS YOU SHOULD KNOW UPFRONT ABOUT CREDIT CARD PROCESSORS AND TERMINALS.YOU MUST SWITCH TO ONE OF OUR APPROVED PROCESSORS TO RECEIVE FUNDING. Our approved crediit card service providers will meet or beat your current credit card processing cost structure. THE BOTTOM LINE IS THAT YOU'RE NOT GOING TO LOSE MONEY FOR HAVING TO SWITCH. Some restaurants, especially large franchises, have a special low-rate deal from their credit card service provider due to their collectively large volume of transactions, we strive to meet or beat these rates, BUT IT CANNOT BE GUARANTEED. And about credit card terminals, usually you do not have to get a new one. All you have to do is re-program your terminal which takes only about 10-15 minutes and it can be done over the phone. Our approved credit card service provider will call you to give you step-by-step instructions. More than 90% of small businesses are unable to get traditional financing-and 8 out of 10 small businesses fail during the first year. Yet, thanks to credit card receivables, financing a small business can receive an average of $50,000 in just days. To summarize credit card receivables... it is advancing funds to a merchant or other small business based on the past six months of credit card receivables. ONCE A COMPANY HAS APPROVED A BUSINESS' APPLICATION, THE DEAL CAN BE FINANCED WITHIN 7 to 10 days. The credit card receivables financing company will usually fast-forward the monetary wire transfer(i.e.70% to 150% of the merchants average monthly Visa/Mastercard volume.) The loan for the merchant will be paid back within a six month period and the merchant will generally renew the loan. This type of financing offers merchants two advantages, the ease of the deal and the quick turnaround time. But another benefit is the low financing cost. A typical cost of the advance is approximately $1,059 for every $10,000 advance over the standard term. In other words, the payback ratio is 1.1059, meaning the business owner pays back $1.1059. In addition, the flexible payments make this arrangent ideal for small business owners. The payment is a percentage of Visa and Mastercard sales and not a fixed amount. If the business is doing well, the loan is paid back more quickly, minimizing interest costs. The other side of the coin is that if sales are slow, the owner isn't under pressure to make the fixed payment amount. The actual interest costs can vary depending on the daily sales figures. Typical daily percentage is about 13-20%. Daily payment percentage is determined as a function of the loan amount, average monthly sales and the term. Since CCRF is a loan being amortized by irregular daily payments, no one can forecast the exact amount of the interest to be paid over the life of the loan. We can only project what the interest amount would be based on certain assumptions. As a rule of thumb, the shorter the term, the lower the interest amount would be.There are 2 CCRF products... Regular and Lower rate. Regular rate program: Typically costs around $700-$1,100 per $10,000 borrowed over 6 months. Lower rate program: Typically costs around $600 per $10,000 borrowed over 6 months. The lower is offered as of now only in these states.. MI, MO, NY, OH, AND OR (FOR LOANS OVER $50,000) PA, AND RI. The following assumptions are used for projecting the interest amount...The total monthly visa/mc sales amount will be exactly the same as the average monthly balance for the life of the loan, daily visa/mc sales amount is exactly the same adding up to the total monthly sales amount. Business is open 7 days a week. Daily payments are made from Monday through Friday. (We no longer accept any new applications from businesses located in the following states... CT, FL, OR AND TX FOR LOANS UNDER $50,000.) Payment Proceedure: The funding company is paid back automatically. They initiate an Automatic Clearing House (ACH) debit to the merchant's business checking account based on the amount of visa/mc sales and agreed upon daily payment percentage. It means that the 100% of the merchant's settlement is deposited into the merchant's bank account, and the funding company debits the merchant's account for the daily payment (usually on the same day as the settlement deposit) THEREFORE IT IS VERY IMPORTANT THAT THE MERCHANT LEAVES ENOUGH BALANCE IN THE BANK ACCOUNT TO COVER THE FUNDING COMPANY'S PAYMENT. The funding company charges the borrower for the same amount that they get charged by its bank for bounced payment. Currently it is $10 per NSF returns. EXAMPLE: Here is an illustration of the typical payment transaction flow. (assuming 48 hour settlement for credit batches) Let's assume the merchant had $1,000 vs/mc sales on Monday and the daily percentage is 15%. ON MONDAY merchant batches out the credit card terminals. ON TUESDAY, ISO/prosessor sends the daily report to the funding company for the Monday's batch. The funding company issues ACH debits to the merchants bank account for $150 ($1,000x15%) ON WEDNESDAY, settlement of the $1,000 is deposited to the merchant's bank account. The funding company's ACH debit payment of $150 reaches the merchants bank account. Net effect to the bank account balance is an increase of $850 ($1,000-$150) ELIGIBILITY:To apply for CCRF, the business must be a Corporation, LLC, or LLP (not the same as limited partnership) formed and operating in the USA. The borrower must have been in