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Cash Flow Is The Key To The Success Of Any Business

  • Could you get an unlimited credit line with $0 debt?
  • Could you offer your customers great terms, but still get paid immediately?
  • Could you transfer the burden of collecting on your invoices to someone else?

Liberty Funding International says Yes, Yes & Yes!

How? Using an alternative funding method called Accounts Receivable Funding(Popularly known as Factoring)

What is Accounts Receivable Funding?

Widely accepted as an alternative financing source, accounts receivable funding (also known as factoring) 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.

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
  • Hospitals
  • Physicians
  • 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
  • Nursing homes
  • Assisted living facilities

Basically, any business that's generating invoices to another business or the government qualifies to utilize accounts receivable funding as a way to get immediate cash to grow their business!

Benefits of Factoring Receivables

Factoring is a flexible financial solution that can help your business be more competitive while improving your cash flow, credit rating, and supplier discounts.

Offer better terms, Win more business, Be more competitive!

  • With Factoring you can attract more business by offering better terms in your invoices. Most companies negotiate on price to win business in a competitive market, but with Factoring you can negotiate with terms instead of price.
  • To your customers, better terms can be more attractive than better prices.
  • When using attractive terms to win business, you can build the cost of factoring into your costs of good and services.

    Example: A new customer may choose to do business with your company because you can offer NET 60 or NET 90 terms even though your competitor (who isn't factoring) can only offer NET 30 terms but has a 5% better price. If you factor the subsequent invoice at a discount of 5%, you have leveraged factoring services to win the business at no extra cost and improved your cash flow at the same time. With advanced funding you can pay your suppliers early to receive a discount on your next order and improve your overall margins.

    Immediate access to unlimited working capital, No new debt

  • Eliminate long billing cycles. Receive cash for your outstanding invoices in 24-48 hours.
  • No new debt is created. Factoring is not a loan. This allows you to preserve your financial leverage to take on new debt.
  • Increases your purchasing power and provides cash for marketing, expansion, and new equipment.

    Focus on growing your business

    • The Factor assumes the responsibility and risk of collecting payment.
    • The Factor does most of the work processing invoices, saving you time.

    Take advantage of supplier discounts, Build your credit rating

  • The increased cash flow from Factoring will allow you to pay your vendors earlier or buy in larger quantities.
  • Often times you can offset the cost of Factoring by taking advantage of supplier discounts offered when you pay faster or buy in larger quantities.

    Flexibility

  • Factor as much as your want or as little as you want. You decide.
  • No obligations. No binding contracts.
  • There are No minimums and No maximums in the amount you can factor.
  • Funding is based on the strength of your customers.

    Other benefits of factoring?

    • It stimulates cash flow.
    • There are no stipulations about how to use the money.
    • It does not create debt on your balance sheet.
    • It increases your purchasing power, enabling you to do more business.
    • Eliminates the need for bank loans or SBA Loans.
    • Improves your credit rating, and gives you cash to meet your obligations.
    • Eliminates using equipment, real estate or inventory for collateral.
    • Saves on your in-house staff costs.
    • Presents a professional image to your clients.
    • Eliminates the need for venture capitalists or partners that share in decision-making and profits.
    • Receive credit reports at reasonable rates.
    • Can enable you to meet payroll, pay your taxes on time, and eliminate the need to file bankruptcy.


    Factoring Versus Bank Loans

    In many situations, factoring is more appropriate than bank financing, because factoring:

  • Is based only on the strength of your invoice (customers).  A client's ability to raise cash by factoring is based on the total accounts receivable, rather than on traditional measures of financial strength and stability of your company.

  • Provides continuing cash flow with no requirement of periodic payments or interim payoffs.  New sales continuously create new power to obtain cash, and the business does not have to deal with renewal of loans or worry about maturity dates. NO DEBTS!!!

  • Gives a business unlimited access to cash as sales and receivables increase. There is no ceiling beyond which the factor must stop providing cash. The more sales a business makes, the more cash it can draw. The factor does not concentrate on the business debt/equity ratio to provide funds, as banks do.

  • Offers a dependable, continuing source of cash without the necessity of making separate loan applications.  There is only one setup process, then you control how much and how often.  It's like a cash machine you can utilize whenever the need arises.  If you need more cash, send us another invoice.  You control the relationship, always!

  • Avoids the necessity of obtaining funds from venture capitalists, who receive an interest (ownership) in the business and generally have a say in how the business is run.  You retain management control.

    Saves time and allows you to focus on running the business.  The business owner isn't waiting for a Loan Board to grant or deny his or her loan. Loan Boards' decisions are influenced by many considerations, and the outcome is often unpredictable. With factoring, periodic delays and negotiations are eliminated, allowing the business owner time to do what he or she does best - "run the business."

    Government Vendors

    We specialize in Government Vendors "Assignment of Claims Act of 1986"

    What does this mean for you?

    Any government contractor, under the the Assignment of Claims Act of 1986, may assign it's rights to be paid amounts due or to become due as a result of the performance of a contract to a bank, trust company or other financing institution.

    Larger vendors have been doing this for years.

    Simply put, the U.S Government encourages their vendors to seek accounts receivable factoring of their invoices in order to help them grow, improve cashflow, increase performance, and level the playing field.

    Access Unlimited Capital using the creditworthiness of the U.S. Government !!!


    Why Work With Us?

    • Our staff consists of qualified professionals who are devoted to helping you.

    • We will keep you informed at each stage throughout the transaction, and will work diligently to get the most money for your notes and receivables.

    • The requirements for converting your receivables to cash are more flexible than they are for conventional banks (banks are highly regulated and have to operate within limited parameters)

    • We work with hundreds of funding sources and investors, which gives us the ability to customize packages to meet your specific needs.

    • Our rates are competitive.

    • We can be reached by phone, fax or email.


    Simple Application Process

    Liberty Funding International will make the application process simple and smooth for you.

    The Steps involved in processing your application include:

    • Submit a simple application along with a copy of your accounts receivable aging report.
    • Within 24 hrs, we have a conference call with the funding source to see if your business can qualify
    • If yes, the funding source will do their due diligence and submt the final proposal for your review
    • After you review the proposal, agreements are finalized

    Once your account is open:

    • Fax copies of the invoices you wish to factor to the funding source
    • The funding source will verify the invoice and advance funds
    • When your customer pays the invoice in full, the funding source will remit the net funds owed to you

    Note: When you open an account with a funding source for the first time, Step 3 could take 7-10 business days.  After that, the funds are advanced to you within 24-48 hours for future invoices.


    FREE, No Obligation Consultation!
     
    Contact us at 954-261-7654
     
    E-mail: info@LibertyFundingInternational.com