Alternative Funding Options (AFO) recently helped these businesses secure financing:
Work in Progress and A/R Factoring – A general contractor was awarded a $250k contract with the City of St. Petersburg to dredge a lake. He needed $50k upfront to lease some equipment, buy supplies and hire some workers. He was not able to submit his first invoice for 60 days in the amount of $100k. AFO was able to secure him financing against the contract and then in 60 days when he submits the first invoice, he will factor that and get the monies to pay off the Work in Progress Financing.
Bank Line of Credit – An investor owned some residential properties free and clear valued at $500k and was looking for a bank line of credit for $350k so that he could buy another property. AFO was able to secure bank financing for him.
Account Receivable Financing a/k/a Factoring – A florist won a large contract with a hotel chain and they were requesting payment terms of 45 days. The monthly invoicing was going to be around $20k and this was going to create cash flow issues since they needed to order inventory daily. AFO was able to secure them factoring of their accounts receivable. Once they submit the invoices, they receive 85% of the amount within 24 hours. The 15% is held back in reserves and once their customer pays the invoice, their factor fee is calculated and deducted from the 15% and the difference is credited back to them.
Unsecured Loan – A start up company needed $20k to lease their space, get some furniture and for marketing. They had a Fico score of 770 but wasn’t able to qualify for bank financing. AFO was able to secure an unsecured loan at 11.99% for 36 months.
Commercial Real Estate Loan – An existing dry cleaners had a note due with their bank i/a/o $400k and because of some prior year losses, could not get approved for bank financing. The LTV was at 53%. AFO was able to find an alternative lender that was able to finance their property at a rate of 9.25%, interest only with a 3 yr. balloon.
Please keep me in mind with any of your customers that are in need of financing for purchase orders, accounts receivable or factoring, inventory, asset based lines of credit, equipment, business acquisitions merchant cash advances, some unsecured or micro loan programs and for any type of commercial real estate for purchase, refinance or cash outs. We also work with customers in helping them find bank financing, if they qualify.