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Grow Your Business
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Cash to Grow Your Business · Factoring to
Grow Your Business * * * * * * * * * |
1.
The
new cash flow program you’ve never heard of. If you qualify, you’ll love it. 2.
Everything you need to know about using your accounts
receivable to improve your cash flow. 3.
Equipment leasing to manage cash flow. 4.
Use equipment leasing so your customers can buy more. 5.
Offer consumer financing to create more customers
for home improvements. Your vendor, supplier, temp agency or subcontractor
sends you a bill. They’d
like to get paid on Day 1.
They’d like it so much, they probably offer a discount for quick
payment. You’d like to use
the cash for your business, so you’d rather pay 30-45-60 days
later. So, you pay later and don’t
get the discount. Suppose you had someone else pay on Day 1, and you
paid that source the billed amount later. It wouldn’t cost you anything,
except the early pay discount you never take advantage of, anyway. What would happen? If you’re a General
Contractor, the best subs will line up to take care of you when you need
them. If you’re manufacturer
or a retailer, your vendors will make sure you get what you need when
you need it. You get the
picture. Whoever you are, your
credit report will now say that you always pay on Day 1. Will that help next time you need to
finance a building or equipment? You bet it will! This program costs you nothing. There is no downside. The funder makes its money by using the discount
you weren’t using. They
will negotiate with any vendor that isn’t already offering a
discount. They rarely get turned
down. The vendors love it! To qualify, you need to be paying your supplier and
vendors (not employees, taxes, rent or mortgage, etc.) about
$50,000/month. One of the
largest, best-known retailers in the USA is in this program, but another big
name is doing more at $50,000,000/month.
Assume that there is no upper limit. (Are you listening, Wal-Mart?) Quick summary 1.
You have
vendors who want to be paid now. You want to pay them in 30, even 60
days. I'd like to introduce you to a solution that will you and them
happy. 2.
It costs you
nothing. Really. You might even save some A/P processing. 3.
You nominate
vendors for us to talk to. 4.
We tell the
vendor they have a choice of continuing to wait 60 days (or however long your
actual delay is) for you to pay them or to have us pay them as soon as you
approve the invoice. 5.
We ask each
interested vendor what it would be worth to them to get paid that
quickly. Vendors usually offer 2-5%. We reach an agreement with
each to give us a prompt payment discount. (If they are currently
factoring your invoices, this program is cheaper and easier than factoring.) 6.
We pay them
immediately, minus the discount. You pay us the full invoice at the agreed
time, e.g., 45 or 60 days. The benefits to you are even better relations with
your vendors than you have now. If they know they always get paid
immediately, they will work even harder to meet your needs. In
addition, your D&B will show that you consistently pay quickly.
That has to help when you need to go to the bank. If you are factoring, and you have a client who
should be using this program, let us know. We’ll make it worth your while! Happy vendors. Free float. No downside. No upper limit. You can lease almost any equipment that you
don’t want to put on a credit card. You negotiate your best deal with your
source, and then the leasing company buys it and leases it to you. Depending on the product and the
price, the lease can run as much as 7 years. Your initial payment can be as little
as the first and last month’s rent. Your lease can be set up for you to
buy the object at the end for your choice of actual value, 10% of the initial
value, or $1. There are tax
considerations in the choice, but with the right choice you can treat the
payments as expenses and not worry about depreciation. Equipment
Leasing for your Customers If you sell equipment, you can offer your customers
all the benefits above of leasing as a form of financing. You can even put your name on the
forms instead of the leasing company’s. Yes, software can be leased. If you
offer non-business services such as home improvements, your clients may be
creditworthy but not want to use credit cards or write a check. We can make it easy for you to offer a
financing contract (with your name on it) that you are assured of being able
to sell to get your money immediately. International commerce can be assisted with international
factoring, letters of credit, and other mechanisms. Since options vary by country and
industry, please discuss your needs with us, so we can find a good solution
for you. Our funders can finance
products to and from the US and between other countries for a US-based
client. Some of our commercial real estate lenders lend in other countries,
and some will finance very large projects. We
have your cash flow solution. |
