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2013 Asset Based Lending | Inventory Finance + Accounts Receivable Finance

When you a combine a high advance rate on A/R (85%-90%) with an aggressive advance rate on inventory (65%) the results are the ideal line of credit for maximizing our client’s access to growth capital.

65% inventory advances for our clients along with a high advance rate on A/R (85%-90%)

Let’s delve into the basics of asset-based lending. Asset-based lenders, as the name suggests, make loans based on assets, usually inventory and accounts receivable. You are sticking the revenue that you are going to make in the future out there, and putting it at risk, to get some access to quick cash.

Asset-based lenders will give you their funds in correspondence with an agreed percentage amount of the value of the secured assets. Asset-based loans are sometimes called secured loans, because they are secured by collateral. The percentage of the value is usually between 70-80% of the receivables that are eligible and 50% of the finished inventory that is eligible.

How do you get asset-based loans though? The number of financial service businesses that give asset-backed loans is significant. There are a number of banks and independent financial businesses that offer it.

For a little business, the solution is to locate the lending companies that are fine with giving credit lines to smaller companies. This can be a little difficult, and it could involve a lot of questioning on your part. Asset-based lenders usually want to make bigger loans because the price of upkeep of an asset-based loan is going to be the same – whether the loan is small or big.

Still, getting any kind of asset-based loan ought to be pretty simple if your business has sound financial statements, great reporting programs, frequently transacted inventory, and, furthermore, clients who have a great history of paying bills on time.

To get an asset-based loan, you are going to need to have a lot of financial information that is accurate and detailed. The most important thing is to get the lender feeling good with a real case for long-term viability, as well as some financial statements that are professionally-prepared that will show proof that you have a great grip on the business.

What is the advantage of an asset-based loan? Asset-based loans can be a vital capital source for companies that are growing really quickly. Companies that are leveraged highly, in the middle of a turnaround, or have too little capital, can all benefit from asset-based loans. Sometimes, a company just needs a cash infusion to handle a financial problem, or something that would cause it to stall out and quit.

What is the disadvantage of an asset-based loan? The possibilities of getting a line of credit are just as good as the receivables quality that your company has. Commercial lenders will at your clients to pick the ones that pay in under two months or have a great credit rating. They may not look as sales to small businesses or individuals as receivables that are eligible.

Asset-based loans can also cost more than classic loans. Interest rates will fluctuate widely, and banks will often include further due diligence and “audit” fees to the final cost of the loan. Bigger banks may also necessitate that you make a personal promise, as well as the assumption of more banking relationships.

Thinking about asset-based loans for your company? Click Here

2013 unsecured business loan | We offer fast unsecure business loans

Starting a small business requires a lot of, and it takes entrepreneurial spirit, gusto, courage, and knowledge of the market that you’re entering too. However, most of all, it just needs a financial commitment from the small business owner. It’s hard to come up with that financial bankroll sometimes, and that’s where an unsecured business loan comes in.

If you have everything in place, then your chances of surviving with your startup business dramatically go up. Almost no business would be able to survive without the right financing at the right time, and that’s where an unsecured business loan comes into place. This might be the only option for a small business owner without a lot of resources to help him out, and they’re sometimes based on the small business owner’s credit history, but they’re not based on collateral usually. They can be based on collateral, but, most of the time, the small business owner is not going to have that kind of collateral on hand. That’s why it’s imperative to look into a small business loan if you want to grow your business.

Small businesses, especially new small businesses, will many times come up against a lot of resistance when they are trying to apply for loans. It can be all the more frustrating for small businesses because they’re just trying to get that crucial capital needed to finance and expand their business. If they don’t get the money, they can sometimes run into roadblocks in drawing in new customers and keeping up with the maintenance and flow of their business. This can even lead to the business crumbling. That is why it is so important that small businesses have easy access to the capital they need while they are in the building and growth phase.

