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Receivables Financing or "invoice factoring" is a great way to get money for your business.
Accounts receivable financing is not a loan; it's an advance against your invoices. You are selling your outstanding invoices to a factoring company who then gives you back up to 80% of the invoice value in the form of a loan against those invoices. Receivable Financing is mainly used to generate immediate cash flow for the business selling the accounts receivable. These are a great funding option as they provide an immediate advance of cash to you leveraging your outstanding invoices. This means as your business grows so does the amount of funding you will qualify for so you can meet increasing demand. Most major companies including most major Fortune 500 companies utilize some form of Accounts Receivable Financing. One of the best benefits of receivable financing is giving your business an increase in working capital without needing to borrow money or tie up your business or personal assets. This boost to your cash flow positively impacts your profitability. You can receive money quickly, typically within 24 hours from approval. This is much faster than if you were trying to collect on the invoices on your own and wait for that money. Prior to purchasing your invoices, a factor conducts a credit analysis on the client you are invoicing to determine their risk or repaying the invoice. You are entitled to the resulting analysis which is a huge benefit as it can assist you in your future business dealings with that client. Another big benefit of Receivable Financing is that you are not obtaining a loan. The cash advanced is based on your client's credit status, not yours making it easier to qualify for. You may qualify for factoring even if you are a new company without an established track record, have a tax lien, or even declared bankruptcy. This is not considered a loan since you are literally selling your own receivables. And you can be approved for as much as 25 million dollars in financing. Accounts Receivable Financing really boosts your cash flow by providing an immediate advance of cash into your business against the value of your outstanding invoices.
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We have a powerful funding solution for insurance agents called book-of-business financing. With this financing you can get long-term loans of 3-5 years at rates typically ranging from 5-8%. To get approved all you will need is a book-of-business of renewable commissions. If you have this, you can be approved even with credit scores as low as 600. You can secure your money within 30 days or less, and qualify for $10,000 or even $500,000 in financing. We fund a lot of these deals… we just closed on one for $349,000 the other day that the business owner is using to grow their business. You can get approved for as much as 120% of your renewable commissions… …Available loan amounts are so high that to date EVERY client we have closed on for this program has elected to take less money than they were approved for. You can even use the book-of-business from an agency you purchase, so if you are looking to buy an insurance agency or expand your current one, this is a PERFECT solution. And you won’t have to deal with all the over-reaching document requests that most lenders demand. You will only need to show your book-of-business and you’ll be asked for a couple of references. If you are an insurance agent with a book-of-business, this is a very unique type of financing designed just for you that you REALLY will want to check out. Call me to start the process to see how much money and credit you can get for your business right now. (888) 684-8750 DAN GARCIA As 0% startup financing becomes increasingly popular I am sure you have questions that really decodes this program… and tells you the things lenders don’t want you to know.
Most questions you should have are…
888-684-8750 Dan As a small business owner it can be quite a challenge deciding what is the best of business credit card for you and your business.
When looking for the best types of card for your business you will first want to know about the different types of business credit cards that are available today. A Business Debit Card is a card that works like a business checkbook because the limit is the amount of funds you currently have available in your business checking account. Every time you use it to make a purchase the amount charged is deducted right from your account. A Prepaid Business Card is a convenient alternative to carrying cash and works just like a secured consumer credit card. You add funds to your account and whatever amount you add is available to use for purchases. A Secured Business Credit Card is specifically designed for businesses with no credit or less than perfect credit history. An initial security deposit is required which establishes your card's credit limit. In most cases a minimum deposit of $500 is required and once you begin making purchases you will receive invoices like a regular credit card. An Unsecured Business Credit Card works just like a normal, revolving, unsecured consumer credit card. Credit limits are based upon many factors depending on the issuer and can range from personal credit and/or business credit ratings, years in business, annual revenues and so on. These credit cards give your business the opportunity to earn incentives and rewards. A Business Charge Card has all the convenience of a credit card without the high price of interest. When using this card you'll have to pay your balance in full each billing cycle. Because you can't carry a balance, a charge card doesn't have a periodic or annual percentage rate, so there is no rate for a charge card issuer to disclose. If you plan on paying your balance off each month, a card offering travel mile rewards or cash back bonuses may be the best business credit cards; however, if you plan on maintaining an ongoing balance, a low introductory or standard APR might be a better option. Remember, just because a card issuer offers all kinds of perks and rewards doesn't mean it's necessarily the best card. Always read the fine print so you completely understand the terms and conditions and fees associated with the card. It's also important to note that even though business credit cards are not covered under the new CARD Act certain issuers are extending the CARD Act protections to its card holders. This is just another factor to consider when applying for a business credit card for your business. Now that you know the types of business credit cards available, insure you are using your business credit building system to start on building business credit for your business with no personal guarantee and no personal credit check. There is a lot of factors that are important in business credit building. These factors must all be perfect for a creditor to extend your business credit. If you don't meet one of these requirements, you will probably be denied and the creditor will never tell you why.
