Transcript Financing

WHEN BANKS SAY“NO!”
THE SMALL BUSINESS GUIDE
TO
FACTORING
ENTREPRENEURIAL FINANCE
Much has been written about entrepreneurs
and their unique characteristics.
A common fallacy regarding small
business entrepreneurs is that they
are driven to build immense empires.
That is generally not the case.
ENTREPRENEURIAL FINANCE
The fact is, most true entrepreneurs start
their businesses simply to generate a "living"
and a steady stream of income. As true
entrepreneurs, however, they must also be
their own person, make their own decisions,
and the business must run their way.
Among their many characteristics,
entrepreneurs.....
ENTREPRENEURS
• are risk takers and believe in themselves,
their ideas, and their hunches. True
entrepreneurs seldom give up and will
never quit seeking a successful venture.
• are competitive and strive to earn respect
from both customers and competitors. They
compete with themselves and believe they
control their own destiny.
ENTREPRENEURS
• tend to be loners and thinkers who are
often attracted to home-based businesses.
They spend serious amounts of
"alone time" analyzing problems
and theorizing solutions and
are always thinking up new
ideas for beginning some
new venture.
ENTREPRENEURS
• are goal oriented and once a goal is
achieved, they may well replace it with an
even loftier goal.
• are multi-taskers. Once a new idea is
envisioned, they will then quickly develop a
sense of urgency towards its fruition.
ENTREPRENEURS
• tend to have a never ending sense of
urgency to develop their new ideas. In fact,
it is most often only their inability to finance
their many ideas and projects that truly
limits an entrepreneur's
potential for success.
ENTREPRENEURIAL FINANCE
This presentation and its accompanying
booklet, When Banks Say “No!”, is designed
to assist small business entrepreneurs in
understanding the world of Early Stage
Financing Alternatives and in particular...
• commercial accounts factoring
• asset based lending
• purchase order finance
WHAT IS SMALL BUSINESS?
The U.S. Office of Advocacy defines a small
business as an independent for-profit
business with fewer than 500
employees. When attempting to qualify for
government contracts, the U.S. Small
Business Administration furthers that
definition by defining size requirements by
business type. The complete listing is
available at www.sba.gov/size.
SMALL BUSINESS NUMBERS
According to the most recent census data,
the U.S. Department of Commerce estimates
there were 27.2 million businesses in the
United States of which 6 million had
employees. Of those with employees, 99.9%
were defined as "small business" (those firms
with fewer than 500 employees).
NEED FOR FINANCE
Unfortunately, data also reveals that one third
of all these small businesses started end up
failing within the first two years of operation
and less than 50% survive four years. One
of the greatest causes of small business
failure is their inability to secure adequate
financing in their early stages of existence.
ENGINE OF GROWTH
Throughout the world, small business is
recognized as the true engine of economic
growth. According to the U.S. Small
Business Administration (SBA), small
business ventures make up nearly 99% of all
known businesses in America with numbers
now totaling over 22 million.
STARTUP FINANCING
Most small business ventures are initially
launched with the personal savings or other
assets of the founder. Sources of startup
capital are most often bank savings
accounts, investment accounts (stocks and
bonds), loans collateralized by the family
home or other real estate, credit cards, or
personal loans from friends and family.
STARTUP FINANCING
Few new companies are ever started with
funds from true "angel investors" or formal
venture capital.
Typically, entrepreneurs will
actually be faced with the
task of raising capital in
two generic rounds, with...
RAISING CAPITAL
• round "A" being an initial start up round
where savings and funds from friends and
family are utilized. And...
• round "B" being more traditional
financing from banks and more formalized
lenders.
RAISING CAPITAL
While the understanding of rounds "A" and
"B" financing is acceptable, it paints the true
picture of entrepreneurial finance with a
much too simplistic brush. For a better
understanding of the actual stages
associated with types of business finance,
the definitions commonly utilized in the
professional venture capital industry are
much more appropriate. Among these are:
STAGES OF FINANCE
• Seed: the concept or idea stage of a
business where money is needed to
research feasibility.
• Startup: financing prior
to initial operation.
STAGES OF FINANCE
• First Stage: an operating business with
capital needs for equipment, payroll, and
marketing.
• Second Stage: growth capital now
required with good First Stage results.
• Bridge: temporary financing between
other financing rounds.
