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Services |
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Accounts Receivable Financing /
Factoring |
Factoring is the
sale of an invoice at a discount. It is not a loan and therefore is
not a liability on your balance sheet.
Receive the
advance (up to 100%, typically 80%) within 24 hours of the
verification of the invoice. The balance of your invoice less the
discount, is rebated to you after receipt of your customers payment.
Some funding sources may take the discount out of the advance.
We cannot offer
this service on consigned goods- which are also called Contingency
sales agreements.
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Purchase Order Finance |
Purchase Order Financing is tied to the fulfillment of a
specific purchase order or contract. The idea here is that you can
take a purchase order BEFORE you have inventory to fulfill it- we
finance the
PO to pay for your
supplies in order to fulfill this order. A purchase order is the
guarantee of payment. PO financing may be used to finance working
capital for supplies, pre-ordered inventory, raw materials, and
payroll (direct and to subcontractors). International and Domestic
Letters of Credit available as well.
This type of financing will most always require that the
subsequent invoice (s) be factored.
Again, contingency sales agreements (consignments) are
incompatible with this type of financing. Some service businesses
are difficult to finance even if they have a purchase contract or
PO. |
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Equipment Lease Solutions |
Leasing the
equipment you need rather than purchasing:
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Gives you the
equipment, software, and furniture your business needs
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Does not tie up your
cash, receivables, credit cards, or bank lines
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Reduces the amount of
cash you need and may be expensed for taxes
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Type |
Definition |
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Operating Lease |
With terms from one
to seven years provide maximum flexibility. End of lease
options include purchasing the equipment for its then fair
market value, renewing the term of the lease or returning the
equipment to leasor. |
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Capital Lease |
Also with terms from
one to seven years provide fixed financing when ownership of the
equipment is desired. |
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Government Lease |
A lease transaction with any
government agency (i.e. Federal, State, County, City etc.). |
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Sale and Leaseback |
Sale of an asset for cash, with a
contract to lease the asset back from the funding source
purchasing the asset. Sales tax an issue here. |
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