Small Business Factoring

ADad asked:

Do credit default swaps exist for individual lenders or are they specific to particular bonds or loans.

Am I right in thinking that the value of these cds can influence a banks ability to secure credit.

What factors influence the price of the cds ,

For Commercial Finance Loans – Factoring Loans * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.

dagconst11 asked:


whats the best course of action at this point ,i owe approx.120k in small business loans and also a new construction home that maybe foreclosed on.the loans i signed as personnel guaranty,the home i did not. where do i go from here.
pay back my lenders

For Commercial Finance Loans – Factoring Loans * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.

Alam asked:


What is Invoice Factoring?

Invoice factoring companies provide businesses in need of instant capital with the funds necessary for them to operate. Invoice factoring is not a loan from the factoring company, instead the factoring company purchases the invoices owed or accounts eceivables from the business. The invoices are sold to the factoring company who then instantly fronts a percentage (typically 65% to 90%) of the money owed. The invoices and account receivables are sent by and paid directly to the factoring company, which then sends the company the remaining amount due, less a small fee for the transaction.

Most businesses opt for invoice factoring, as opposed to a business loan, because the funds provided through invoice factoring are easier to obtain. And since invoice factoring companies base their decision to provide funds on the credit worthiness of the company’s clients, as opposed to the company itself, no debt is added to the company.

There are several advantages to the invoice factoring method. The most important advantage from a business perspective is that there is no delay in the business’ day to day operations or cash flow. On projects that require equipment or other resources for deliverables, invoice factoring allows the work to proceed. Another major advantage to invoice factoring is that the business does not incur any liability in the loan repayment; the clients required to pay the invoices are carefully screened for creditworthiness before the factoring is approved. Therefore it is the responsibility of the factoring company to obtain the payment funds.

From a business perspective, retaining full ownership of the company and not having any future debt to repay is very important when obtaining funds from outside sources. Unlike angel investors or capital venture lenders, with invoice factoring the company does not lose any decision making abilities to the factoring company. The company also does not owe a debt after the funds have been received, as the debt still belongs to the clients that have been invoiced.

Factoring is beneficial to all parties involved. Businesses are able to maintain their cash flow, focus on day-to-day operations and scale their resources as required by the customers; customers receive timely products and services; and the factoring company receives (from the customers) the funds they allocated along with the preset Transaction fee. This win-win-win situation makes Factoring an excellent choice for both small and large businesses alike.

Thanks

Gary

Invoice Factoring Company

www.capitalplus.com



For Commercial Finance Loans – Factoring Loans * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.

jeff rauth asked:

Restaurant owners have limited options for commercial mortgages, relative to other businesses and building types.  One of the most common options is the SBA loans.  Although not perfect, they can be a viable option.  For one, they are still reliable and are still closing.  Two, they do offer some of the lowest fixed rates available and the highest level of financing for restaurant loans. 

 

Interest rates for restaurant loans are currently in the mid 6%’s to mid 7%’s depending on the particulars of the transaction.  Combine that with 85% financing on purchases AND 85% financing on refinances and it is easy to see why the SBA has had such a huge impact on American Small Businesses. 

 

Compare that to traditional bank financing, rates are about the same, but you would have to come out of pocket 30-40% of the purchase price.  Refinance financing is more limited and harder to close and loan to values are normally capped at 50-60% as well.  Again with the SBA programs you can go up to 85% loan to value on refinances on restaurant loans.   

 

The SBA programs have received a lot of criticism over the years, some of it warranted, some of it not.  One of the biggest complaints is the time frame and bureaucratic process.  A key to avoiding the long delays is to work only with PLP lenders.  If you do not your loan will have to be underwritten and approved twice, once by the funding bank and secondly by the SBA.  If you work with a PLP lender the loan will only have to be underwritten once, and you will avoid at least one month of delays.  It is common to close SBA loans in 60 days which is right in line with all commercial loans. 