First, make sure you have the proper state and federal licenses you need for your business. If you are required to be licenses, you need your license before you apply. You will also want to make sure you have your business bank account setup. Merchants will not extend you credit unless you have a business bank account, and the name on the account is the same as on the corporation papers. You will need a physical location or virtual office for your business also. You can be approved for much more credit if you have a credible business with a real location. UPS and PO boxes won't work, you will need a real physical address. Another factor merchants look at before issuing credit is whether you have a business website and email setup. Again, they are looking for a credible business. Most legitimate businesses today have their own website and professional email addresses. Banks will be looking for those before issuing credit. You will also want to insure your business has a real phone number that is a land-line, not a cellular phone number. And you will want to insure you have that phone number listed with 411. Most merchants will do a 411 check and if your phone number is not registered, you won't be approved. There are many factors to insuring you get approved for business credit. In this email we discussed just a few of the many factors you will want to meet to be approved. If you're concerned as to your established business credit, call us and we'll point you in the right direction to credit and funding. Established businesses with financials and tax returns showing strong revenues and profit can get approved for up to $250,000 in unsecured funding with low interest rates and generous payback terms with our unsecured business lines of credit.
Your business can obtain up a credit line up to $250,000 that can be used for any purpose you desire. You can use your credit line for marketing and advertising, purchasing inventory and equipment, paying utilities, even paying payroll. Approvals come with low fixed interest rates insuring your payments stay low even as you accumulate higher balances. You can be approved for rates as low as 2% over the prime rate. Plus your new credit line reports to the business credit reporting agencies helping you build your business credit profile and score. Approval amounts range from $50,000 to $250,000. The exact approval amount in large part is determined by the revenues and profits reflected on your tax returns. You can be approved and have full access to your new credit line within 4-6 weeks. Your approval term will vary typically between 2 to 6 percent over the prime rate, based on risk. Lenders do also include at least a 1% success based funding fee. To qualify, all owners with 20% ownership are only required to have FICO credit scores of 650 or higher. To be approved owners shouldn’t have any derogatory credit marks on their personal credit report within the last 12 months, no active judgments or collections in unpaid status, and no bankruptcies reporting. Owners will also be required to maintain a clean credit history during the funding process. To be approved lenders will want to see full business tax returns for the business for at least 2 years. To qualify your business returns should reflect a $350,000 or more in annual gross revenue. You can qualify for between $50,000 and $250,000 in financing with our unsecured business lines of credit. And with low interest rates and generous payback terms, there has never been a better time to apply. You may have heard of Dun & Bradstreet before. They are the biggest business credit reporting agency, by far, in the world. What most don’t realize is that the United States is only a very small part of the overall records that D&B has. Most of their records of business owners are not from the US, not even from this continent.Of their 200 million plus records on file, over 54 million were in Europe, while 33 million were from North America. D&B even has a reach into Latin America where they have another 12 million records. Plus they have another 27 million records from Asia Pacific. Africa is one area where D&B has the fewest records with less than 2 million records on file. Also in the Middle East D&B only has a little over 1 million records on file.D&B truly has a massive presence worldwide. This is one of the ways they have over 200 million records on file, and are the largest source of business related data in the world. Please contact us, your coaching team, with questions during your business credit building process. As business owners we tend to rely on our bank when we need funding. The problem with this is banks only have access to limited financing options.
And most financing options banks do offer look at all the business financials, the personal credit and assets of the owner, and other business factors such as revenue and assets. These loans, such as SBA insured loans, are tough to qualify for as all aspects of the business must be perfect to be approved. This is where I can help you. Many types of financing I have available for you will not look at all the business financials, or the assets or credit of the owner, or even the revenue and business assets. There are many sources of financing available that only focus on certain aspects of your business, not the entire business itself. For example Purchase Order financing is a way you can secure money for your business quickly. With this option a factoring company is only focusing on your outstanding purchase orders, and nothing else. The lender is more concerned with your ability to pay than yours, and the lender will even collect on the outstanding purchase orders for you. Your business and personal credit and assets don't really tie into the lending approval decision; they are mainly concerned with only your purchase orders. Account Receivable financing focuses on your receivables, Equipment Financing focuses on what equipment you own, Revenue Financing focuses only on your business revenue. These are only a few of many financing options that are available to you which focus only on certain aspects of your business, not your entire business. This makes it easy for you to obtain financing based on the strengths of your business, while insuring lenders ignore the weaknesses. Another benefit of having finance options is that your monthly payments can also vary. If you obtain a SBA loans, your payments are set on how much you must repay each month. So if you have a slow month, it might be tough to repay that loan payment. But many finance options limit how much you must pay back to how much revenue you are bringing in. For example you can obtain $50,000 through a Merchant Advance and you will be charged a small percentage on your future credit card sales until you pay back the loan. If your credit card sales drop in a month, so does your loan payment. So as your sales fluctuate so does your payment. Business Revenue lending works the same as it is based on your business revenue. If your monthly revenue drops in a month, so does your loan payment. I have a multitude of financing options available for your business. Congratulations to one of our Importer clients who just secured $200,000 in cash flow financing! Javier is using his funds for expansion of his current business, including a huge purchase that will quadruple his revenue! We were able to close this one quickly so he didn’t miss a very unique opportunity to rapidly grow his business. Congrats again Javier! By John Reosti