STAGES OF FINANCE
• Mezzanine: equity financing that is prior to
an initial public offering (IPO).
• Franchise Funding: financing for the
purchase of a franchise.
• Leveraged Buyout: financing to purchase
another established company using the
combined assets for purchase.
STAGES OF FINANCE
• Recapitalization: financing revolving
around the restructuring of a company's
balance sheet and increasing or decreasing
the company's debt.
• Bankruptcy: financing to acquire another
company operating under a filing of
bankruptcy in Federal Court
DEBT vs. EQUITY FINANCING
In order to grow their businesses, it is crucial
for all entrepreneurs to have access to
"ready" capital. Commercial banks and other
depository institutions have historically been
the largest providers of financing for small
business, accounting for approximately 65%
of all financing through commercial loans
(including those for non-residential
mortgages, vehicles, equipment, and leases).
DEBT vs. EQUITY FINANCING
Though a variety of resources for commercial
financing are available worldwide, actual
providers of business capital can be broken
down into two very broad categories. Those
that provide equity investment alternatives,
and those that financing through debt.
EQUITY FINANCING
Equity Financing...can be described as the
exchange of money for a percentage of
ownership in a business. Equity financing
allows a business owner to acquire funds
without the expense of servicing debt. It
typically does not encumber assets such as
equipment, inventory, and accounts
receivable and is normally accessed through
venture capital companies.
DEBT FINANCING
Debt Financing...refers to borrowed money
that is paid back over time. Debt financing is
flexible and can be for varied periods of time
(short term or long term). The lender does
not gain an ownership interest and the
obligation of the business owner is simply to
repay the loan as set forth in the lending
agreement.
DEBT vs. EQUITY
Debt and equity financing offer significantly
different opportunities / responsibilities
when raising capital.
Some of the many
advantages and
disadvantages of
both methods
include:
DEBT FINANCING
• Does not dilute an owner's interest in the
company.
• Other than variable rate loans, repayment
is fixed.
• Interest expense is deductible on tax
returns.
• No shareholder servicing requirements.
EQUITY FINANCING
• Requires no periodic payment of interest.
• Will not affect a
company's cash flow.
• Does not encumber assets.
• Does not require
budgeting for principal
repayment.
ACCESS to FINANCING
A common source of frustration to virtually all
small business entrepreneurs is their inability
to access credit through the traditional
banking system as they attempt to grow their
businesses. Banks and traditional lenders
are severely regulated and covenant
restricted when attempting to provide truly
accessible financing and small business
loans to startup entrepreneurs.
ACCESS to FINANCING
For most small business entrepreneurs, it is
when their business is initially successful
through its start up and first stage operation
that the entrepreneur is confronted with
his/her first cash flow problems. It is at this
stage that the initial cash grub stake from
savings, credit cards, and friends and family
is "burned through" and immediate additional
financing becomes necessary.
ACCESS to FINANCING
This is also when an understanding of the
many financing options offered by such
federal agencies as the Small Business
Administration and the United States
Export-Import Bank become highly important
and when an in-depth understanding of the
alternative commercial finance (ACF)
industry may become critical.
The SBA and EX-IM BANK
The U.S. Small Business Administration
(SBA) and the Export-Import Bank of the
United States (Ex-Im Bank) are two
independent federal agencies with powerful
financing options for small business
entrepreneurs. The SBA was created in
1953 for the purpose of aiding, counseling,
assisting, and protecting the interest of small
business concerns and free enterprise.
The SBA and EX-IM BANK
Export-Import Bank of the Unites States was
empowered in 1934 as the official export
credit agency of America. Both
government agencies provide
extensive financial services to
small and mid-size businesses
with a broad range of programs.
FACTORING and ACF
The global community of factoring and
alternative commercial finance providers offer
an extensive and powerful source of
financing options for start up / first stage
companies struggling in their early, formative
years of operation as well as larger,
seasoned companies in the various growth,
expansion and operational stages of their
existence.
FACTORING and ACF
The spectrum of factoring and ACF products
directly addresses the problems faced by
those entrepreneurs which, for a variety of
reasons, are unable to
access traditional bank
financing and lines of credit
and the early stage capital
required to grow their ventures.
ALTERNATIVE COMMERCIAL
FINANCE
Worldwide, there are literally dozens of
unique financial product areas that join to
make up the entirety of what is termed the
alternative commercial finance community
with some being more favorable than others
in particular economies and geographic
regions.
