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262 Upper Valley Road,Suite #1
Christiana, PA 17509, USA
CONTACT NO.: 610-228-4137

Alternative Financing Solutions

When you need working capital, where do you turn? Banks? Investors? Relatives?

These days, banks aren’t the easiest places to get money. You need assets, strong cash flow, and a record of success. To make matters worse, banks prefer to loan you a very specific amount of money – then as soon as you get the cash, you have to start paying it  back.

Commonly referred to Factoring, it is defined as the purchase of an Invoice for a business to business or business to government transaction for products delivered or services rendered in the past, at a discount fee. Factoring is NOT a LOAN; it is the discounted purchase / sale of a non performing asset (accounts receivable/outstanding invoices) that is paid over time.

Before the 1980s factoring was used primarily in the garment, textile, and furniture industries – typically only available to larger companies. Factoring has since become a widely accepted financing alternative and in many cases the financing tool of choice to help companies thrive.

In today’s credit climate businesses are holding on to their cash for as long as they can. This means that suppliers to these businesses are getting “stretched out” – regarding payment. Companies that were accustomed to receiving payment on their invoices in 30 days are now faced with the reality that the payment cycle is now surpassing 60 days or more. The trickle down effect of this is tremendous.

Without the needed cash flow, companies are forced to make tough decisions. Employees are being let go (no money for payroll), supplier payments are delayed (resulting in delayed or cancelled shipments for future orders), delaying payment of operating expenses (negatively effecting the company’s credit history which will adversely affect their purchasing power), payment of taxes are delayed (resulting in judgments and tax liens). By selling some or all of their invoices a company can receive up to 90% of the total face value of an invoice creating immediate cash flow to sustain the day to day operating challenges. The remaining 10% the company would receive back once the invoice has been paid by their customer less the small discount fee that would be charged.


Purchase Order Funding

A Purchase Order is a formal agreement between a company (supplier) and a customer regarding a product being shipped on a certain time and sold at a certain price.

Purchase Order Funding is a short term financing tool that provides 100% of the cost associated in filling a purchase order from a creditworthy customer. When a business (distributors, wholesalers, resellers, new start up company) receives a purchase order for a product, the business often needs money in advance to pay the supplier for the product that has been ordered. In most cases the purchase order has to be for a finished good or product to qualify for Purchase Order Funding.

Purchase order transactions are distinct from factoring transactions in that purchase orders are simply a promise to buy goods rather than an invoice for goods already delivered.


Asset Based Lending

An Asset Based Loan is a formula based credit facility often used by companies with high financial leverage and insufficient cash flow. An asset based loan is secured by pledging the borrowers accounts receivable, inventory, machinery and equipment as collateral for the loan. Companies in the manufacturing, distribution and service industries are good candidates for an asset based line of credit.

When evaluating a potential loan an asset based lender always focuses on the ability to monitor the collateral and the strength of the collateral as the source of repayment for the loan. This is different from a “traditional” bank loan where the credit decision is based on the current financial strength of the business.


Construction Invoice Factoring

If you are a subcontractor working under contract to large general contractor, property owner or have government contracts and your creditworthy customers demand 30, 45, 60 terms of payment or longer and you grant such terms to secure the business, your own company may well experience critical cash shortages when it comes to payroll or paying your own suppliers on a timely basis. Such cash flow problems can become serious and can significantly hamper your company’s financial health and ability to grow. For many construction businesses however, such problems can easily be overcome by utilizing the power of factoring.

We provide funding for:

  • Paid when paid contracts
  • Progress billing                                                  Learn More About Construction Factoring


Medical Supplies and Services Factoring

Do you deliver medical supplies or services to doctors’ offices, hospitals, nursing homes or other healthcare providers? Are you having a hard time filling large medical supply or services orders because of poor cash flow? Would you be able to stock more medical supplies and/or increase staff for your medical supply or services company if you had more working capital?

If you answered YES to any of the above questions, then medical supplies and services invoice funding program is just what you need!

Through a process known as invoice factoring, a factor will purchase your medical supply invoices and advance cash on them immediately. Factoring the invoices for your medical supply and services company can help your business continue to grow, without compromising your present obligations to payroll and other vendor invoices, and more importantly, it won’t muddy up your balance sheet.

When a medical supplies or services company sells its invoices to a factor, the medical supply or services company receives the following:

  • Instant cash for medical supplies or services: Money can be in your account within hours of verification
  • Extreme level of flexibility: As a medical supply or services business, you have the freedom to factor when you want, how you want, whom you want and for however long you want.
  • Industry expertise in medical supply factoring: Our medical  Funding partner has spent the better part of a decade in the health care services industry, so they are acutely aware of the unique challenges faced by those who sell goods to doctors’ offices, hospitals and various other healthcare facilities.


Medical Factoring

Doctors and professionals that bill insurance, HMO’s or Medicare/Medicaid know how the payment cycle of the industry works. Basically, hurry up and wait, is the call of the day. It is not uncommon for a medical professional to send a claim to an insurance company and have to wait 30, 90 or even 120 days before they get paid. In the meantime, the office needs to pay employees and suppliers.

Medical receivables factoring can provide a much better alternative. Medical Factoring eliminates the payment delay, getting insurance claims paid in as little as 2 days. This streamlines cash, allowing the physician’s office to easily meet its obligations.

It’s simple and works like this:

1. The medical office sends claims to the insurance company

2. A copy of the claims is sent to the factoring company for financing

3. The factoring company advances up to 80% of the claims expected net collectable value and holds 20% in a reserve

4. The reserve, less the factoring fee, is released back to the medical provider after payments are received.


Supplier Credit Financing

Short term financing facility that provides 100% of the cost of the raw materials to be used in manufacturing a finished good to fulfill a firm purchase order from a creditworthy customer. This type of financing is ideal for manufacturing companies that have bank financing in place, that have outgrown the financing in place or have exhausted the money provided by the bank, and now needs more money to purchase the material to fulfill on a new order.