COMMERCIAL FUNDING NETWORK, INC

1-800-503-1972

1-212-658-9003 fax

"independent financing for your business growth"

PO Box 9584

Niskayuna, New York 12309

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Accounts Receivable Finance:

INTRODUCTION

FINANCING

 FACTORING

GLOSSARY

 Financing your Commercial Accounts Receivable

Ask yourself: 

How could I improve my business if I could convert receivables into cash within days instead of weeks?

Would next-day payment of invoices improve my business's ability to manage growth?

Has my company missed out on some new sales or supplier discounts due to cash flow constraints?

Case Study: For years, a southeastern distribution firm was allowed 75 or more days to pay his wholesaler while his customers would send in payment within 45 days of invoice. No cash flow problem. Just when the wholesaler started requesting earlier payment, the customers started taking more time to pay.  Cash flow was squeezed. Accelerating cash directly from the invoices means the wholesaler is paid faster and valued customers can be offered extended terms.

Whether your business is providing services or selling finished goods, the cost of carrying an invoiced receivable is more than the interest expenses on your business line of credit.  It also includes missed expansion efforts like advertising and sales staff, missed cost reductions such as supplier discount opportunities and lost sales due to your inability to offer extended terms to your customer.  Better yet, with the improved cash flow of receivable financing, you may be presenting improved balance sheet ratios to your commercial banking

Case Study: Staffing companies need a steady stream of cash to meet payroll requirements to individual and withholding taxes.  The healthcare, office or installation service client may take up to 30 days to pay their invoice. This cash flow squeeze limits the staffing agencies ability to grow; if the business credit line cannot be expanded, the agency can not take on additional clients. Invoice financing helps the agency get the cash it needs to meet its payroll and withholding obligations and take on new clients.

At CFN, we consult and review with you the business cash flow requirements, the operation's history and ability to generate cash and examine where assets are tied up; raw materials, work in progress, inventory and receivables.  We then help you choose between the two plans to turn the receivables into cash:

1) Financing program for all of your invoices with next day payment   Click here for more information about financing all of your invoices.

Eligibility and approval is based on your business strength.

With receivables financing, we do not ask for proof of customer acceptance or confirmation of the invoice.

No interference with your customer relationship; payments are still made payable to you but are mailed to a lockbox address

2) Factoring program for some of your invoices Click here for more information about factoring some of your invoices.

Individual customers are underwritten for eligibility and approval; with less review of your business strength

Back-up documentation is usually required for each invoice to confirm service or product delivery is complete.

Occasional involvement of your customer; payments are mailed to a lockbox address.

Questions?  Please call us at 800-503-1972; a CFN consultant will be happy to assist you.