ALTERNATIVE COMMERCIAL
FINANCE
For their ability to provide ready access of
capital to entrepreneurs and to generally
meet the working capital and cash flow
problems of start up and early stage small
business, several areas clearly stand out
among the rest. These areas include...
FACTORING
Commercial Factoring...one of the oldest
known forms of commercial finance, factoring
is also characterized by its simplicity. It
directly addresses those cash flow problems
associated with accounts receivable of a
business, slow paying customers upon those
accounts, and the granting of terms of
payment to customers in order to become
more competitive and to secure more
business.
ASSET-BASED LENDING
Asset-Based Lending...similar to factoring
in some ways, asset-based lending solutions
can be employed in a
multitude of industries
where financing of accounts
receivable, inventories,
and equipment is essential
for growth.
PURCHASE ORDER FINANCE
Purchase Order Finance...simply put,
purchase order finance involves the process
of providing capital to business owners
needing to purchase or to actually
manufacture goods to fill large orders prior
to shipment. It is often necessary to facilitate
handling transactions involving major
retailers.
MERCHANT CASH ADVANCES
Merchant Cash Advances...a relatively new
area of small business finance but with broad
availability, MCAs provide
cash advances on future,
anticipated credit card
receipts of retailers
which can be used for
growth and expansion.
BANKS vs. ACF
For entrepreneurs in the early high-growth
period of developing their business, ACF
offers some significant advantages to
traditional financing. One such advantage is
the ability to finance each asset of a
company separately. When banks provide
financing, they will typically require all
assets of the company as collateral and file a
"blanket lien" when perfecting their loan.
BANKS vs. ACF
With such a blanket lien filing, the single loan
will be secured (collateralized) by inventory,
accounts receivable, machinery, equipment,
patents, rents, and any other asset of the
company. In such cases, bank loans are
often significantly over collateralized.
With ACF, collateral is typically taken
separately.
ACF EVOLUTION
Alternative commercial finance is a
community rich in history and legend.
Factoring, for example, may well be the
oldest form of commercial finance known to
man though most know little of its extensive
history and remarkable problem solving
capabilities when compared to more
traditional business financing methods.
ACF EVOLUTION
Factoring is literally centuries older than
modern day banking and some of history's
earliest recorded commercial
transactions of both the
ancient Egyptians and
Phoenicians reference
features similar to
modern day factoring.
ACF EVOLUTION
Asset-Based Lending's earliest beginnings
can be traced to a pair of encyclopedia
salesman, Arthur Jones and John Little who
started the first finance company, Mercantile
Credit Company, in 1904 which offered
accounts receivable financing. Asset-based
lending has grown steadily since and now
accounts for over 20% of all short term
business credit in the U.S.
TODAY’S ACF INDUSTRY
Overall, today's alternative commercial
finance industry is enormous with assetbased lending transactions alone
accounting for over $545 billion in terms of
outstanding loans annually. Factoring,
known affectionately as the industry's "crown
jewel", has grown to an annual volume of
roughly $135 billion domestically.
TODAY’S ACF INDUSTRY
But as far as factoring is concerned, that is
only the tip of the iceberg. Recent statistics
compiled by the international factoring
organization, Factors Chain International,
quotes total global factoring now reaching an
epic annual volume of nearly $1.3 trillion.
TODAY’S ACF INDUSTRY
Other areas are expanding just as rapidly.
According to ELFA, the Equipment Leasing
and Finance Association, the $650 billion
leasing industry is adding nearly $6 billion in
new equipment leases every month.
TODAY’S ACF INDUSTRY
When you additionally begin to include the
many unique niche product areas such as
forfaiting, purchase order finance, merchant
cash advances, etc., the overall dollar
volume of specialized, non-traditional bank
financing done throughout the world is many
trillions of dollars each and every year.
ACCESSING ACF
While many of the product areas, associated
with the alternative commercial finance
industry are well established throughout the
world, some are relatively new. What has
changed markedly in the past 10-15 years
is the broad access to knowledge of
alternative commercial finance products.
This has occurred primarily due to two major
influences:
ACCESS TO ACF
• The Internet....without question, the
information superhighway now offers and
imparts a broad array of knowledge to those
who know where to look.
• Industry Brokers....a unique vocation
practiced by a select group of individuals that
share their industry knowledge with small
business entrepreneurs.