A lot of small businesses are set up and taken down in the same year, and it makes a lot of lenders not want to give money to these new, budding businesses. These businesses are considered high-risk, and they can be a danger for the lender to take on. A good way around this issue to get unsecured business loans. This kind of loan is based on your credit score. When you go to get an unsecured loan, you won’t be required to put up any kind of asset to make sure you can secure the loan through collateral. Lenders will give these kinds of loans based on the general possibility to pay back the loan as soon as possible.

If you have to deal with an emergency situation relating to your small business, this kind of loan can be an ideal one. If you need to get your loan approved expeditiously, then it’s a smart idea to shop around for good business loans, and to pick from a company that lists a network of several hundred lenders because you want to get the best interest terms and rates. It is imperative that you choose from a network like this, or you might have to go with your bank, or whatever financial institution is the closest to you.

Need an unsecured business loan for your business? Click Here

Canada lines of credit for business | $50k to $10mm

Canada lines of credit for business can help your business in Canada get financed so that you can take care of the day-to-day operating costs of running your business. It’s also a great way to finance any type of project, and it can be used to supplement your business’s existing capital.

You should choose a company that has some key benefits. You need to choose a company with fast approval, competitive pricing, flexible options, and is hassle-free too. You have to choose a company that has fast approval so that at the moment they receive your finished application and additional documentation, you will receive a credit decision by the following business day.

A company should also competitive pricing so that there are competitive rates for both secured and unsecured loans and lines of credit as well. You also need to choose a company with flexible options so that you can select a fixed-rate or variable-rate loan, a variable-rate line of credit, or a mixture of the two. You can also pick an unsecured or secured option, with funds in either U.S. or Canadian dollars. It needs to also be a hassle-free loan so that when your line of credit or loan is set up, there is not a yearl renewal process needed to keep up with your current credit limit.
What can you do to tell if a Canada line of credit for business is right for you? A loan of this kind could be right for you if you possess an ownership stake in your business, if you have to borrow more than $100,000 for your business, or if you have to have money to match your daily operating needs, buy equipment, or support seasonal cash flows.

You could even qualify for a much lower interest rate on your small business loan if you secure it with a principle residence, cash equivalent, hypothetical, or cash itself. There is a fee that might be incurred monthly for the line of credit administration, and there might be an annual review and a setup fee, based on the complete credit limit.

If your business is struggling in Canada, it might be time to get a line of credit to help open up that possibility for working capital so that you can pay staff or expand your business again. It is imperative that you get the line of credit with a reputable company so that you don’t get caught in a bunch of fees and traps that are sometimes set up by unscrupulous companies that want to charge you all sorts of fees or set you up in various schemes to ultimately rob your money.

If you need to expand your business, the only thing that might work is your line of credit that you would get from a reputable company in your country. Don’t worry about taking on a line of credit because it’s something that numerous small businesses do to help them stay afloat, and even a lot of big businesses do it too.

Need a line of credit for your Canadian business? Click here

What You Need to Know About Factoring Invoices Glossary Invoice Discounting

There are a lot of terms to understand when it comes to factoring invoices. You might have to understand the differences of factoring accounts receivables from invoice discounting (both are similar but they do have slight differences). You might have to know the different terms and agreements that factoring companies use when dealing with businesses and their clients. In all of this confusion a glossary of basic terms could be very useful. Take the time to consider the following factoring invoices glossary invoice discounting list:

Common Glossary Terms

Accounts receivables – this is your invoice or the sales ledger that encompasses all of your profits from the client
Assignment – this is the official transfer of collection rights to the factor, enabling them to receive the payments (the accounts receivables)
Facility limit – this is the maximum amount that can be factored for a single company. Some factors will set a limit on how many accounts receivables can be bought and sold
Minimum term – this is the minimum contract period; many factors will require that your contract period with your client is good for at least six months
Non-recourse factoring – in this agreement you are 100% insured of debt responsibilities, protecting you from bad debts
Recourse factoring – you are not protected from bad debts and thus collecting the due amount now falls under your shoulders
Sales ledger – the structure that will encompass all details regarding sales invoices
Service charge – this is the processing fee that is required for the factor to assess the invoice and the client’s credit history

