As a business owner, you recognize the value of your Accounts Receivable (AR). Though it represents revenue, your Accounts Receivable falls critically short of being â€œmoney in the bankâ€…Until Now!
Factoring has become one of the preferred methods to provide working capital for businesses. This service is useful when you cannot afford to wait 30, 60, or 90 days to collect payment from your customers or third party insurance company if you are a healthcare provider.
You sell your accounts receivable (invoices or insurance claims) to a specialized financial institution (Factor). The factoring company will advance you an amount less than the face value of the invoice or insurance claim, usually between 70% and 80%. When the Factor collects the full amount of the invoice or insurance claim, you will receive the rebate (Face Value minus the Advance minus the Factoring Fee). Click for FAQs.
Businesses use PO Funding as a short-term financing solution to provide 100% of their supplier cost to fill orders from their creditworthy customers. If you are a distributor or reseller of finished goods, or perform light assembly or repackaging before final shipment, sell at a minimum gross profit margin of 9%, have stretched your supplier credit limit or reached your bank borrowing capacity and need a minimum of $50,000 in financing, then PO Funding is the financial tool you need for success. With PO Funding, you can compete for large orders that are usually reserved for Fortune 500 companies.
There is a fundamental disconnect between most companies and their vendors. Once a vendor delivers their goods and/or services, they would like to be paid as quickly as possible. Conversely, most accounts payable officers like to wait as long as they can before paying invoices received from their vendors. This payment delay improves cash flowâ€¦working capital is used for multiple cycles before the inevitable pay out. With VP, we pay your vendors 1 day after receiving their approved invoices from youâ€¦we use our moneyâ€¦ at no cost to you. You then pay us on an agreed upon schedule. Click for FAQs.
Often the purchase cost of computer hardware and software, construction equipment, industrial equipment, printing equipment, vehicles and other equipment can exceed current working capital. Let us help you get the equipment your business needs – when you need it.
When your business has a need for independent cash flow and A/R analysis, call us for an expert consultation.
At MDS Funding, our goal is to provide you with cash flow solutions tailored to your specific needs.