THIS PRESENTATION
With such an expansive and rich array of
industry product areas, it is clearly well
beyond the scope of any basic presentation
(or most university courses for that matter) to
provide a complete education in all of the
fascinating areas of entrepreneurial and
alternative commercial finance practiced
throughout the world.
THIS PRESENTATION
The objective of this booklet, When Banks
Say NO...the Small Business Guide to
Factoring, is to impart an introductory
knowledge of two of the most practiced and
accessible areas of alternative commercial
finance available to small and mid-size early
stage business entrepreneurs....Factoring
and Purchase Order Finance.
ENTREPRENEURIAL FINANCE
FACTORING
FACTORING
In simple terms, factoring or accounts
receivable factoring is the sale of the
accounts receivable of a business at a
discount to a finance company known as the
factor. Factoring is commonly employed by
businesses that grant extended terms of
payment to their customers for goods or
services purchased, allowing those
customers to delay payment upon invoices
for 30, 45, 60 days or longer.
FACTORING
Factoring is commonly employed by
businesses that grant extended terms of
payment to their customers for goods or
services purchased, allowing those
customers to delay payment upon invoices
for 30, 45, 60 days or longer. It is probably
the oldest form of commercial finance known
to man.
FACTORING
It is important to keep in mind as you develop
your knowledge of this powerful financial tool,
factoring differs dramatically from most other
forms of commercial finance in that true
factoring is never in the form of a loan.
Factors actually purchase the accounts
receivable of a business, a trait that
sometimes gives factors certain advantages
over more common commercial lenders.
FACTORING
For entrepreneurs in the early stages of
developing their businesses, factoring
represents one of the most powerful
financial tools available. Factoring...
• is available to businesses in the earliest
"start up" stage of their existence.
• requires little or no credit history for either
the business or its owner.
FACTORING
• provides a financing facility that
automatically increases as your business
grows.
• provides substantial operational support in
addition to providing capital.
• allows other business assets to be
financed separately from accounts
receivable.
FACTORING
Most factoring arrangements are sought out
simply to provide a readily accessible method
of financing a company’s terms of payment
policy and to remedy the cash-flow problems
a business often experiences by granting
such attractive terms of payment to its
customers.
FACTORING
At some point in time, as companies grow,
they are almost required to initiate a terms of
payment policy. Terms of payment are
granted by sellers as an accommodation for
a singular purpose…that is to attract more
purchases from large (and sometimes not so
large) creditworthy customers.
FACTORING
Many large, creditworthy customers, on the
other hand, demand terms of payment for a
singular purpose…..that is to benefit from the
payment delay provided under the terms of
payment policy and to allow time to sell
products or provide their own services and to
generate enough additional cash to
subsequently pay their supplier's invoice
within the normal payment terms.
FACTORING
For large corporations, the benefits of
demanding extended terms of payment from
vendors are very significant. When one
business grants terms of payment to another,
it is in effect, creating a short-term
non-interest bearing business loan to that
company. (See example page 18)
FACTORING
Because of the attractiveness to large
companies of delayed invoice payments,
it is not unusual to see contracts and large
purchase orders granted to those vendors
and suppliers that offer the most attractive
payment terms, even if the prices for goods
or services are slightly higher than from
competitors.
TRANSACTIONAL BASICS
In a typical factoring transaction, a business
owner (known as the client) will enter into a
relationship with a commercial financing
source (the factor) to which it periodically
sells its invoices payable by its customers.
In most modern factoring transactions, the
invoices are initially purchased by the factor
with an advance of cash (usually 75-85% of
the invoice face value).
TRANSACTIONAL BASICS
By periodically purchasing a business's
invoices, the factor provides immediate
working capital for normal
operations including
timely payment of
its bills due to suppliers
and its periodic payroll
obligations.
FACTORING BENEFITS
With a factoring arrangement in place, the
customers of the seller still get to enjoy their
30, 45 or even 60 day credit terms while the
factor, not the seller, patiently waits for the
agreed payment. The factor will make
collection calls on behalf of the seller, provide
weekly accounting of all collections and fees
charged, and provide monthly statements of
account to the seller's customers.
