Factoring FAQs Asked Questions} October 11, 2009
Posted by janey in : business loans , comments closedHello, this is Phyllis Rector and I represent the IFG. I hope you liked the story in my last video to tell you a little about how we help the specific business owner. This time, this piece is about the question-and-answer segment that my pal Wynn and I did - so we can further shed light on some inquiries that you might have about our services.
Tell us how quickly would I receive funding?
Well, actually at the Interface Financial Group, we pride ourselves on how promptly we can fund business. So, I know on the website it reflects, funding in 24 hours. Realistically, the planets have to align first for funding to happen in 24 hours because sometimes what happens is you send in your financials and of course we are going to have inquiries on your financials, and then you have to do a little bit more digging. So, typically, I have to have to say that funding probably is going to take 48 hours. Sometimes, there are glitches that you need to overcome: the authorized signatory, for example, isn’t available. Therefore, that takes some time. And in construction, I have to be honest, it’s going to take a little bit longer since the procedure is more complex.
Is it okay to sell just one invoice?
Yes. You may sell just one invoice. Okay. We have no minimums, no maximums, no time commitments. We’d obviously like you to sell more invoices because you know we have the overhead of getting you set up but you can sell just one invoice.
Can I choose the invoice that I want to sell?
Of course you can - and we strongly encourage you to sell those that are going to pay more quickly as this allows you to minimize costs. But, you can choose whatever invoices that you want to sell, the ones your cash flow needs the best.
How much is the amount that you’ll advance?
Well, how much we’ll advance on any one invoice is dependent on the industry that you’re in. Normally, we advance 90% on any one invoice in all industries, with the exemption of construction. We only advance 80% on invoices for construction because we know that in this industry, payment takes longer. But, you do not have to take a full 90 or a full 80 percent advance all at once.Remember, however, that you don’t have to take the full 80 or 90% advance at one setting. We can fund you partiay, 20% this week and another 50% 2 weeks from now. We are flexible enough to address your every cash flow need.
How much can I get from my receivables?
Let’s refer to the 90% advance as an example. We buy up to 60% of your current outstanding invoices at 90% advance on any one invoice. This means that your invoices will be under a 30-to-45-day term and with this, you could gain about 55%. In the construction business, this is how it operates: 80% advance, 60% of your current outstanding invoices, we will purchase, and term is 60 days. But as with any rule, there’s an exemption here. We cannot purchase 60% of your invoices if 90% of your enterprise is with one customer only - this is simply because there’s no recourse here.
What is “recourse?”
Recourse is like a personal guarantee, as required by the banks. So, if your customer doesn’t pay and this could be because a dispute arose on work that you have done you know after he signed on a notification of sale or you know heaven forbid, that it could be that he goes into bankruptcy, we require you to either pay off that invoice or substitute the invoice from a different customer. So, if 90% is with one customer, there’s nothing to substitute.
Phyllis, how much will it cost?
That’s a very good inquiry - I remember you actually chuckling on the phone when I mentioned it is costly. Well, the quotation I mentioned was customized for your specific situation. Perhaps the more essential thing here is the fact that our service is so flexible - and you can always not take the advance in full if it’s too heavy for you. You forward to us invoices that your cash flow needs. This way, you control the charges related to factoring - of course, there is no price for the peace of mind brought about by knowing that you can make payroll. What’s the price of being able to take on new work and grow out of this recession? And what is the price of being able to carry out a contract when you have taken it on?
Hopefully, this is able to answer at least some of your questions. For more inquiries, do give me a call - and I will be more than happy to get back to you.
Additional Business Loans Facts Part II October 10, 2009
Posted by janey in : business loans , comments closedHow do I obtain creditor information on my Dun and Bradstreet Report if D&B will not provide it?
It was found out that some business entities have problems in getting the names of creditors who have reported them as being delinquent. D&B often gives misleading and/or inaccurate information to business owners regarding information on their business credit file and refuses to release the sources of such information. But we are able to successfully gather these pieces of information for business entities and help improve their reports just because we have exclusive knowledge of the D&B system and credit laws. This is indeed truly beneficial for you - and on your business loans applications.
Why must I incorporate or form an LLC?
There are plenty of advantages in incorporating or forming an LLC. This is specifically true in reference to building business credit history under a separate business entity. Sole proprietors who request for financing under their own name will find the history of the loan on their personal credit, and lowered FICO scores and loss of credit due to increased debt. In addition, sole proprietors will not have asset protection and tax advantages such as those offered by a corporation or an LLC, as they are one and the same as their business. Please contact the office for more information regarding this matter.
Is a Dun and Bradstreet (D&B) report required in having a business loan approved?
Yes!, Because of the US Patriot Act and “post 9-11″ legislation to avoid illegal business activity, terrorism, loan fraud and money laundering, lenders are now required to verify information on the business entity and principals applying for financing. Don’t fret if you do not have this nor a DUNS number, however; we can always be of assistance to you so as to put you in the best possible position for financing - unlike D&B. D&B is simply responsible for gathering information on companies that they sell to banks as well as other subscribers. It is simply not in their best interest to see you get financing and it takes expert assistance to get a high quality report before loan applications are submitted. To repeat, a loan application without a DUNS report has very high chances of being declined by any lender. As always, the business loan experts at GFS Business stand ready to assist you in securing business financing.