business for a minimum of 12 months and have a minimum of 6 month credit card processing history to meet our monthly average sales calculation requirements. Owners must be either a USA citizen or a permanent resident alien with a social security number. If the owner is not a U.S. citizen, we must see the copy of the owner's permanent resident alien card (a.k.a. Green card ) or Visa (in the passport) & I-94 page on his/her passport. WE CANNOT MAKE "PERSONAL LOANS OR BUSINESS LOANS INTENDED FOR NON-BUSINESS USE" UNDER ANY CIRCUMSTANCES! LOAN RE-UPS:-Over 90% of customers re-up their loans. Merchants can request a re-up when the loan balance is down to about 20% of the original loan. Re-up of the loan is almost always approved as long as the previous loan wasn't defaulted. Re-up funding can be done within 1-2 days of the request made by fax or phone call. DAILY PAYMENT PERCENTAGE: This never changes from what was stated in the loan document unless the merchant requests it. Many merchants with high/low business cycles requests lowering of the DPP before they go into their slow season and then change it back after the slow season is over. Merchants can request a DPP change in writing. The funding company almost always accomidates the request as long as it is reasonable. The funding company doesn't change the DPP without first discussing the change with the merchant. FEES: There's no cost for the loan application. The applicant will not pay anything UNLESS the deal is funded. These costs usually are under $200 for the 1st loan and usually under $50 for re-ups. Eating/drinking establishments, i.e. restaurant, bar, tavern etc. are the best candidate for CCRF because 60-70% of their income is generated via vs/mc. Traditional lending sources do not like the restaurant industry, their gross margin is usually high enough to absorb the daily payment. Retail, automotive repair, full service spas, dentist, and cosmetic surgeons are also good candidates. We consider internet merchants, furniture stores and gas stations HIGH RISK. We currently cannot work with the adult industry business. PRE-QUALIFYING: This information is provided to help you know if you might be eligible for funding, it is in no way a complete underwriting guidline, but chances are that if you don't meet them, you probably will not get the loan. So this can save everybody time and money knowing this information before hand. So please, check this information out about yourself BEFORE contacting us. We look at both the business (D&B reports) and the owners credit history. All owners must have a personal guarantee. We look at beyond the credit score, but we'd like to see a minimum of 550 credit score. If the owner has a very limited credit history, we would probably reject the deal regardless of the credit score. WHAT'S MORE IMPORTANT IN REVIEWING THE OWNER'S CREDIT HISTORY IS THE PAYMENT BEHAVIOR OF THE OWNER IN THE PAST. The following is a partial list of points we look at: 1) Amount of credit history in the credit report-The amount of history should commensurate with the age of the owner. As a rule of thumb, the more the history, the better. 2) Delinquencies-We understand that some lateness is inevitable as an owner of a small business. But numerous and serious delinquencies (over 90 days) will lower the chance of approval. 3) Number and Amount of collection 4) Number and Amount of Liens & Judgements- If the business owner has tax liens, there has to be a payment plan in place and the payment plan must be current. We do call the tax authority to verify the status of the payment plan. 5) Bankruptcy- Recent bankruptcy (within 5-10 years) will usually result in rejection. 6) Total Number of owners- The more the better. Credit Card Receivable Financing Program: 1)Financing Struncture-Financing is a simple loan with a fixed interest rate. Think of your usual car loan. For example, and just replace monthly payment with daily payment based on the credit card sales amount, and that's it. 2) Payback time-The typical terms are 6 months. However, my underwriters have never enforced the final due date on any of their loans. They understand that flexibility in payback amount & time and the low cost of funds are the most important features merchants are looking for. The funding company can provide longer terms upon borrower's request. 3) Interest Rate-The APR for the loan is 44% for the regular rate program and 24% for the low rate program. It is the daily pay-down of principle that makes the" interest amount" a lot lower than you may think. Please see next for cost-of-capital. 4) Cost- of-Capital-Typical amount is $700-$1,100 for every $10,000 borrowed over 6 months. As a rule of thumb, the cost-of-capital will be lower if the actual payback time is shorter than 6 months (due to increased sales), and vise versa. As an example: We have a customer in Mobile, AL who borrowed $40,000 on July 26, 2005. His business was unhurt from Katrina, and his business went through the roof after the hurricane and paid back his loan in a mere 70 days. His total actual interest paid amounted only to $2,675 (far less than the projected interest amount of $4,400. 5) Collection Method- The funding company debits merchant's bank account for the agreed percentage of previous day's VS/MC sales amount which is typically 15%. As such, merchant statement is completely free of financing related activities. The funding company's affiliated processors only have to provide them with daily batch summary reports. 