Factoring
Cash flow funding problems can be solved using a First Fidelity Funding
contract. Medium to small business operators find that they have to
supply their better customers goods and services on credit, the terms
may be 30 days Nett but in most cases a 30 day credit line can end
up being 45 to 90 days. In the mean time the business operator must
continue production using internal funding or borrow more working
capital from a bank.
Sounds
easy, We have $ 120,000.00., on the books, we need $ 25,000.00., to
finish off the present orders. You know your debtors will pay, you
have dealt with most of them for years, the bank will understand our
position. Yeah, guess again
.. Bankers are only "fair weather lenders"
Unless you have some more equity in the real estate the bank already
has their clutches on, No loan buster
..
At
First Fidelity Funds, we are there when the weather turns "rough"
we understand the need to keep the "ball rolling" been there, done
that. First Fidelity will buy your invoices and pay up to 80% of the
invoice value upon verification, straight into your bank account,
clear funds to draw on straight away
. not 3 to 5 days your bank
requires on cheque deposits. The cost to your business would be between
3% to 8% based on your clients strength not yours. First Fidelity
will collect the full invoice value from your client on the terms
you have arranged and direct deposit the 20% in the case of an 80/20
deal direct to your bank. The cost varies on the terms you extend,
30 days up to 90 days. But remember as in the case when your debtor
defaults, you lose out. On factored invoices, should your client let
you down by not paying the invoice in full or not at all, First Fidelity
will require you buy back the defaulted invoices at full face value.
Factoring
has been around for over 100 years, but only in today's harsh banking
environment has it become such an important source on "non bank" lending.
Contact
us and discuss your cash flow requirements, we accept general trade
invoices, Federal, State and Local Government invoices, medical, construction
and motor industry invoices.
Have some questions? Need
some clarification?, ask us here
