Are you a small business looking for immediate cash to help your business expand?

A small personnel temp agency was in a perpetual bind for immediate cash flows. While the company paid its temps on a weekly basis, its corporate clients paid out on a monthly basis, making it difficult for the agency to meet its obligation to employees. The company also needed to buy office equipment and supplies, but was always playing ‘catch-up’ with its accounts and never had the cash on hand.

The agency turned to Account Receivable Selling and was able to obtain cash just a week after contacting their agent. The company was able to meet its payroll obligations and purchase the supplies it needed to run the business. The agency has found that by regularly utilizing Account Receivable Selling, the company is able to easily meet its obligations to employees while at the same time extending favorable payment terms to its clients.

Are you a company that regularly conducts business with government agencies?

A local landscaper was regularly hired by the local municipality. While the town was one of the company’s best clients, the municipality would routinely take two to three months to pay for services. As a result, the landscaping firm was sometimes unable to bid for other jobs and often had difficulty paying its employees.

The landscaper called a Funding Agent, who analyzed the creditworthiness of the municipality and found a buyer for the company’s accounts receivable. By selling Account Receivables, the landscaping firm was able to avoid the cash flow problems caused by customers with long payment cycles and confidently bid on new business contracts.

Are you a health care provider that routinely waits months for payment from insurance companies?

A successful, local medical practice was carrying an average of $100,000 in receivables at any given time. While many of the practice’s patients paid their bills immediately, those services covered by HMOs, Medicare and Medicaid would regularly take 60 days or more to process. As a result, the practice was providing “interest-free financing” to these organizations and was unable to adequately invest in its own growth.

The medical practice turned to Account Receivable Selling and received its first check just two weeks after contacting their Funding Agent. The practice was able to expand its office space and to purchase much needed medical equipment with subsequent checks from the sale of its receivables.

Are you a holder of a business note who would prefer a lump sum payment today, rather than waiting for years of intermediate payments?

An internet start-up was ready to launch a new website. However, the new company didn’t yet have any receivables and would not qualify for a conventional bank loan. The firm’s owner did hold a business note from a previous venture, but the note was payable monthly over a 5-year period.

The company contacted a business note broker who quickly got in touch with qualified investors eager to purchase the firm’s business note. The business note broker used her vast knowledge of the industry to get the most for the company’s note allowing the firm to make all the necessary investments in its new enterprise.

Are you a subcontractor who is unable to bid on new jobs while waiting for payment from existing customers?

A mid-size contractor landed a contract to build the new bank in town. In order to begin construction, the company needed to immediately purchase $50,000 in materials as well as have $70,000 on hand for labor costs. The company didn’t have the necessary capital on hand and was afraid of losing the contract. The firm did have $160,000 in accounts receivable from two prior jobs, but those payments weren’t due for another month.

The contractor decided to enlist the services of a Funding Agent to obtain the necessary funds. The factor asked for information about the company’s customers, decided they were credit worthy, and advanced the contractor the required funds. Account Receivable Selling allowed the contractor to obtain the necessary capital to initiate construction on the bank.

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inquiries@dgnfunding.com