 

Another major criticism is that the fees are excessive.  The SBA 7a loan normally has a 2.75% front end “SBA Guarantee Fee” and the 504 has a 2.5% fee for its half of the loan.  However it is important to realize that not all lenders and the way they structure deals are the same.  For example we work with a bank that will absorb/pays for this fee for the borrower.  So the borrower gets all of the benefits of a long term fixed rate loan with zero fees. 

 

In terms of fixed rates it depends on how the loan is structured.  With the SBA 504 you can easily get 7 to 10 year fixed rates, with 25 year amortization schedules.  With the SBA 7a most are floating, however it can be offered as a 3, 5 and though rare, 10 year fixed rates.  We are currently working with two banks that offer the 7a as a 5 year fixed loan for restaurants.   Again, as a comparison most bank financing will not exceed 3 -5 years, and the amortization schedules rarely exceed 20 years with loan to value restrictions at 50 060%.  

The SBA programs can provide a lot of flexibility compared to conventional bank financing.  Again, keep in mind that not all lenders/banks that use the SBA guarantee are the same.  So, if you have been turned down by a bank that offers SBA loans, it does not mean that you are ineligible for SBA financing, it may just mean that the actual funding bank, didn’t like your deal.   The SBA is not the lender, they are guaranteeing the loan for the funding bank in case of borrower default.  At the end of the day the bank is still on the hook for the loan and banks appetite for deals and guidelines vary widely.   And the way that banks structure the loans vary as well.  Again, for example 99% of banks offer the 7a as a floating rate, we however have access to a 5 year fixed, 7a program. 

 

 

 

 

Wade Henderson – very Professional – 15 yrs in the Business Finance Field – reputation for getting the deal done. IMMFinancial.com factoring and invoice discounting accounts receivable loans invoice factoring companies factoring of receivables factoring money government factoring account receivable factor business receivable factoring asset based factoring medical receivable factoring

Auto Source Financial asked:


When looking for car finance you will come across many offers stating No Credit, No Problem 100% Car loan Approval? This offer isn’t completely true unless the car dealer is going to carry the loan himself.

There are Car finance companies who specifically deal with people who have a poor credit history. They will be able to help you regardless of your situation, such as if you are self employed or have no credit history at all. The loan you can achieve is based only on your current capability to pay it back.

The usual period of time a loan can be stretched out for is 5 years so if you have your eye on a vehicle you will have to make sure you can afford the repayments based on this set time. Only 4 companies in Canada are specifically tailored to conduct business with people who have a poor credit rating or similar situation and for whom it would normally be difficult to acquire a loan. Whether it’s a low credit rating, self employment, or no credit rating at all they have been designed to offer you the finance you need.

Dealing directly with the Car Dealer sometimes has its pitfalls as the Car Dealer may state he is helping you, but in most account he is helping himself. No all Car Dealers understand Consumer Credit and just want to sell you a Car. Sometimes you will be told that the Car being offered to you is the only one you qualify for? This is absolutely UN true as the No Credit; Bad Credit lending institutions don’t specify the car at all. They give the Car Dealer a Payment Call based on your ability to repay the loan. This Payment call is determined on your monthly income and previous credit history.

Auto Source Financial works directly with these lenders and car dealerships to assure you get the best financing available!

You may not be able to get the car of your dreams straight away, but obtaining the car you need and building up your credit rating is one step towards it.

Once we have secured a No Credit Car loan for you, we then work with you to assure all your needs are met. At the same time our Credit Analysts will work with you to help you understand how Credit scoring works in Canada. They will show you step by step on how to repair your Credit File.

For more information about Car Leasing for New Immigrants or Foreign Students in Canada visit www.autosourcefinancial.com. Auto Source specializes in all makes leasing and Car, Truck and SUV loans for people with No Credit, Bad Credit in Canada.



Small Business Factoring * Equipment Leasing * Commercial Mortgage