6) Pre-payment Penalty-The funding company's loan has no pre-paynent penalty. The funding company accrues daily interest basis on outstanding principle only. 7) Fees-There is no fee. However my underwriters charge the borrower for out of pocket expenses for loan origination. An approximate example can be..$6 per individual credit report, $50 per UCC filing, $50 per D & B report, $20 per wire transfer, and actual overnight mail costs for loan documents. These costs are usually under $170 for the first loan and usually under $50 for the re-ups. 8) NSF Fee-My underwriters currently charge the borrower what they get charged by their bank for the NSF deposits. It is currently $10 per NSF return. CCRF Proceedures-From application to funding: 1) Application package-Application package containing "SIGNED" APPLICATION, COPY OF THE DRIVERS LICENSE OF ALL OWNERS, and the COPY OF THE BUSINESS CHECK, can be either faxed to the funding company or mailed-PLEASE MAKE SURE YOU ANSWER ALL QUESTIONS. IF ANY OF THE QUIESTIONS ARE NOT APPLICABLE TO THE BORROWER, THEY SHOULD PUT IN "N/A". Please make sure that you put down the CORRECT BANKING INFORMATION INCLUDING THE BRANCH PHONE NUMBER. IT IS VERY IMPORTANT because we may have to call the branch to receive wire transfer instruction. If faxing, please make sure originals are in good condition because faxing usually deteriorates the legibility. Drivers license is notoriously difficult to send over the fax. PLEASE ENLARGE THE COPY (IF YOU CAN) BEFORE FAXING. E-mailing a scanned image is the best way of sending the DL copy. I will let you know who to fax it to or email it to when the time comes or my underwriters will let you know. If you have special requests, it should be stated in the fax cover sheet. PLEASE UNDERSTAND THIS NEXT PART HERE BEFOREHAND- If you have a P.O.S. (point of sales) sysem, the funding can be delayed because the downloading of their terminal is done by the POS vendor. MICROS is the worst in terms of response time. You should expect 6-8 week delay for MICROS conversion. MAKE SURE THE APPLICATION IS CLEARLY LEGIBLE BEFORE FAXING TO PREVENT UNNECESSARY DELAYS! 2) Pre Approval-The funding company usually makes their decision to fund within 48 hours assuming all the information on the application is accurate. If they require additional information, pre-approval could be delayed until receipt of such information. TIMELY RESPONSE FROM THE APPLICANT WILL PREVENT UNNECESSARY DELAY. 3) Follow-Up Proceedure-The applicant must send in the supporting documents listed on the application instructions AS SOON AS POSSIBLE ONCE THE PRE-APPROVAL IS OBTAINED. Merchant accounts are usually set up within a few days, and the follow up verification must be completed BEFORE the funding. The new signed merchant account application copy is necessary for the funding company to prepare the necessary loan documents. The funding company overnights the loan documents after all the supporting documents have been received and verified. My underwriters require the following BEFORE funding-a) Receipt of properly executed loan documents, and b) ALL terminals and/or P.O.S. have been "downloaded" by the affiliated processor and the funding company has received the first batch report. 4) Funding Proceedure-Funding is usually done via federal wire transfer. The funding company sometimes has to call the branch to obtain the wire transfer instruction. Therefore, ALL APPLICATIONS SHOULD HAVE THE BRANCH PHONE NUMBER TO PREVENT UNNECESSARY DELAY. If part of the loan proceeds is being used to pay taxing authorities, a two party check will be sent out via Federal Express. My underwriters HIGHLY RECOMMEND THE MERCHANT TO KEEP A COPY OF THE CHECK AND THE RECEIPTS FOR THE PAYMENTS FOR THEIR RECORDS. If part of the loan proceeds is being used to pay other bills, checks made payable to the vendors will be either sent to the merchant or to the vendor directly at merchant's request. 5) Post funding proceedure-The borrower must send back the original loan document if the funding was done on the fax copy. If the borrower fails to submit the original loan document in a timely manner, the funding company will not fund on fax copy to the same merchant in the future. PLEASE MAKE SURE THAT YOU UNDERSTAND THAT THE FUNDING COMPANY DEBITS YOUR BANK ACCOUNT FOR THE DAILY PAYMENT. MERCHANT MUST HAVE SUFFICIENT BALANCE IN THE BANK ACCOUNT! Retail Installment Contracts: A consumer contract or retail installment contract that allows a consumer to pay for a business' product or service over time in fixed monthly installments. Installment financing is common among businesses that offer high-ticket products or ongoing services. Example of consumer contracts include... satellite dishes, appliances, dance lessons, timeshare memberships, health and country club memberships, student loans, cemetary pre-need contracts, vocational/technical schools, dating services, modeling schools, karate schools, seminar/sales training companies, cosmetic surgeons, hearing aid clinics, discount buyers clubs, health clubs, furniture outlets, to name a few. We purchase consumer contracts that are legal binding. To be legally binding, a contract should indicate the following terms and conditions... Interest rate the consumer must pay, total amount he or she will