FACTORING BNEFITS
When payments upon purchased invoices
are ultimately received from the customers,
the factor deducts its fee for services (the
factoring fee), repays itself for the earlier
advance, and then rebates the balance to the
seller (client). In most modern factoring
arrangements, clients will sell their invoices
to the factor on at least a weekly basis but
sometimes as often as daily.
FACTORING BENEFITS
Though the circumstances that can trigger
the critical need for a factoring arrangement
can vary considerably, the common thread is
always a need to speed up the payment from
invoiced sales so the cash can be used for
some immediate purpose. Such needs
typically include…
FACTORING BENEFITS
• making timely payroll.
• paying suppliers for parts or merchandise
early to obtain volume discounts.
• paying overdue
tax obligations.
• purchasing machinery
and equipment.
FACTORING BENEFITS
• funding retirement plans and programs.
• providing funds for acquisitions or
expansion.
• increasing sales and
marketing operations.
• buying out business
partners.
FACTORING BENEFITS
The list of reasons for establishing a factoring
arrangement go on and on. In most cases,
the need for factoring is the result of the
inability of a business to access bank lines of
credit, a trait that is of even greater
importance in today's credit impaired
markets. It is no surprise that factoring is
enjoying an increasing awareness by
business owners today as more traditional
methods of business finance prove difficult to
obtain.
FACTORING TRANSACTION
CHARACTERISTICS
Business-to-Business Invoiced Sales
As a method of providing commercial
finance, factoring only involves the purchase
of invoices due for payment for goods
delivered and for services performed on a
business-to-business basis. Factors are not
lenders and do not loan money regardless of
collateral.
FACTORING TRANSACTION
CHARACTERISTICS
Ability to Verify Invoiced Amounts Due
Unlike banks that may lend against hard
assets such as real estate and equipment,
factors purchase a piece of paper (an
invoice). Such invoices clearly must be
verifiable.
FACTORING TRANSACTION
CHARACTERISTICS
Unencumbered Invoices for Purchase
Invoices purchased by a factor must be
unencumbered. This means that the
business owner selling the invoices cannot
have a pre-existing loan from a bank or other
lender that claims the invoices (accounts) as
collateral for that loan.
If such a pre-existing loan exists, the lender
will be required to subordinate the collateral
position.
FACTORING TRANSACTION
CHARACTERISTICS
Assignable Invoices
Factors require the ability to "notice" the
customers of a client and to redirect
payments from the client's address to that of
the factor. While this is not an issue in most
cases, some debtors, such as the Federal
government, may refuse to pay the factor
directly and will not recognize such
notification, thus adding a level of risk that
may be unacceptable to the factor.
FACTORING TRANSACTION
CHARACTERISTICS
Acceptable Profit Margins From Sales
Factors will look at the profit margin of a
prospective client to make certain that
enough profit exists to absorb the overall
costs of factoring. Companies with15% profit
margins or higher can easily absorb the fees
of a factor.
FACTORING TRANSACTION
CHARACTERISTICS
Federal Tax Liens
Prospective factoring clients must have
their payroll and corporate taxes current and
cannot have a federal tax lien for delinquency
in place. It is important to note however,
factoring can be an important tool in dealing
with tax liens, freeing up cash from invoices
which can be used to satisfy liens In some
cases.
FACTORING TRANSACTION
CHARACTERISTICS
Continuous Need /Ongoing Basis
As a prospective client for factoring, the
business should exhibit a need for the
service on an ongoing basis. Those
entrepreneurs that only need additional
working capital on an occasional or one time
basis will find it much more difficult to interest
a factor in accepting the arrangement.
ELIGIBLE INVOICES
For purposes of financing, factors and
lenders will purchase normal trade invoices
reflecting sales "without condition". Certain
types of invoices and / or conditions of sale
can disqualify invoices from factoring or other
forms of accounts finance. Some of the most
common of these characteristics include…
ELIGIBLE INVOICES
•
•
•
•
•
•
•
•
•
Over 90-day receivables
Consignment invoices
Invoices Subject to Lien
Contras
Government / Foreign Accounts
Bill and Hold
Inter-Company Receivables
Contingent Invoices
Poor Credit Quality
FACTORING CASE STUDIES
Case Studies
One of the best methods of understanding
factoring is sometimes through
examples or
"Case Studies".
See page 28.