Understanding Factoring Invoices from Invoice Discounting

Another factor that a factoring invoices glossary invoice discounting glossary should contain is the difference between factoring invoices and invoice discounting. They are both very much the same since they are all about selling accounts receivables to a factoring company but the main differences lies on control over your ledgers and the visibility of the factor.

When you go for regular factoring the client you work with will be aware of the factor. This is because the factoring company will now be in charge of your sales ledger and will be the ones handling all transactions. They give you the amount indicated in your invoices (albeit at a discount) and will be the ones to collect the amount from your client later on. This means the payment from the client will never even pass through your bank account – they go directly to the factor.

Invoice discounting can seem a little bit more attractive because in this type of factoring the factor is not visible. The client has no clue that you are working with a factor. This means you have full control over your ledger and all of your accounts. It also means that you are now responsible for collecting the amount from the client and then paying the factor for the advanced cash as according to your agreement.

There are a lot of different data that you need to comprehend before finalizing a deal with a factoring firm. This is crucial information that you will learn when you have a reliable factoring invoices glossary invoice discounting guide.

Check out our Factoring Glossary here

Fast Purchase order financing | We offer Purchase order finance solutions

Fast purchase order finance solutions — Purchase order finance programs are perfect for companies where the growth is in excess of the working capital available, or where seasonal sales spikes put a damper on cash flow, or where funding from the sources you’ve traditionally gotten it from is not available.

Several companies offer purchase order finance. It’s a natural part of doing business. There are a lot of companies that fill the role. It’s a potent financial tool.

For example, a supplier might want you to pay COD, and your customer might not be able to pay you for another one to two months. Simultaneously, shipping, packaging, and labor costs have to bet met. Purchase order finance services exist to make those deals not just available, but profitable as well.

You might have a confirmed order from a creditworthy customer, but you might not have the cash to fulfill it. That’s where a purchase order finance company comes into place. With purchase order finance, a company can send an advance of to 80% of the total buying cost to the supplier. They either pay the supplier, or they open up a credit line. You send the goods, and they send the invoice to the customer. They grab the invoice payment from the client, and pay the balance between the money paid to your supplier and the order value to you. They subtract any cost or fees of cash used, after the payment comes in.

Purchase order financing lets companies have a short-term solution for funding the inventory necessary to end sales transactions.

Purchase order finance programs are perfect for companies where the growth is in excess of the working capital available, or where seasonal sales spikes put a damper on cash flow, or where funding from the sources you’ve traditionally gotten it from is not available.

Targeted purchase order financing can help with a number of things like funding 100% of the inventory cost, solving cash flow problems, finding alternatives to risky advances, and obtaining transactional credit lines from $500,000 to $50,000,000, or greater.

Purchase order finance solutions are available to a number of different kinds of companies like manufacturers, assemblers, distributors, and importers. If you’re mulling over between different companies, try to choose one with a strong track record, work with companies who have requisite experience in a number of different industries and over a long period of time, and choose a company that knows your niche specialty best.

Purchase order finance companies that have provided financing to companies in a number of industries are going to be your best bet. If you’re not quite sure about companies to go with, choose the companies that are going to offer you the best chances of a sure deal with a bunch of experience in purchase order financing. That’s the only real way you can be sure that you’re going to be working with a company that truly knows what they’re doing. Check for a company with at least ten years of experience so you can be sure to get the security of financing that comes with a trustworthy, reliable company. If you’re unsure about the prospects of the company you’ve chosen, then investigate their rating with the BBB or third-party review companies. A lot of these companies are so big that they’re not going to have ratings on the BBB so look into B2B rating guides online instead.

