Asset Based Loans
How To Easily Eliminate The Problem Of Being Underfunded While Waiting 30 Or 60 Days. Feeling squeezed by having to offer your customers attractive payment terms only to find your cash flow not flowing? For Your Customers To Pay Their Invoices.
Customers of an Asset Based Loan:
Tired of playing catch up with your cash flow? Having to wait 30, 60 or even 90 days for customers’ before you are paid for delivered goods or procured services?
Feeling squeezed by having to offer your customers attractive payment terms only to find your cash flow not flowing?
Have you just been refused a line of credit, owe CRA or suppliers money or are simply overwhelmed by expenses?
Putting your business at risk by skipping credit checks on your customers? These are expensive and require expertise.
Nervous about financial stability of your customers and how their delayed payments affect your business?
These are all very real, risky situations. Whether you’re a wholesaler, importer, trucking company, temporary personnel agent or manufacturer. Cash flow and customer creditworthiness are major concerns.
With 9 out of 10 of all 2009 start ups failing, growing pains in a business can make or break a business. More importantly, 90% of the surviving 10% grow to financial maturity faster with additional financing.
There’s Always Bank Loans
Yes you could go get a bank loan, but how’s your financial situation? Will you be approved? How long will you have to wait for approval? And then how long till you actually get funded? What are the banks’ conditions for loans?
Banks always insist on up to date balance sheets, income statements, revised business plans, cash flows, four consecutive years profit, the maintenance of healthy monthly ratios, positive personal assets and liabilities AND good personal credit. Why would anyone need a bank line if all these conditions were met? From your accountant’s point of view, in procuring all the bank’s requirements, there is a lot more work (and cost) involved in securing a bank line.
So maybe bank loans aren’t for you.
So Bank Loans Aren’t Solving My Problem. What About Other Sources of Cash Injections?
Business can borrow from many sources:
1. Love money – they normally have to start with some family money or personal savings. put a negative here… But this form of money can only be used at the very early stages as it is the only way to commence existance in order to be able to bring the product to market.
2. Then Angel Finance starts. Angel Investors usually want at least 50% of the company’s equity and only accept 1 out of 1,000 applicants. This form of money can only be used at the very early stages as it is the only way to commence existance in order to be able to bring the product to market.
3. Mezzanine Finance is another form of initial funding. But this form of money can only be used at the very early stages as it is the only way to commence existance.
4. Venture capital comes a little later when the new company has progressed from the initial “Idea” stage to having made some workable widgets achieved some success and at least had a business plan and cash flow drawn up. But this form of money can only be used at the very early stages as it is the only way to commence existance.
5. Showroom Finance is specifically designed to finance unsold vehicles while they remain unsold on the showroom floor. But this form of money can only be used at the very early stages as it is the only way to commence existance.
6. Factoring commences with the delivery of goods or procurement of services when continuous liquidity is required.
7. Then equity finance and shares may be sold – thus decreasing profitability later which factoring prevents.
8. There is always the option of selling shares and taking in new monied partners or silent partners – BUT then you a left with less of your own comany as enjoy less of it growth.
Having More Cash Available Solves Many Problems
Imagine having cash flowing back into your business only days after issuing invoices, being confident offering customers generous payments terms in order to obtain contracts without having to worry about running credit checks on them?
What if you could take your accounts receivables and turn them into instant cash within a few days, eliminating the need for any credit checks, no monthly payments required and carry on business with a lot less worry and stress… and all for a nominal fee? Isn’t this all a luxury compared to banks or private investors? Now you keep 100% of the equity in your business. No wonder there is over $20 billion dollars of factoring done in Canada each year!
What could your business do with more cash?
expand your operations?
take advantage of supplier discounts to more than cover the cost of factoring?
open new locations?
hire more staff and pay them all on time?
do more research and development
become enabled to tender on major contracts
employ the best professionals (accountants, lawyers and computer systems and equipment)
wait for your SRED (Scientific Research and Experimental Development capital arrears from the government,
go after bigger clients?
become suppliers of choice to all your customers?
purchase more fixed assets?
do an IPO (Initial Public Offer) and go public
Advertise more for additional brand awareness and market penetration.
Consider an Asset Based Loan
Well there is a solution. Factoring from Money On Tap will give your company immediate freedom from the pressures of inadequate cash flow. Your direct costs and overheads are paid immediately by a factoring company and you only wait a few weeks for your profits.
With factoring, you can continue to offer competitive terms. Your business will grow exponentially, with our cash resources turning your business into a cash-on-delivery operation.
With factoring, we set high credit limits on your customers. This is a vital task in the professional credit checking procedure. There is security in knowing that you are not taking a high risk trusting your customer.
Demanding COD from your customers is the only way to conduct business while suffering from illiquidity. Factoring gives you and your customers breathing space allowing for their payment terms. You can continue to conduct business with the factor’s additional working capital.
Money On Tap acts professionally to sounding alarm bells when the factor notices any changes to your customers’ credit. By bringing any looming debt problems to your attention, we can save you money. The factor may reduce credit limits if any NSF payments are received. You can remain “the good guy” while we do all of your outside-of-court collections free of charge.
You may delegate this very important specialized task to the factor. We will use our professional expertise to collect as many overdue accounts as possible. Any seriously delinquent accounts will be handed over to lawyers for collection or claimed from insurance wherever trade insurance has been taken out.
We look after your delinquent accounts for you, so you won’t have to put undue pressure on your customers once you see them becoming overdue.
It is impossible to appear financially secure to your customers without having a factor reduce your risk, and maintain a healthy financial cash flow. With factoring you will be able to maintain a healthy bank account while watching your business grow.
Having Money On Tap responsible for your business accounts receivable, you eliminate all pressure on your customers by allowing terms thereby reducing your fear of losing their business. So your customers can now sell the goods before they have to pay you for it them.
When a factor is on board you are assured of:
Payment within 24 hours of delivery of goods or rendering of services which give you near immediate payment on your invoices.
Professional credit checks on all your clients, without having to hire any staff with credit expertise.
Ability to offer terms and thereby being able to compete on those bigger projects and accept government tenders.
Up-to-date collections with a healthy aged AR list so you’ll never have to chase your clients for payment again.
Access to take advantage of supplier discounts due to the additional working capital available thereby totally covering the cost of factoring.
Opportunity to provide your bank and larger customers like Walmart with a healthy aged receivable list.
Approval of a bank loan long before you would otherwise enjoy one knowing you can survive until then
Faster increase in sales because now you’ll have the money to do what’s you know is necessary to grow and expand.
Immediate notification to a change in your customers’ credit so you can react quickly to stabilizing your position.
Have all the necessary liquidity to run your business, hire the best staff, buy the most cost effective machinery, advertise effectively, pay professionals and take advantage of suppliers cash discounts from your suppliers…
96% of $1,000,000
(4% factoring cost for 60 days days)
Is more than 100% of $100,000
How Do I Get Started?
Email Your Request For a Quote Today!
THOUSANDS OF OTHER SUCCESSFUL BUSINESSES ARE USING THE POWER OF FACTORING TO THEIR BEST ADVANTAGE.
IS FACTORING RIGHT FOR YOU?