Liquidity For Your Business...
Liquidity is the difference between success or failure of your business. There are situations where taking on extra leverage just does not solve the problem at hand, or doing so will ruin the profit margin on your contract. Here we explore different types of Account Receivable Facilities and how they can work with your billing cycles and commercial clients NET terms.
Liquidity For
Your Business...
Liquidity is the difference between success or failure of your business. There are situations where taking on extra leverage just does not solve the problem at hand, or doing so will ruin the profit margin on your contract. Here we explore different types of Account Receivable Facilities and how they can work with your billing cycles and commercial clients NET terms.
STELLAR LIQUIDITY
Do you invoice creditworthy customers? Own Real Estate or Equipment? Asset Based lending may be the perfect solution for you. This includes: Equipment Financing, Invoice Factoring, Purchase Order Financing and Asset Based Lines of Credit.
Invoice Factoring
Let's Walk Through How A Factoring Facility Provides Liquidity!
The factoring facility underwrites your customers to make sure they are creditworthy. Once a customer is approved you remit invoices to the factoring facility. When the invoice has been verified 80-95% of the invoice is released to you directly while the remaining amount sits in an escrow account until your customer pays the invoice. Once your customer pays the invoice the remaining amount is released to you less fees which often work in what is known as a bucket structure.
For example the first 30 days an invoice ages you will pay a 1-2.5% fee. For 31-60 days an additional point or two and so on and so forth until your customer pays. Some facilities allow you to “age” your invoices before submission. IF you have a customer that you know pays on net 90 terms, you have the ability to hold the invoice for 60 days until your fee structure would be the NET 30 bucket. You can look at an invoice factoring facility as a way of extending credit to your customers and include fees in your billing if you would like. This makes Invoice factoring one of the cheapest ways to avoid borrowing and continue to support healthy growth.
Industries who use Factoring:
B2B Services, Medical, staffing, construction, transportation, suppliers, wholesalers, manufacturing, oil and gas, solar, distributors
STELLAR LIQUIDITY
Do you invoice creditworthy customers? Own Real Estate or Equipment? Asset Based lending may be the perfect solution for you. This includes: Equipment Financing, Invoice Factoring, Purchase Order Financing and Asset Based Lines of Credit.
Invoice Factoring
Let's Walk Through How A Factoring Facility Provides Liquidity!
The factoring facility underwrites your customers to make sure they are creditworthy. Once a customer is approved you remit invoices to the factoring facility. When the invoice has been verified 80-95% of the invoice is released to you directly while the remaining amount sits in an escrow account until your customer pays the invoice. Once your customer pays the invoice the remaining amount is released to you less fees which often work in what is known as a bucket structure.
Industries who use Factoring:
B2B Services, Medical, staffing, construction, transportation, suppliers, wholesalers, manufacturing, oil and gas, solar, distributors
For example the first 30 days an invoice ages you will pay a 1-2.5% fee. For 31-60 days an additional point or two and so on and so forth until your customer pays. Some facilities allow you to “age” your invoices before submission. IF you have a customer that you know pays on net 90 terms, you have the ability to hold the invoice for 60 days until your fee structure would be the NET 30 bucket. You can look at an invoice factoring facility as a way of extending credit to your customers and include fees in your billing if you would like. This makes Invoice factoring one of the cheapest ways to avoid borrowing and continue to support healthy growth.
Government Contract Mobilization
We secure mobilization funding for government contracts, allowing you to take on larger jobs and increase your companies revenue while not sacrificing liquidity. We can advance up to 10% of the total Government Contract amount and provide mobilization funding to jump start the project. This allows you to take on larger jobs, by securing funding for the material and personnel that come along with that. Once the project is underway and the initial invoice is issued, the facilities funding process will convert into an Accounts Receivable facility. You are then advanced up to 90% of the amount on your work completed invoice(s). This provides the working capital needed to ensure the project is completed on time.
We <3 working with companies who are a part of the SBA 8 (A) Program!
PURCHASE ORDER FINANCING
An invoice factoring facility is the BASE of any specialty Asset Based financing including P.O. Financing and Government Contract Mobilization
Purchase order financing is a solution for companies that lack the funds needed to purchase finished goods or materials from a supplier before their client pays. With shipping times and container costs on the rise, margins are smaller, making it difficult to cover the costs out of pocket for production. Rather than turning away business, Purchase Order Financing allows your company the flexibility to fund a project with little to no upfront capital.
Government Contract Mobilization
We secure mobilization funding for government contracts. Allowing you to take on larger jobs and increase your companies revenue while not sacrificing liquidity. We can advance up to 10% of the total Government Contract amount and provide mobilization funding to jump start the project. This allows you to take on larger jobs, by securing funding for the material and personnel that come along with that. Once the project is underway and the initial invoice is issued, the facilities funding process will convert into an Accounts Receivable facility. You are then advanced up to 90% of the amount on your work completed invoice(s). This provides the working capital needed to ensure the project is completed on time.
PURCHASE ORDER FINANCING
option for companies that lack the funds needed to purchase finished goods or materials from a supplier before their client pays. With shipping times and container costs on the rise, margins are smaller, making it difficult to cover the costs out of pocket for production. Rather than turning away business, Purchase Order Financing allows your company the flexibility to fund a project with little to no upfront capital.
An invoice factoring facility is the BASE of any specialty Asset Based financing including P.O. Financing and Government Contract Mobilization
Apply in 11 minutes
Usually it takes 10 but maybe you don't have your tax id number memorized so we gave you an extra minute to find it.
Pick From the Best
We pull the best offers saving you time and credit inquiries. We protect your information while using our relationships to your advantage.
Secure your Capital
Work with Stellar to secure financing for your business quickly and easily.
Apply in 11 minutes
Usually it takes 10 but maybe you don't have your tax id number memorized so we gave you an extra minute to find it
Pick From the Best
We pull the best offers saving you time and credit inquiries. We protect your information while using our relationships to your advantage.
Secure your Capital
Work with Stellar to secure financing for your business quickly and easily.