pay, length of the contract, amount of the monthly payment, applicable late charges, down payment received, cost of the product before interest, early payoff charges, date of first payment and regular payment due date, and cancellation/refund clauses. We purchase installment contracts that are business to consumer. Finance clients should understand that contracts will be purchased at a discount and a bad debt reserve will be held to cover defaulted contracts. The types of companies that sell us consumer contracts are those who have high profit margins, often 40% or more is needed to work with our discount and reserves. NOTE: For all potential clients, there is a non-refundable one-time origination fee of $500, the underwriters might waive this fee for clients on a case to case basis. On a 36 month consumer contract for a typical client selling to marginal credit consumers, about 70% can be advanced (rates will vary per client) Clients should not be surprised to hear about a discount from the underwriters .The advantage of selling contracts is that the seller can receive IMMEDIATE CASH! Sometime getting immediate cash versus waiting for a monthly payment can help the seller in his/her operations. This can be a day-to-day increase in available cash or in the case of selling an in-house portfolio it can net a business the cash they need for new equipment, expansion, marketing expenses or any other expenses they may have. Purchase rates may vary per client and industry. Generally, underwriters require a consumer to be employed or have another valid income (not welfare or child support), reasonable debt level, good to marginal credit, an income of at least $20,000/yr and a home phone. We don't purchase bad credit. The basic qualities the credit department is looking for are...residence-the last 3 years for applicant, references-2-3 with phone numbers. Bank accounts-checking or savings, credit history-2 or more recent favorable credit ratings open at least 1 year. WE DON'T PURCHASE CONTRACTS IF...Bankruptcy-any bankruptcy must be discharged with at least 1 years worth of new credit re-established. No home phone-No phone, no loan. Collections are difficult when there is no home phone to reach the debtor. Message phones are also not acceptable. Consumer Credit Counselling-The consumer is already overburdened and has agreed not to take on any further debt. Unemployed, welfare/child support, no credit history. Unpaid liens/judgements/collection accounts-The last year must be free ot these items on the credit bureau. No trade items more delinquent than R/I2-They must not appear in the last 6 month history. 20% or more of the credit is negative- It is critical that the business is in good financial condition and the owners of the busniness have good personal credit. Clients who require $10 million or less in receivable purchases each year are ideal clients, however, we will evaluate any request for funding and we have other sources of money readily available. Potential clients should have at least $10,000/month in business to be considered. The process for approval typically takes about 2 weeks from the time we receive a complete finance application. Items required for funding-1)corporate financial statement and balance sheet to date 2)corporate tax return 3)personal tax return on all majority shareholders 4)personal financial statement on all shareholders 5)articles of incorporation 6)unexpired business license 7)copy of 1st and last page of liability insurance policy 8)copy of 1st and last page of your building lease (if you own, please state) 9)any promotional material on the business 10)copy of consumer contract and credit application (unless you plan on using ours) 11) 3 most recent merchant account statements (direct response clients only) Also we have these other services to offer... Servicing-Portfolio account management, and Collections-Delinquent collections. Ask for more details. Street Fighting for single and battered women $20/per 2 lessons: Have you ever been in a hostile situation where you felt helpless because you didn't know how to protect yourself from the bad guy? Now that can all be a thing of the past! I can help you learn how to protect yourself from the bully with the knowledge of street fighting. What you can expect... guaranteed to build your confidence level, quick and effective,easy to learn, doesn't require past martial arts experience or ahtletic ability, has the capacity of defeating the bully, consists of simple, uncomplicated movements, capable of being self-taught and self progressive, does not rely on physical speed or strenght, you do not have to be in tip-top shape physically, and save time and money, pay as you go $20 per2 lessons, no commitment or buying fancy pajamas. Martial arts and boxing are good sport fighting , but when seconds count, you need something to have confidence in and not some fancy stylish moves that take forever to learn and that can actually get you killed if you end up facing a real street knowledgeable fighter! Protect yourself and your family today. Give me a call or email me here at my website. Products that save lives! (mostly for women!) 13 out of the last 17 years, Dallas has been #1 in crime! -Ex police chief Terrell Bolton-, and also on October 1st, 2006, local Dallas News Anchor Gloria Campos Channel 8 news let everyone know that Dallas is the #1 most dangerous big city to live in, beating New York, Chicago, and Los Angeles. Also violent assaults happen every 17 seconds in the U.S! Government agencies estimate that less than 10% of the population uses any kind of defensive device. 