Factoring is simply selling your future accounts receivable for cash today, rather than having to wait 45-60 days to receive payment. A Merchant Cash Advance is using your past credit card sales to predict your future credit card sales, and borrowing those future sales dollars for cash today. A Working Capital Loan is pledging owned assets as collateral and that collateral for cash today.
In 2008, U.S. Factoring volume exceeded $590 Billion dollars (according to the Commercial Finance Association). You can use the cash today to meet cash flow needs of today, for expenses such as payroll, inventory, fuel, insurance, or repairs. If you have at least 12 months in business, OBL can provide these services to assist with unexpected cash outlays or assisting with temporary financial problems.
So that you can prepare your responses before you call, the following are questions that will be asked:
- Who are your customers and what terms do you extend to them?
- What is you average monthly sales volume?
- What is your average turn on receivables?
- What type of financing are you currently using?
- Are you experiencing working capital shortfalls, and if so, in what areas?
If you are interested in learning more about these options offered by OBL, please give us a call at 800-772-7180 or Contact Us.