A franchise-factoring company provides funding to small and medium-sized clients. Factoring is the funding of B2B accounts receivables. It’s a finance business similiar to banking where clients are provided with cash, based on credit worthy receivables verified with the clients’ customers.
If your clients are selling products or services to their customers and offering terms of 30 days, or even longer, as a factoring franchisee, you can provide immediate financing and ease the capital crunch.
Theses are some of the financing solutions provided to clients as per Franchisor:
1. Accounts Receivable Financing
Typically referred at as “factoring”, AR Financing is neither equity nor debt, yet strengthens a balance sheet – and control of the business always stays with the owner. It is a trusted and effective method of both financing short-term cash-flow and outsourcing the administration of credit and the task of arduous collections.
Factoring is a time-honored financing solution that offers many advantages while allowing business owners to focus on operating and building their client base. As opposed to banks, for instance, flexible underwriting is offered. We don’t require the lengthy process, personal credit score, business history and restrictive covenants necessary for traditional debt.
We support start-ups and high growth businesses, as well as businesses recovering from financial difficulties. Our ability to fund and service your business can keep up with the demands of growth without having to re-qualify you for a larger loan and charge any subsequent fees.
Your balance sheet remains strong, most importantly. Because we actually purchase the invoice from you and do not take an equity position, you incur no debt and keep control of your own business.
Additionally, we provide a thorough credit analysis on all potential and existing customers so that you can make an informed decision on extending credit, thereby minimizing the risk of bad debt.
2. Purchase Order Financing
Purchase Order Financing is the perfect solution for short-term funding requirements. It can be used to finance the purchase or the manufacturing of specific goods that have already been sold. We enable this process by issuing letters of credit or providing funds that allow our clients to secure the inventory they need to fill their open sales orders.
Through purchase order financing, we also support both domestic and international transactions, and clients enjoy the working capital needed to grow sales and take advantage of profitable opportunities that are larger than they can otherwise support. We are not a bank and are not bound by the restrictions necessary for traditional lending products. Our focus is the underlying transaction and its economic and commercial viability.
Purchase Order Financing is used by manufacturers, distributors, importers and exporters. It can be used for payments to third-party suppliers for goods, issuing Letters of Credit, and for making payments for direct labor, raw materials and other directly related expenses.
Our clients consider Purchase Order Financing if they lack either sufficient capital or international expertise to complete their transaction. With respect to the latter, they might prefer to reduce foreign risk and in some cases protect the identity of their manufacturer from the end customer. In all cases, however, they appreciate the speed of funding, preservation of equity and increased profits at the end of the day.
3. International Factoring
This form of financing gives business owners the ability to offer open credit terms to foreign buyers who they would normally not be able or feel comfortable selling to without a traditional deposit. Because we fund the invoice upfront and take on the risk, business owners can now increase their foreign sales freely while improving their cash flow.
Foreign receivables are usually underserved assets. Domestic banks or lenders typically consider foreign receivables to be ineligible and do not feel comfortable providing capital availability against these foreign receivables. We lend against foreign receivables, giving the business owner more capital to grow the business and pay expenses.
As business owners and operators, we understand selling to international customers is a huge opportunity, but difficult to manage financially. There are certainly common issues to deal with and we offer you support in this regard.
As the Franchisor, we provide most of the back-office services required, check customer’s credit, do all the collections and will fund our Principals up to six times their committed capital!
This is a home-based opportunity with no employees, no inventory, ideal for a professional looking to replace six-figure income. If you are an experience business executive or professional person looking for a successful career where your past business accruement and networking skills can be used to build a high income business go here and look in the Financial Related, Factoring Company category.