80% of the people in the U.S. will be a victim of a serious or violent crime within their lifetime. A woman is raped every 45 seconds! The majority of postcards of missing people are women and girls. Young adult women are assaulted than any other group. No one is exempt from attack! Most assaults take place 6-8 feet. The once reliable laws and institutions designed to protect us have failed! There is little left for us to do except arm ourselves with defensive devices. We must protect ourselves from violent society! You can now be safer than before because I can help you protect yourself and loved ones with defensive sprays and stun guns. Everyone is vulnerable to attack, and I'm working on doing something about it! You can now have confidence in stopping the bad guy in his tracks! Act today, because it just might be too late next time, if there's a next time! For more info call me or email me here at the website. Some of the products are...Pepper sprays-$10-$45, Stun guns-$25-$85, Mini-safes-$12-$20, and Stun rings-$30. Take a stand against the bad guy today! - Trucking Company Financing (Factoring): (Please refer to the Accounts Receivable Financing section above FIRST to see how this type of funding works.) (This is much like the regular type of Commercial Factoring, except it deals with another area that some factoring companies don't want to deal with... Accounts receivable invoicing to Trucking Companies.) There are roughly more than 360,000 trucking companies in the United States with nearly 3.5 million drivers trying to earn a living from moving the products we use daily from place to place. Every day these companies generate hundreds of thousands of freight invoices billed to both shippers and freight brokers. Now considering that the average time it takes for these bills to be paid is, in many cases, exceeding 45 days, it's no wonder that many of these carriers are struggling to survive. Daily expenses such as fuel, driver settlements, repairs, tolls, licensing, and other similar items are very predictable cash drains and typically become significantly large as the fleet grows. It's estimated that around 15,000 small fleet operations go out of business each year for various reasons. There are some common threads to most of these failures: 1) Many carriers take loads from freight brokers based solely on a fuel advance or quick pay arrangement. Brokers know that truckers willing to pay them a fee for these services are desperate for a load to haul. These brokers generally pay the truckers among the lowest per mile rates in the industry. It's highly likely that the carrier is losing money on every load he handles this way, taking into consideration the added fees and the low rate. If all or most of his business comes from freight brokers, it won't be long before his cash flow suffers significantly. The best way to solve this problem is for carriers to become less reliant on broker business and work to establish direct relationship with shippers. 2) Taking loads from brokers who either have no credit established or have a poor credit rating also leads to problems. It takes from 20-25 new loads to make up for the loss incurred from just one unpaid load. Most small fleet owners don't have access to the financial resources to subscribe to credit reporting agencies, and others don't have the experience to know or understand how to analyze credit. Failing to check credit and establish prudent limits for customers IS PERHAPS THE SINGLE MOST IMPORTANT REASON FOR THE FAILURE OF SMALL TRUDKING FLEETS. 3) Unfair broker contacts are a problem. Some freight brokers will offset the entire amounts owed to the carrier against just one freight claim. If a shipper withholds payment because of damage in transit or some other related dispute, the broker in this case will withhold the full value of the shipment from the balance of freight bills due to the trucker. The trucker will usually file this claim with his insurance company, but it's common for settlements to take weeks or even months. This practice can be devastating to the cash flow of a small operator. Ok, so how can a small trucking company avoid these types of problems? First and foremost, it should IMMEDIATELY start factoring with a small fleet factoring specialist. Next, the company should make sure that it uses an attorney that has extensive experience within the industry rather than a general business attorney. In most cases, the rates to factor will be considerably less costly than the quick-pay and fuel advance fees offered by the broker. By having cash available through factoring, the carrier can be selective and only do business with brokers who pay the highest rates per mile and pay in 30 days or less. By combining specialized services, such as a fuel card program that allows the carrier to pay for diesel directly at the pump, instant credit approvals on new loads, and an extensive knowledge of the industry, a trucking -specialized factor can be a vital resource for your growing trucking company. Some documents that might apply are... Aging Report (AR), Articles of Incorporation, Balance Sheet, and Income Statement. Other documents may or may not apply.
