WHAT IS ACCOUNTS RECEIVABLE FUNDING?

Widely accepted as an alternative financing source, accounts receivable funding is used extensively in almost every industry by companies that need immediate cash -either for growth or for survival -and may or may not qualify for traditional loans or grants.

Converting your accounts receivable (invoices) to cash gives you immediate and reliable control over your business' cash flow.  This process is known as factoring and has been in use for many years by various industries. 

1^st American Funding Solutions will facilitate:  

• Locating a source of funding (known as a factor) best suited for your business.  
• Arranging the best terms for the factor to buy your invoices. 

Once the initial approval process is complete (generally in 7-10 days), you receive your cash (typically 1-2 days).  You'll receive a percentage of your invoice until the factor collects the monies from your client.  Once the factor is paid, you'll receive the balance of funds due you, less the factor's fee.  You determine which invoices and how many invoices you want to sell to the factor.  Because you are selling your invoices, you do not take on any additional debt, which provides you with a stronger balance sheet and stronger cash flow position.  Overall, you've successfully strenghtened your credit worthiness and appeal to obtain even further financing from a loan officer.

With accounts receivable funding, your invoices for goods or services rendered to your customers can be converted into immediate cash to better manage and expand your business. Some of the more common industries that rely on accounts receivable funding to maintain a steady flow of cash include:

• Personnel/temporary agencies
• Trucking companies
• Caterers
• Commercial printers
• Commercial bakeries
• Manufacturers
• Wholesalers
• Importers
• Distributors
• Apparel (garment. textile}
• Communications companies
• Footwear manufacturers
• Toys and sporting goods
• Security companies
• High-tech and related industry
• Cable installers
• Professional services (legal, accounting}
• Medical groups
• Physicians
• Hospitals
• Nursing homes
• Assisted living facilities

and
ANY BUSINESS GENERATING INVOICES
TO BUSINESS OR GOVERNMENT

COMMONLY ASKED QUESTIONS - ABOUT ACCOUNTS RECEIVABLE FUNDING

Q.	How does accounts receivable funding work?
A.	Simply put, accounts receivable funding is the purchase of accounts receivable from a business at a discount. It is designed for businesses that need money immediately, and can't afford to wait 30, 60, or 90 days for a customer to pay. In most cases, either the business owner can't meet his cash demand (because, for example, his customers are slow to pay or income is low due to a seasonal slowdown), or his business is growing so rapidly that its cash flow can't keep up with its growth.
Q.	What type of business can take advantage of this alternative funding source?
A.	Any business that generates an invoice and delivers a verifiable product or service qualifies.
Q.	Must I agree to finance a minimum volume of future receivables?
A.	No. Finance one invoice or as many as you need to meet your cash flow needs. Stop or continue as needed.
Q.	Can a business with a history of bad credit (or a new business with no credit) qualify?
A.	Yes! Another benefit of accounts receivable funding is that it depends on your customers' creditworthiness, not yours. (And, as part of our service, we do the research to assess your customer's creditworthiness for you.)
Q.	Can my business qualify if we already have existing credit lines, SBA loans or are a debtor in possession (Chapter 11)?
A.	Yes! Our credit line complements any loan you may have or are seeking. We work with your existing lenders to enable you to access additional funding.

FREE, No Obligation Consultation!
Contact us by phone at 443-604-8482

E-mail: Melanie@1stAFS.com