Need Fast Purchase order financing? Click Here

Canada invoice factoring – We offer fast Canada invoice factoring

There are a number of companies in Canada that do invoice factoring. Oftentimes, the same company will service multiple areas like Manitoba, Saskatchewan, Newfoundland & Labrador, Prince Edward Island, New Brunswick, Nova Scotia, Quebec, and Ontario. Eastern and Central Canada comprise the previous cities. Some companies also service the major cities of Quebec City, Ottawa, Winnipeg, Montreal, and Toronto.
Most of these companies won’t just do invoice factoring though. They’ll have related services like payroll funding, business loans, business financing, freight factoring, accounts receivable factoring, and, of course, invoice factoring. Cash flow solutions to businesses are an important part of keeping business running smoothly, and Canada invoice factoring businesses go a long way in making that happen.
Canadian companies understand that financing business growth can be a big challenge. Established and newly developing businesses alike can use cash flow support while they’re going through tough times, or while they’re trying to finance the growth of their business. Some businesses just might need more capital because of increase sales, and the resultant growth that is required. These kinds of businesses are going to get very favorable deals because they’re not necessarily cash-strapped, but the money is just forcing needed expansion, or perhaps the expansion will guarantee even more sales. Business invoice factoring is a normal and healthy part of business in Canada.

There’s no need to borrow money from a bank when you use Canada invoice factoring companies to assist your business in getting the job done. Some Canadian invoice factoring companies will only provide assistance to certain kinds of companies, like staffing companies, manufacturers, distributors, and transportation companies. Check the company you’re looking into, and see if your industry or market is included on the list of allowable companies that can receive financing.

What is accounts receivable financing anyway? What kinds of services are these Canadian companies actually providing? Is it limited to Canada? Business invoice factoring is a normal part of international business, and it’s seen in nearly every country and every industry. It used by businesses to convert the sales that were based on credit terms to immediate cash flow. It’s the preferred financial method to get capital for the majority of Canadian businesses. It’s an extremely popular financial practice in Canada, in other words, and you shouldn’t feel wrong or bad about taking advantage of that for your company.

A lot of these companies are highly flexible. Their financing programs can help companies that have uneven or seasonal sales patterns or start-up companies without any kind of financial foundation to rely upon. Any business can get receivables financing if it makes enough sales on terms of open credit to customers who have financial strength to pay the invoices. You are going to have a lot of help with getting immediate cash flow for your company if it is generating enough sales. Canada invoice factoring could be just the thing for your company if it’s going through a tough time and needs some immediate cash flow to move forward.

Need invoice factoring in Canada? Click here

Purchasing order financing – We offer fast Purchasing order financing

Purchasing order financing can help drive your business forward. You might need some working capital right now for the purchase orders you have. There are a broad selection of options in purchase order financing if you go with the right companies. U.S. companies that have a proven track record in their industry stand the best chance of getting loans. The expertise areas might include work in process production and letters of credit for things like trade financing.

A lot of times, purchase order financing will work together with accounts receivable financing sources to make a total business solution to transform the purchase orders into receivables. Purchase order financing should just be seen as a short-term solution though. It should be used to finance the manufacture or purchase of certain goods that have already been sold by the client to a customer that is credit-worthy. THe funding will deal with sending out letters of credit or offering funding theta lets clients secure the inventory they have to have to meet their pending order requirements.

These financing programs can be easily facilitated to help move your sales growth forward. More uniquely, a purchase order finance program can help fund the sales transactions that meet 100% of the capital requirements. In the most common instance, these kinds of transactions begin in the form of a sales order from a customer you have for unique goods. You might have several reasons for getting a purchase order financing program set up for you or your business.

Your sales growth might be far exceeding the available working capital you have, or the credit lines from the bank. Your seasonal sales pikes or spurts in your growth might put an immediate strain on your cash flow. Your working has to be preserved for other operations like capital, manufacturing, or R&D. Whatever the case, you probably have your reasons for getting purchase order financing.