- Staffing Company Financing (Factoring) When a staffing business is just starting out, they lack two vital attributes for a bank to consider them as a good loan candidate. First of all, a startup company does not have any tangible assets with which to secure a loan. A staffing agency's primary asset is its accounts receivable, which, unfortunately, are not concrete enough to a bank because they can disappear quickly and without notice. Banks look for assets that are more tangible, such as real estate, machinery, or equipment--something physical that they can place a lien on wherever it goes so in the event of a default, the bank can still lay claim to and liquidate that collateral. On the other hand, there are some accounts receivable factoring companies that are willing and able to work with startup staffing companies. Rather than loaning money, factors provide cash based on the quality and liquidity of a temporary staffing agency's assets, specifically their accounts receivable. If a staffing agency were to go out of business, a factoring company can continue to collecto on invoices that were issued prior to the staffing agency's closing up shop. The second area that can prevent a new staffing agency from obtaining a business loan is that banks provide loans on the basis of a business's historical financial performance rather than its potential for success. Temproary staffing companies that are just starting out have no financial history, which is viewed by a bank as just as risky as having a bad one. Moreover, banks traditionally will not consider loaning money or extending credit to companies that have been in business for fewer than three years because of the high failure rate for new businesses. Once again, some factoring companies have a different approach to funding new businesses and are not so easily swayed by the fact that they are just opening their doors. For starters, factors consider consider the quality of a staffing company's accounts (the credit-worthiness of their customers and the validity of their invoices), which allows them to provide funding even when the company is new. Factoring companies use a different picture by investigating the creditworthiness of their clients' customers. As long as the client is selling to good, paying customers, and the factor is comfortable that they will get paid for the invoices they buy, the staffing agency's credit becomes a smaller detail in the grand scheme of things. Another time when staffing agencies find themselves in need of cash is during a rapid growth period. For example, a temporary staffing company may have landed a contract with the area's biggest company, and they need to hire and staff an additional 20 employees immediatlely. The agency might have emough money to recruit employees to fill the demand, but they might not have enough readily available cash on hand to pay their employees once they have completed their shifts. This situation is quite common in the staffing world because business owners are expected to invoice and make payroll on a weekly basis, while the facilities they staff regularly can take quite some time to pay their invoices. Now let's analyze the situation from a banker's perspective. Banks consider a company's ability to repay a loan based on its historic earnings cash flow. Unfortunately for our growing temporary staffing company, its previous income and cash flow is much smaller in comparison to its increasing need for financing. Somethmes a staffing company's previous year's income is enough to secure a bank loan--that is to say, if the staffing agency wanted to stay at its same operating size. More often than not, a staffing company goes to a bank looking for a larger loan than last year's earnings could justify because they intend to use the loan to double or triple last year's revenues. Unfortunatley, a bank wouldn't feel comfortable loaning money to a company based solely on its potential to grow. Once again, banks look at a profitable operating history to justify lending. So the bank lending process eventually turns into a never-ending cycle--the staffing company needs money to grow, but the bank needs to see a history of growth to give out money. Enter the accounts receivable factor. Though a factor will look into a growing staffing business's operating history, it's not a deal killer if the company doesn't have a track record of high earnings, because a factor is generally more concerned with the future of the business. A good rule of thumb to remember. Banks look to a company's past to justify approving a loan, while factoring companies look at a company's future growth potential to justify advancing cash in its invoices. Going back to our example, the fact that the staffing agency just signed a contract with one of the biggest and fastest paying companies in the area means nothing to a bank, but it's great news to some factors. EXAMPLE SCENARIO HOW FACTORING