Cash for Growing Businesses

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Comprehensive Funding has the answers -

 
Immediate and ongoing cash flow assistance to companies by providing a virtually unlimited "line of credit" using only your accounts receivable.
COMPREHENSIVE FUNDING CORPORATION
SPECIALIZES IN FACTORING
ABOUT OUR COMPANY
4 REASONS TO CONSIDER FACTORING

AN EXAMPLE OF THE IMPACT

IS FACTORING FOR YOU?

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FACTORING

A process by which a company sells its accounts receivables or invoices to a funding source for an immediate cash advance. This advance is typically 50% to 80% of the face amount of the invoice. The amount not advanced is called a reserve. Your customer then pays the invoice to the funding source according to the terms of the invoice. When the monies are received by the funding source, the reserve is paid to the company, less the funding source’s fee. Funding source fees vary greatly, but range from 2% to 8% depending on the credit worthiness of the customers, the aging history, the industry etc.

 

 

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ABOUT OUR COMPANY

Comprehensive Funding is a brokerage firm that represents a network of over 100 national funding sources.  Some of these sources specialize in "niche industries", such as construction, professional, healthcare, temporary/staffing and services.  Most deal in main stream business to business factoring transactions.

Comprehensive Funding Corporation
414 North Cass Avenue
Westmont, IL. 60559
Telephone: (630) 878-1810
FAX: (630) 963-5564

For more information e-mail at:
info@comprehensivefunding.com

 

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4 KEY REASONS TO CONSIDER FACTORING:

1. Improve
Cash Flow
  • Extend trade credit without waiting 30 to 60 days for your money.
  • Sell your accounts receivables (factoring) and release cash tied up in your business.
  • Give your company the working capital it needs to meet current obligations.
  • Fund future expansion.
  • Prevent cash flow bottlenecks.
2. No Interest
  • A loan or credit line requires paying interest and creating additional debt.
  • A savings withdrawal requires losing interest.
  • Factoring is a way of generating cash "debt free".
  • Your balance sheet is more attractive and your financial position is strengthened by having the cash instead of the accounts receivable.
3. Generate More Sales
  • Have more money to budget for advertising.
  • Factoring gives you more money to budget for production capacity.
  • Increased cash flow allows a greater budget for hiring sales people that can lead to more sales.
4. Increase Profits
  • Take advantage of early payment discounts.
  • Secure larger contracts.
  • Respond immediately to seasonal opportunities.
  • Negotiate better price on raw materials by paying cash.

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THIS IS WHAT FACTORING CAN DO FOR YOUR COMPANY:

  Before Factoring With Factoring
Revenues

$100,000

$200,000
Cost of Goods

$60,000 (60%)

$120,000 (60%)
Gross Profit

$40,000 (40%)

$80,000 (40%)
Overhead

$38,000 (38%)

$48,000 (24%)
Cost of Factoring

N/A

$5,000 (5%)
Net Profits

$2,000 (2%)

$27,000 (13.5%)
A Company that is positioned to grow but lacks the necessary cash flow can use its accounts receivable to fund that growth internally. Having the cash to invest in additional production, advertising, new sales personnel or the ability to take on larger contracts, as terms will no longer be a problem and will lead to increased sales volume.

The impact of the increased sales can be seen in the illustration. Take a company that is currently at a level of $100,000 per month in sales and offers 30-45 days terms. By factoring those invoices, that money is immediately available to invest in growth. As a result, the sales volume increased to $200,000 per month.

The dramatic effect of funding growth internally can turn a marginally or even unprofitable company into a substantially profitable company. The obvious benefit is that as your sales increase, your fixed costs or overhead remain constant, therefore your profit margin increases.

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IS FACTORING FOR YOU?

The Need:
  • Do you have a profitable business that finds itself in short supply of cash from time to time?
  • Could better cash flow allow you to take advantage of discounts from your suppliers?
  • Is your business growing or could it grow faster if your cash flow was improved? 
  • Could you take on larger orders, or fill back orders with better cash flow?
  • Have bank loans been difficult to obtain or are unattainable?
  • Do you need a continuous source of cash?
Advantages:
  • Detailed accounts receivable management reports.
  • Cash within 24-48 hours.
  • Credit insurance on your larger clients.
  • No long term contracts, you factor as needed. Discontinue anytime.
  • No volume commitments.
  • Simple application process.
  • The no-debt solution to increased cash flow
What Next? If increased cash flow is your goal, a simple application is available for your convenience.

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