Embed Size (px)
Citation preview
CREATIVE CASH FLOW FINANCING
TheGood News:Your hard work has paid off, and you have received business that is going to really helpgrow your company.
The Bad News:You will need to pay your employees every two weeks for at least 2-3 pay cycles beforeyou will collect the money invoiced to your customer.
The Solution:
You need working capital financing to bridge the collection gap. But how do you getworking capital in today�s lending environment? Read on. . . . . .
© TFMS, Inc. 2014
INVOICE FACTORING
Factoring is cash flow without borrowing.You sell goods or services to your customer on open account, which creates an invoice. Yourcustomer normally pays the invoice in 30 to 90 days.
But you need money now, to operate your company.
You sell your invoice to a factor company, and get paid up to 95% of the invoice, resulting inimmediate cash flow to your company.
The factor company collects the invoice payment from your customer, and then pays youthe remainder of the invoice less their discount and fees.
Remember, factoring is the PURCHASE of an invoice, not the financing of it. It createsno debt, does not dilute equity, and allows for the approval of startups.
What is factoring?
INVOICE FACTORING
How does factoring work?
1. Factor Company evaluates the credit of your customer.2. You assign the invoice debt to the Factor Company.3. You put a notification on your client invoice copy to pay the Factor Company4. You forward original invoice copy to the Factor Company5. Factor Company advances you up to 95% of the original invoice6. When your customer pays the invoice, the remaining 5% is paid to you less
the Factor Company�s fee.
Very Important - Unlike most factoring firms, our invoice factoring is NON-RECOURSE to you.
INVOICE FACTORINGNon-Recourse Factoring
� We accept the credit risk of the account debtors(customers of our clients)
�We manage the accounts receivable, assuring the timelypayment is received
� Free credit checks, mailing of invoices, and collectionefforts all included in our fees.
�Online account access for client in real time.
INVOICE FACTORING
What are the benefits of factoring?
•You get money now, not in 30 to 90 days, improving your cash flow.•You are relieved of the work relating to sales ledger administration and debtcollection, saving office and personnel costs.• Factoring charges are more than offset by reductions in administrative costs.• Reduce overall cost of short term working capital
INVOICE FACTORING
Core Business Targets
v Businesses with Annual Revenue between $250,000 and$20,000,000.
v Equates to outstanding accounts receivable balancesfrom (approx.) $10,000 to $2,500,000 per month.
v Start-up businesses are welcome prospects.
Transportation - 60%Business Services - 15%Manufacturing - 15%Wholesale/Retail Trades - 5%Other - 5%
Transportation Is A Finance Specialty
CREATIVE FINANCING
Call today for a no-obligation evaluationContact Information
Charles Freeland – CFO, Secretary/Treasurer Direct Phone: 405-397-1084 � Email: [email protected]
Corporate Office6957 N.W. Expressway #212 � Oklahoma City, OK 73132-3538
Phone: (405) 397-1084 � Fax: 888-547-7993Email: [email protected] � Web Site: www.tfmsinc.com