FACTORING FEES
Fees Charged in Factoring
Fees charged for factoring are usually
calculated per period of time that the invoice
remains outstanding and unpaid. Such
periods are referred to as "windows" and are
frequently either 10 or 15 days. Factoring
fees have dropped markedly over the last
twenty years with a typical 30 day factoring
rate now being about the same as a credit
card transaction (2%-3%). See page 32
INTERNATIONAL FACTORING
INTERNATIONAL FACTORING
As international trade continues to grow,
so do the opportunities for international
factoring or import-export factoring. It is
becoming well established in many
developing nations (especially those that are
highly industrialized) and is often considered
the financing method of choice for export
trade between the United States and Europe.
INTERNATIONAL FACTORING
There are four parties involved in an importexport factoring transaction:
♦
♦
♦
♦
the exporter
the importer
the export factor
the import factor
INTERNATIONAL FACTORING
In most typical international factoring
transactions, the export factor will be located
in the same country as the exporter of goods
and the import factor will be located in the
same country as the importer of goods. The
exporter will work with the export factor who
has a relationship with the import factor.
Usually, both will be members of
Factors-Chain International
ENTREPRENEURIAL FINANCE
PURCHASE
ORDER FINANCE
PURCHASE ORDER FINANCE
Purchase Order Finance (PO Finance)
is a powerful financial tool commonly offered
through factors and asset-based lenders.
Though its capabilities are not limited to
export-import trade, its use is so common in
cross-border transactions that virtually any
entrepreneur with international commerce in
mind should become familiar with its
capabilities.
PURCHASE ORDER FINANCE
Simply put, purchase order finance answers
the needs of manufacturers and distributors
when capital is necessary to fulfill an order.
Whereas factoring is brought to bear after the
delivery of merchandise or performance of a
service, purchase order finance provides the
necessary capital to manufacture the goods
prior to delivery and invoicing.
PURCHASE ORDER FINANCE
Successful purchase order finance is based
on three criteria:
• a valid order from a creditworthy
customer
• performance capability of the client
• is it a "firm" purchase order?
PURCHASE ORDER FINANCE
Purchase order finance is primarily utilized by
two types of companies... distributors and
manufacturers. It is generally not available
for the service sector. As a rule, distributors
do not manufacture or assemble their product
although many intoday's markets are
"contract manufacturers" and arrange for the
manufacturing of a product overseas
PURCHASE ORDER FINANCE
Purchase order finance companies work
directly with factors and asset-based lenders.
Once an order is filled and delivered to the
customer, the customer is invoiced by the
client and an account receivable is created.
At this point, the purchase order finance
company must be "taken out" by the factor or
lender.
PURCHASE ORDER FINANCE
As a general rule, most purchase order
finance companies dislike working directly
with lenders such as banks, much
preferring the flexibility of the factors and
asset-based community.
PURCHASE ORDER FINANCE
As mentioned, one of the most common
transactions requiring purchase order finance
is that of offshore contract manufacturing.
When a foreign factory, for example,
manufactures a product for a domestic
company, they generally require full payment
when the goods are delivered to the freight
forwarder.
PURCHASE ORDER FINANCE
To accommodate the foreign factory, the
domestic manufacturer will contact a
purchase order finance company to:
A. post a letter of credit for payment
B. inspect the goods
C. pay for the goods when required
D. arrange for shipment to the
customer
PURCHASE ORDER FINANCE
Once the goods are delivered to the client's
customer, invoices can be generated which
will be factored. Instead of advancing funds
to the client, the factor first pays the purchase
order finance company satisfying their lien.
The balance of the advance is then given to
the client.
PURCHASE ORDER FINANCE
It is important to understand that purchase
order finance is a short-term transaction,
usually lasting less than 60 days. As with
factoring, it is never used to finance
inventory. Goods generally must be
delivered directly from the factory to the
customer, bypassing the client altogether.
PURCHASE ORDER FINANCE
If the goods must be modified or repackaged
by the client, this can often lead to a problem
with purchase order financing. When
purchase order finance is used to acquire
inventory, an asset-based lender must agree
to take out the purchase order finance
company when the goods are delivered.
SETTING UP A RELATIONSHIP
In most cases, a business owner requiring
purchase order finance will work directly with
their factoror asset-based lender to secure
such financing. In the cases where a direct
relationship is first established with the
purchase order finance company, that
company will refer the business owner to an
appropriate factor or asset-based lender.
Alternative Commercial
Finance Solutions
When Banks Say...
NO!