CAN HELP: Let's say that you want to start a staffing agency called Super Staffing. As a staffing agency owner, your job is to place and ("rent") employees in temporary assignments with companies. Super Staffing provides employees that do clerical work, such as answering phones and making copies. Companies pay Super Staffing a premium for its services because they prefer to "rent' (rather than hire) personnel from Super Staffing to help meet expected demands in their businesses. Super Staffing starts with $2,000 in the bank and on your first day in business, you secure a contract to place one employee for two months. The customer Big Corporation (BigCorp.), is a fortune 500 business that will pay you $1,430/wk for your temporary employee. In turn, you pay your employee $1,000/wk for his work, and keep the $430 as profit. With this in mind, let's look at the business in action...WEEK 1: Super Staffing sends Jake, the temporary employee to work for the customer. That Friday, Super Staffing pays Jake $1,000 for his work, through payroll, and sends an invoice for $1,430 to BigCorp. BigCorp. receives the invoice and begins processing it. The invoice, a promise to pay by the customer, goes into Super Staffing's accounting books as an "Accounts Receivable" ("Payments on accounts to be received"). BigCorp. is a large and stable company. They pay their invoices every 30-45 days, as is typical in a business-to-business agreement. Let's look at Super Staffing position:
- CASH POSITION ACCOUNTS RECEIVABLE (A/R)
- Cash at week start $2,000 Invoice to BigCorp $1,430
- Payroll expense (-) $1,000
- Cash at week end $1,000 Total unpaid Invoices $1,430
- WEEK 2: Things are going well, and Jake shows up for his second week of work. Again, at the end of the week, Super Staffing pays his salary of $1,000 and sends a second invoice to BigCorp. for $1,430. The following shows the staffing agency's financial psoition this week.
- Cash at week start $1,000 Invoice 1 to BigCorp. $1,430
- Payroll expense (-) $1,000 Invoice 2 to BigCorp. $1,430
- Cash at week end $0 Total unpaid invoices $2,860
- .The Problem: As you can see from this example, the staffing agency has a very big problem. After its second week , it has no money in the bank, and it has $2,860 in unpaid invoices. Although it is a profitable company (it made $860 in profits in just two weeks), the company is in trouble. Unfortunately, you can't pay employees or suppliers from your Accounts Receivable. They usually prefer cold hard cash, Unless BigCorp. pays some of their invoices before the end of week 3, which is very unlikely, Super Staffing is going to miss payroll. If you, as the owner, can get some sort of quick financing, such as a bank loan, Super Staffing may survive. Otherwise it is doomed. Now, lets play with this scenario a bit further. Let's say that during week two, Super Staffing gets a call from another large prospect company that is requesting the placement of 10 employees for four weeks. This would be a great opportunity for Super Staffing. It would boost the business incredibly and drive profits through the roof. However, do you think that Super Staffing can take on the opportunity? If you look at the above scenario, you will notice that they can't take on any new business. Super Staffing does not have the required $40,000 ($1,000 * 10 employees * 4 weeks) cash cushion to hire and pay 10 employees for four weeks, while they wait to be paid by the new customer. Reluctantly, as the owner, you will have to pass on a great opportunity to grow your company significantly and let the compettion get this new business. THE SOLUTION: Now, let's consider the following scenario. What would happen if Super Staffing was able to sell its invoices the day they were generated to a finance company (called a factor), who would buy them for immediate cash at a discount of 6%. The factor structures the sale in two parts. He advances 70% of the invoices' value the day the invoice is issued and rebates the remaining 24% (30% less the 6% discount) once the invoice is paid. Do you think that such an arrangement would help the business? Don't forget that Super Staffing makes $430 of profit per invoice. Do you think they can affort do pay 6% (roughly $86 per invoice) for this service? The answer is a resounding yes, as we will see. Let's look at the example again, this time with the benefit of a factoring agreement in place.
- WEEK 1 : Super Staffing sends an invoice for $1,430 to BigCorp. at the end of the week, and pays Jake his $1,000 for that same period. This time, however, Super Staffing also sells the invoice to a factor and gets an immediate advance of $1,001 (70% of $1,430). They can also expect to receive a rebate on the remaining funds, less the factor's fee, once BigCorp. pays the invoice. Let's look at Super Staffing's financial position. As you can see, their cash position is gook, even better than when they started.