Purchase order financing is often for companies that have a very healthy stream of very eligible customers that are ordering their products. Once all these product orders come through, and the company that is considering doing the lending can see the steady trail of purchase orders, they are going to be more likely to lend to the company, and they are going to give better rates of interest probably.

There are other methods of financing that may be offered by the kinds of company you’re working with. If you’re a small company, and you’re thinking of expanding, you will generally have a range of options when you’re working with a company that is going to be doing some lending to you. You will have several more choices available to you besides purchase order financing. That’s just one particularly good way of doing it.

Purchase order financing is one of the best ways that your company can secure fast capital if it’s in a tight spot. As long as your company has several thousand orders coming through, it is going to be likely that it will receive some kind of purchase order financing.

Need Fast Purchasing order financing? Click Here to get started.

Medical factoring – We offer Fast Medical Factoring

Medical factoring is also called healthcare factoring. It’s a kind of factoring. If you run a personal or medical business that is just starting out, you are probably going to run into some cash flow problems. Every organization ever that has expanded has faced the real possibility of cash flow problems, if they didn’t start out with a ton of investment capital.

When companies are faced with difficulties with their cash flow, a lot of medical offices will attempt to get a loan for their company, or a line of credit. Even though business loans can perform well, they are not a cure for business ills. For beginners, they are hard to get. More critically though, there are sometimes maximums with them. This means that you could outgrow loan if your business is expanding at a rapid rate. That is a very crucial point because once you have outgrown a loan, it can be really hard to get a new loan.

Another alternative could be healthcare factoring. Healthcare factoring is basically a type of financing tool used to bolster healthcare offices. It can cut off 60 to 90 days that are usually required to get the claims paid, and it can accelerate the payment time to two to seven days. This can be a great benefit if loans that are slow-paying have put your business at risk of a missed payroll, missing payments of bills or even rent, hiring difficulties or delays in hiring, the funds needed to meet the payroll, and the funds needed to pay the vendors and the rent.

Medical accounts receivable financing are basically medical asset based loans or lines of credit that are not as expensive as factoring medical receivables. The company will be borrowing against a healthcare receivables pool based on the final realized value for the third parties billing.

Doctors, clinics, healthcare businesses, and healthcare offices should discriminate wisely and choose the kind of medical factoring entities that are going to give them the best deals. Healthcare providers face a lot of challenges in the economy of today. Asset based lending companies help bridge the gap between the instant you perform health services for your patients and when you collect.

Healthcare providers like durable medical equipment providers, radiology centers, and home healthcare centers are just a few of the entities eligible to get healthcare factoring loans. There are a number of other places that can get medical factoring cash too, like nursing homes, hospitals, rehab medical centers, physical therapy companies, and group practice physicians.

There are a lot of companies that understand that medical receivables are your greatest asset to help fund the growth of your business and help out with your cash flow requirements. You should be able to get the best potential terms the industry can offer you.

Private medical clinics, big rehab centers, and private doctors alike sometimes have cash flow problems and need the kind of cash infusion that medical factoring can provide.

Need Fast Medical Factoring ? Click here for more information

Factoring – sell the receivable

Factoring is a great way that businesses can get a lot more money than the banks can give to them. Factoring is a kind of financial transaction where a business will sell its invoices to another party, and this party is referred to as a factor, and the factor becomes a verb, as in factoring, to help explain it. It’s a term that sums up one way of businesses getting cash for their unpaid invoices. It’s a way of doing a cash infusion for some businesses when cash is available no other way.

In factoring, the three parties that are involved directly are the entity who sells the receivable, the account debtor, and the factor. The receivable is basically a financial asset, and it’s connected to the liability of the debtor to pay. The seller will sell one, or even more, of his invoices, which are also called receivables, at some kind of a discount to another party.

