Do you have questions about our asset-based lending or healthcare accounts receivable financing services? Below you’ll find answers to some of the most common inquiries we receive from current and prospective financial partners. Please feel free to contact us if the answer of your particular question about factoring, asset-based financing, or accounts receivable services that aren’t answered here.
There aren’t many attractive options available to a borrower unable to qualify for traditional bank financing. The options are 1) raise equity, 2) seek money from friends and family, 3) forego the growth opportunity, or 4) seek financing from firms like The Commercial Finance Group. The first two options are expensive, slow, unreliable, and intrusive into your business, while turning away sales is seldom desirable. Our capital, when used properly, is transitory and can act as the “bridge to bankability”. We, at The Commercial Finance Group, are very aware of the challenges facing small companies and can usually structure a financing program to meet your borrowers’ specific needs. Please contact us to learn more about the customized financing options we have available.
We charge a fair price for our services taking into consideration our borrowers needs and the risks associated with the transaction. The additional cash-flow and the ability to grow your revenues, hence profits, without diluting your ownership, means you retain control of your company. In addition, we provide credit monitoring, reporting, collections and other services that you otherwise would have to hire. Thus, the additional cash flow and higher revenues can more than offset the financing cost. Additionally, many borrowers are able to recoup most, if not all, of the financing cost by adjusting pricing to their customers. We help customers understand the importance of access to capital and what that can mean to their profits and equity value of their company.
We do not always require use of a lockbox or controlled account but may request certain borrowers change their remit-to address for incoming customer payments. This allows for speedy posting of payments to the proper accounts and allows our borrowers access to the free on-line reporting services offered by The Commercial Finance Group.
That really depends on you. We are comfortable with many types of hand-offs. It could be a phone introduction, an email, a joint call in person, or even could be anonymous. It is your prospect, so however best you feel we can accommodate. Regardless of the method of introduction, it is best for the banker to alert the prospect that our capital is temporary and is only meant to be a temporary solution.
We are not regulated, and therefore are not subject to the scrutiny of regulators. Because we deploy our own capital, and evaluate risk as we see it, we are only limited by our view of an acceptable risk for an appropriate return on that risk. By not being reliant on depositors funds, which are insured by the US taxpayer through the FDIC, we are limited only by the appetite of risk we are willing to accept and the amount of capital we have to deploy. We provide access to capital when it is not available from a bank, that is our mission.
Absolutely, and in fact, by using the assets of the business for financing, many borrowers find that their personal credit scores are enhanced. CFG does not provide any bank services.
Yes, they are. CFG requires first position on invoices you have submitted to our accounts receivable financing program. In some instances CFG may elect to work with a bank or SBA lender who is also financing the end client. In these cases, the bank must be willing to subordinate its position on the accounts receivables.
We provide…
- The most competitive rates available
- Financial strength and stability
- US offices coast-to-coast, in Canada, and Worldwide
- Individualized service that is professional and unparalleled
- 40 years experience serving small to medium sized businesses
- Numerous programs and flexibility to meet the specific needs of individual companies
- Funding from $25,000 to $2,000,000 per month
- Web access to your accounting records to provide real time reporting
Any business engaged in creating business to business accounts receivable needing cash flow financing of $25,000 to $2,000,000.
- CFG purchases your approved commercial accounts receivable once the goods are shipped or services are completed
- CFG handles invoices, mailing, processing, and postage at no additional cost
- We provide timely aging reports so you know the status of all your accounts, including online reporting
- We provide up-to-date account information, customer balances, and detail reports via the web, as well as the ability to monitor delinquent accounts 24/7
- We offer professional accounts receivable management and collection services on your factored account
For some people, this question is their most important issue. Generally most finance companies will want the customers (or debtors) to remit directly to them. In today’s environment, where factoring is more widely known, this seldom causes a problem. However, well-managed finance companies like CFG will typically have a Non-Notification program available for those situations where it is warranted. Either way, factoring clients should take the time to inform their customers that a change with remittance will be taking place and that it is planned. Good business people know the value of open account terms and the importance of maintaining and enhancing terms. Factoring can help to ensure that everyone is paid on time. If clients, customers, and suppliers all cooperate, everybody benefits.
- Improves cash position
- Increases purchasing power
- Works to improve your credit rating
- Makes it possible to increase production and sales
- Provides professional credit checking on your customers
- Provides complete accounts receivable portfolio management
When you borrow…
- Typically a lender will secure collateral equal to a minimum of three times the loan amount
- Your flexibility is restricted
- You cannot secure additional funds without renegotiating the loan
- You must meet monthly payment obligations
- You incur additional debt further leveraging your business
When you factor…
- You don’t borrow money
- There are no monthly payments
- Mailing expenses and costs associated with follow-up management on accounts are eliminated
- Undercapitalized or new companies
- Growth-oriented companies
- Companies that cannot get adequate bank financing
- Companies with tax problems, liens, or working through a bankruptcy
- Companies with low or negative net worth
- The funds can be used for almost any business expense, such as increasing inventories, capital expenditures, taking advantage of supplier discounts, hiring additional staff, and expanding facilities.
- Accounts receivable financing frees your staff from onerous billing, collection, and administration chores while eliminating costly mailing fees.
- CFG can take over the backroom operations for your credit and collections departments.
- Funds secured through a reliable factor (such as CFG) will enable you to ensure your business achieves the growth it needs to flourish.
- A cash flow tool that allows you to use your accounts receivable as an asset to ensure the growth of your business, without diluting your existing equity or incurring additional debt.
- An effective way to turn your accounts receivable into immediate cash which you can use any way you wish.
