Instant Cash Flow

Instant Cash for your Invoices and Credit Card Receviables

If you are like most business owners, you probably have to wait for 30-90 days for your credit card receivables and to get paid on your invoices and still have to make timely payroll, rent, credit card and other payments. With constant cash flow problems, it’s hard to keep your business afloat, not to mention expanding it to create profits.  

Most business fail because of cash flow problems. In today’s economy, it's very difficult to get a traditional business loan. A typical business loan requires lots of paperwork, collateral, personal guarantee, a high credit score, and the use of funds you receive is often limited. The process may take from 3 weeks to 2 months and the approval rates are vey low.  

In sharp contrast, credit card receivables and invoice factoring is an easy streamlined program allowing you to receive, for a small discount, a large portion of your receivable up front. All you have to do is fill out a one- page application:

	no tax returns
	no business plans
	no UCC filing
	no collateral
	bad credit OK!

If you have outstanding Visa or Master credit card receivables, you can get unsecured accounts receivable factoring of $10,000 upto $500,000.  Use accoutns receivable factoring to create positive cash flow.     

• 	quick approval
  	no monthly payments
  	minimal credit requirements
  	free credit analysis
  	flexible payment schedule
  	flexible repayment schedules
  	high approval rates
  	no added debt to your balance sheet

  
  In essence, credit card receivables and invoice factoring converts your invoice terms to COD (cash-on-delivery). Instead of waiting 30 to 90 days, you receive a substantial portion of your receivable up front so you can re-invest your cash and double the revenue.  

It takes money to make money. With credit card receivables and invoice factoring you can: 

• 	compete with better funded competitors
  	offer better credit terms
  	stabilize cash flow
  	meet your payroll expenses
  	pay off debt
  	increase your company's credit score
  	fill orders fast
  	re-invest and DOUBLE your revenue

Positive cash flow helps rapidly and exponentially grow your small business - your profits will increase, not decrease, despite the discount you pay to the factoring company – the factor. Here is how it works. Let’s say you make a 20% profit on your current investment. Credit card and invoice factoring allow you to double your investment thereby doubling the profit. So if your net profit is $100,000 a year, you can increase it to $200,000 AND resolve your cash flow problems.  

In contrast, let’s say you borrow $100,000 from the bank at a 12% APR. You will be making monthly payments of $1,000.00 and at the end of the year will have paid $12,000. With small business factoring, your fees would be around 5% a month but you would receive a $100,000.00 every month so that at the end of the year your fees would be $60,000.00 but you would have received $1,200,000 ($100.000 x 12 months).  When you re-invest the money you received from small business factoring, your profits will sky-rocket.  

All you need to establish a small business factoring account is to be a registered business, including start-ups, with accounts receivable due by credit-worthy customers. You can qualify even if you already have a loan and have a new business.  Bad credit is OK.  It is the credit worthiness of your customers that counts.

Here is how it works:  the factor redirects payment on your letterhead from your address to their P.O. Box. Large corporations frequently request payments be sent to a separate lockbox, so your client will not have to know that you are using the services of a factoring company.   

Let’s say your company sells a $10,000 worth of credit card receivables. Within 24 hours, you will receive at least 80% of the transaction or $8,000.00 wired directly into your bank account. Your client pays the factor the full $10,000.00 and the factor immediately sends you the remaining 20% or the $2,000 minus the factoring fee. The reserve accounts are cleared daily so there are never any delays tying up your money.  

The rates and fees vary depending on industry and the amount of the factoring.

Credit card receviables and invoice factoring is one of the oldest forms of financing. It enables companies to create a positive cash flow by receiving their credit card receivables at the instant they become due thereby freeing their cash up for expansion, payroll, and all other epxenses.

A word of caution:  factoring companies vary greatly in how they conduct business and those differences can have huge impact on the speed, quality and value of services you receive. For example, some factoring companies require thorough financial information, minimums, term contracts, personal guarantees, or a lien on your receivable, all of which can significantly slow down the process, make factoring more costly and expose you to personal financial liability.

Most small business factoring companies are simply middle men selling leads. They will send your application to literally hundreds of other companies, inundating you with useless spam and introducing you to lower grade companies you may not wish to do business with. The biggest risk of applying to multiple companies is that your business may end up with a lien on your account receivable even before you receive any money, which will then make you ineligible for factoring. The way this works is that some factoring companies have inserted small print language into their applications allowing them to file a lien against your accounts receivable as soon as you sign the application, which is before they advance any money to you. This makes you ineligible for applying to any other company. The best way is to avoid companies that file liens altogether. You can obtain a merchant loan without agreeing to a lien on your accounts receivable.

You should also be aware that the cheapest rates do not translate into the best service. The factoring company you ultimately chose may at some point come in contact with your clients, especially for collection purposes, so you need to make sure that they are professional and will not alienate the clients you worked so hard to develop. Here are some key areas you need to research before you decide on a factoring company:

• 	customer service
  	collection practices
  	invoice ledgering
  	float days
  	aging and other reports

  
  

The factoring company you choose will provide actual management services to your business, including credict checks and screening, invoice and payment reporting, monthly statements for your customers and delinquent account collections. You want to make sure that you get the highest quality of those services to get your money’s worth -- some factoring companies, for example, provide ledgers that can be securely downloaded directly into your company’s bookkeeping software thus reducing your accounting costs.

CashExpress Funding, LLC. works exclusively with reputable factoring companies throughout the U.S., which allows us to meet various funding needs. Our funding partners are aggressive well-capitalized lenders who understand your industry and will work with you to help you create a positive cash flow and grow your business. Typically, you can be approved within a few days and receive a credit card receivable advance within 24 - 48 hours of approval. 

TYPES OF SMALL BUSINESS FACTORING:

 The different types of factoring including medical factoring, doctors, therapists, trucking companies, restaurants, veterinarians, morticians, chiropractors, manufacturing plants, government receivable, staffing/labor agencies, tech/communication and others require factoring companies with the experience, expertise and financial resources to meet their diversified needs and operate efficiently within their particular industry.  Contact CashExpress at 800-303-3193 for a free consultation.

OTHER FORMS OF BUSINESS LOANS

Aside from credit card receivable and invoice funding, CashExpress can arrange the following types of business loans for your business:

Asset Based Loans

The asset based loan program is available to healthcare practices and medical professionals operating their own practice. The practitioner must be licensed a minimum of 2 years but the business may be a start up. Medical practices owned and operated by non-medical professionals do not qualify for asset based loans. After approval, funds are issued directly to the medical professional for the benefit of the practice and can be repaid in up to 84 months.  

Purchase Order Funding

If your business is unable to complete a Purchase Order (P.O.) because it lacks the funds for the required materials, purchase order funding may provide capital and/or guarantees in the form of Letter Of Credit (LOC) to acquire goods or services in order to fulfill the Purchase Order. There is usually a $100,000 minimum with a fair gross margin of twenty five percent (25%) or more to our client. Purchase Order funding is available to most business with the exception of building contactors.  

Medical Factoring

Medical factoring allows healthcare providers to receive immediate cash for their billings to third-party payors (i.e. commercial insurance companies, HMO’s, Blue Cross/Blue Shield, Medicare and Medicaid).  The factors purchase the healthcare provider’s billings at a discount and collect payments from the third party payors.  To qualify for this program, the business must have average monthly billings of at least $35,000.