The receivable sale basically transfers ownership of the receivables to the factor, and it indicates that the factor has gotten all the rights connected with the receivables too. So, the factor will nab the right to get the payments offered by the debtor for the amount of the invoice, and, in factoring that is of the nonrecourse kind, will have to deal with all the loss if the debtor doesn’t pay the invoke completely because of his or her inability to pay financially. Often, the debtor will be notified when the receivable is sold, and the factor will bill the debtor and then make the collections. In non-notification factoring, however, where the seller collects the accounts that are offered to the factor, as an agent of the factor, also happens.

Factoring has had a long history. It is by no means some newfangled way of doing business that has become more popular after the millennium like so many bad financial practices. It is a legitimate practice, and it has gone back several hundred years. It’s also by no means illegal or wrong. It’s a standard way of doing business. In some industries, it’s the main way of doing business.

Accounts receivable factoring is also called accounts receivable financing in some circles. It’s a quick and flexible source of funds for businesses. They just use your accounts receivable as the security for the funds that you are going to get. Some companies will even let your credit line grow in proportion to your sales cycle. Companies might fund as little as $5,000 in a month, or they might fund up to $10 million for larger companies. The loans are dependent on the flow invoices coming in, so there is probably going to be a reasonable basis for the loan, whatever amount it is.

You can check out the receivable financing rates at the company websites you are considering getting loans from. You can also check out their other qualities that they have too. It might be the only way for your company to get funds.

Asset based lending Lines of Credit

asset based lending credit lines — asset based lenders look at the collateral’s quality instead of the credit ratings. Borrowers pledge all sorts of things like equipment, inventory, and receivables.

Asset based lending is just lending that’s guaranteed by some kind of asset. If the loan is never paid back, the asset gets taken away. A mortgage is a kind of asset based lending, in a way. However, much more commonly, the terminology is used in conjunction with lending to big corporations or businesses that use assets that traditionally aren’t used in other kinds of loans. Think of it like one group giving money to another group, and if that group doesn’t pay it back, the lending group takes some of the possessions from the group they lent to.

Companies often have a lot of assets, and asset based lending takes advantage of this to make secured loans. They might loan a lot of money because they are guaranteed to get the assets of the company, if that company doesn’t pay up. These loans are often tied equipment, machinery, accounts receivable, or inventory.

This kind of lending is used most often when the company wasn’t able to get capital in the traditional way, like raising funds. They might have been unable to raise funds in the normal marketplace. They might need a big surge of immediate capital for something like debt purchasing, mergers and acquisitions, or inventory purchases.

A line of credit that is asset based is often made for the same reason that a normal line of business credit is designed, and that’s to let the company bridge the gap between the cash-flow timing and its expenses. The main timing issue focuses on what are known as accounts receivables. That is the delay between doing a transaction with a person, and getting payment for it.

Businesses can sometimes look through the different asset based lending companies according to what their lending rates, whether or not they have international A/R experts, what their inventory advance rates are, and their A+ BBB rating. It’s important to choose companies that have excellent ratings across the board, in all areas, because there’s not reason not to with so many choices out there. Basically, it comes down to the rate of capital at the interest rate you get. Plus, an intimate knowledge of the pricing and underwriting criteria of asset based lenders also helps.

Asset based lending used to be considered the last resort when it came to getting financing for your business, but it’s now seen as more and more common for businesses that either lack the track record or credit to get the kind of financing that has been seen as traditional.

In general, asset based lenders look at the collateral’s quality instead of the credit ratings. Borrowers pledge all sorts of things like equipment, inventory, and receivables. Banks are often constrained in giving this kind of lending.

Banks not ever accept transactions that have higher debt-to-worth rations than five to one. Asset based lending companies that are not banks or who are separate entities don’t have to deal with constraints like that.

Interested in obtaining an Asset based lending Lines of Credit? Click here