June 13, 2016 Lenders are suddenly lining up again to make federally guaranteed loans to small businesses for real estate and equipment purchases. The reason? Later this month the Small Business Administration plans to unveil a permanent refinance option to its so-called 504 program that lenders and agency officials say could be a game-changer. "We see 504 refinance as a huge opportunity for lenders like us," said Alex Cohen, the chief executive of Liberty SBF in New York, which expects to originate more than $200 million of loans over the next 12 months thanks largely to the change. Its plan partly relies on financial backing from large financial institutions. Created in 1958, the 504 program provides a fixed-rate, long-term financing option for growth-minded businesses that want to buy commercial property or lease new equipment. Except for a brief span in 2011 and 2012, the program had always been restricted to first-time property buyers. The decision to back refinances was announced by Administrator Maria Contreras-Sweet on May 27 and is scheduled to take effect June 24. To accommodate the expected surge in 504 refinance activity, the program’s funding authority will double, to $15 billion. By comparison, the SBA's flagship 7(a) program has $26.5 billion in funding authority. Both programs are considered zero-subsidy, which means their credit costs are covered by fees paid by borrowers and lenders. To fund all those new loans, Liberty has raised $75 million from private investors and increased its existing credit facility with Capital One Financial. Liberty has also hired Raymond James to help it raise an additional $100 million, according to Cohen. In the same vein, Fountainhead Commercial Capital in Orlando, Fla., recently raised $23 million in part to take advantage of the 504 refinance option, CEO Chris Hurn said. "We just closed a big capital raise partly because we knew this was coming," Hurn said. "If you look at the historical 504 data, you can see volume dropped precipitously in 2013, after the refinance program expired," said Bob Coleman, author of the Coleman Report, a trade newsletter for small-business bankers. "I fully expect it to ramp back up." Unlike the 7(a) program, where banks originate many of the loans the SBA guarantees, 504 loans are originated through nonprofit certified development corporations. For first-time borrowers, banks are vital partners, since CDCs typically finance just 40% of a credit. Banks or other lenders provide 50%, and the borrower is responsible for the remaining 10%. Banks stand to be significant players in refinance as well. Liberty SBF, for instance, receives the lion's share of its loans via paid referrals from banks. Cohen said he wanted banks to view Liberty as "a secondary option" when they cannot extend credit to a borrower. According to Hurn, 504 refinance may provide banks with an opportunity to "prune" their portfolios by referring clients to CDCs. "If they can do it in a strategic fashion, it's an opportunity to free up bucket space," he said. Like 504 lenders, Ann Marie Mehlum, the SBA's associate administrator, said she is also expecting a meaningful increase in the program's lending volume as a result of the refinance option. "We are expecting additional business," Mehlum said. "We expect there is demand. We've worked hard to get it up and running as quickly as possible." Claire O'Rourke, the vice president for government relations at the National Association of Development Companies, has lobbied hard for 504 refinance. "It's definitely been a top priority, if not the top priority," O'Rourke said. Her boss, NADCO President and CEO Barbara A. Vorhyzek, called the new option 504's "holy grail." Vorhyzek, said she "conservatively" expects the program's lending volume to jump 20% to 30% as a result of the refinance option. In the four years since the refinance option was allowed to sunset, 504 lending activity has languished compared to the more popular 7(a) program. Indeed, while 7(a) appears all but certain to break its volume record for a second consecutive year, 504 is presently on pace to guarantee fewer loans than it did in either 2012 or 2013. "There has been more use of 7(a) for real estate in recent years for a variety of reasons, not all agency-driven," Mehlum said. Congress gave the SBA the power to create a 504 refinance option and to increase the program's funding authority last year, as part of the omnibus spending bill enacted in December. Since then, SBA officials have worked feverishly to translate the legislative grant into a working regulation. "We did it pretty quickly," Mehlum said. "I'm pretty proud of my team." The regulation Contreras-Sweet announced is actually an interim-final draft, which means SBA can still make some last-minute changes. Interested parties can also submit comment letters to the agency until July 27. Coleman said he has noticed few if any hints of dissatisfaction with the new refinance option as it is currently written. "I haven't heard anyone griping," he said. Coleman added that the quickness with which Congress and the SBA moved to reinstate the refinance option surprised him. "People have been calling for this for years, and it never got done," he said. "We're very fortunate small business is a bipartisan love affair," O'Rourke said. "This got done because everyone wanted it to get done." |
Dan GarciaTrevana Properties is a placement company working with a variety of hedge funds, REIT's, commercial banks, specialty boutique lenders, private investors and other funding sources not widely known to the general public. Archives
November 2016
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