- Cash at week start $2,000 Invoice 1 to BigCorp. (factored) $1,430
- Payroll expense (-) $1,000
- Advance on factored invoice (70% of $1,430 provided by factor) (+) $1,001
- Cash at week end $2,001 Total unpaid A/R None
- WEEK 2: Week 2 goes by, and again Super Staffing issues a $1,430 invoice to BigCorp. and pays Jake (through payroll) his $1,000 salary. The second invoice is also factored, which accounts for another $1,001 cash infusion. Super Staffing cash position is now at $2,002.
- Cash at week start $2,001 Invoice 1 to BigCorp. (factored) $1,430
- Payroll expense (-) $1,000 Invoice 2 to BigCorp. (factored) $1,430
- Advance on factored invoice (70% of $1,430 provided by factor) (+) $1,001
- Cash at week end $2,002 Total unpaid A/R None
- THE RESULTS: As you can see, factoring has helped Super Staffing's financial position. Furthermore, this short example only showed the advance portion of the transaction. After four weeks, BigCorp. will start paying their invoices to the factor, and the factor will start rebating the remaining 24% (don't forget that the factor makes a 6% discount in this example) per paid invoice ($343.20 per invoice). This would provide additonal cash in the bank, further strengthening Super Staffing's financial position. And what is the cost? In this case, 6% of each invoice or $85.80. This only gets better. Let's say that Super Staffing lands a large contract for ten employees to work at Fortune 500 company for four weeks. Could they afford this new growth? Of course they could. They would be able to factor the new company (just like BigCorp.) and have enough cash on hand to meet payroll, enabling them to grow dramatically. With factoring, the company not only survived, it thrived. This is a powerful tool to use to ENERGIZE your business. Let us help you have more cash on hand and less hassles to worry about! Without added debt!
- (An example table is shown for the above figures). This is for educational purposes only and does not guaratnee the same fees that apply here. It depends on different variables, but the faster your good paying customers pay back, the less the fees should be.)
- Week 1: (Without factoring)
| Cash Position | | Accounts Receivable | | | Cash at week start | $2,000 | Invoice 1 to BC | $1,430 | | Payroll expense | (-) $1,000 | | | | Cash at week end | $1,000 | Total unpaid invoices | $1,430 |
- Week 2: (Without factoring)
| Cash at week start | $1,000 | Invoice 1 to BC | $1,430 | | Payroll expenses | (-) $1,000 | Invoice 2 to BC | $1,430 | | Cash at week end | $0 | Total unpaid invoices | $2,860 |
- Week 2: (With factoring)
| Cash at week start | $2,000 | Invoice 1 to BC (factored) | $1,430 | | Payroll expenses | (-) $1,000 | | | | Advance on factored invoice (70% of $1,430 provided by factor) | (+) $1,001 | | | | Cash at week end | $2,001 | Total unpaid A/R | None |
- Week 1: (With factoring)
| Cash at week start | $2,001 | Invoice 1 to BC (factored) | $1,430 | | Payroll expense | (-) $1,000 | Invoice 2 to BC (factored) | $1,430 | | Advance on factored invoice (70% of $1,430 provided by factor) | (+) $1,001 | | | | Cash at week end | $2,002 | Total unpaid A/R | None |
- Some documents that might apply are... (AR) Aging Report, Articles of Incorporation, Income Statement, and Balance Sheet. Otherdocuments may or may not apply.
- Asset Based Lending: An asset-based credit line is a revolving line of credit collateralized by a business's assets. Those assets may include accounts receivable, inventory, machinery and equipment, real estate and/or other assets. When a business receives an asset-based line of credit, the amount of credit available to the business fluctuates based on a percentage of the business's current assets. For example, as inventory is sold in the normal course of business, the proceeds from these sales go to repay the line. The amount of a business's collateral changes daily, so the asset-based lender must monitor the value of it's client's collateral continually, and adjust the amount ot the credit line accordingly. An asset-based credit line is structured as a loan, not as a purchase as in accounts receivable factoring is, therefore, providing this type of credit line is called asset-based lending. Good prospects for asset-based lending are businesses that generate more than $4 million in annual sales. Ideal prospects are companies that produce at least $10 million in sales and need at least a $1 million credit line. These prospects may be too large to benefit from factoring, but may find that asset-based lending suits their needs.
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