BlogCatalog

Factoring Government Contracts

Access Funding Center, Inc. now provides a consulting service for clients who would like to sell their government contracts to enhance their cash flow position.In short, clients who would prefer not to receive incremental monthly payments for one to three or even up to five years on their government contracts, may instead elect to “cash out”.Government contracts may be converted into immediate capital to enable you to concentrate on marketing and expanding your business.Because you are selling your government contracts through a form of factoring you are not borrowing. Participants in factoring transactions can utilize newly acquired capital to eliminate bad debt, or to stop offering early payment discounts to their customers, or to leverage off their customers’ credit. When you choose to factor your government contracts, you are positioning yourself to keep pace with growth, increase production and sales, meet payroll, pay payroll taxes or receive cash discounts because you now have more cash on hand. Selling your government contracts thereby enhance your overall cash flow position, improve your credit rating, you will then be able to develop new products or services, or launch new advertising campaigns. Unlike business to business contracts and business to consumer contracts, there is a very limited source that will purchase government contracts or government receivables. If you are a business which has generated a contract with a federal, state or local government entity, we have the right funding sources available which will purchase this type of contracts or receivables. With government contracts financing, all your financial worries of operating your business can easily be solved. Access Funding Center, Inc. is one of the very few consulting services available today which has quick access to a funding source that can enable you to sell business and government contracts. So if you are a business who has a contract with the federal government, state government or local government and would like to sell that contract, please contact Access Funding Center, Inc. for more details.

New Niche in Consumer Receivable Financing

Are you worried about the economy? Or what about the credit crisis? Companies are feeling the pain when they go to the bank and find out the rules of lending have changed all of a sudden.

Consumer Receivable Financing may still be a good source for companies to acquire working capital.

Here are some new niches in the area of consumer receivable financing that may benefit some businesses out there:

1. Rent-To-Own Financing for Musical Instruments
2. Infommercial Financing (Direct Response Funding)
3. Retail Installment Contract Financing for Musical Instruments
4. Payment Stream Financial Program

Categories of industry that will benefit from consumer notes funding:

Health	Home	Technology	Education	Recreation
In-Vitro Fertilization	Piano Sales	Digital Photo	Computers	Campgrounds
Radio Keratotomy	Personal Jewelry	Internet Access	Nursing	Travel Clubs
Orthodontia	Security Systems	Web Sites	Massage	Resorts Timeshares
Veterinary	Water Purification	Computers	Real Estate	Dating Services
Electric Mobility	Furniture	E-Commerce	Business Opportunity	Fitness Equipment
Plastic Surgery	Vacuum & Air	Internet Appliances	Seminars	Martial Arts
Dentistry	Buyer’s Clubs	Electronics		Health Clubs

Benefits of Consumer Receivable Financing to the Business Owner!

For the business owner whose business sells directly to the consumer, consumer receivable financing provides an innovative and non-traditional means of enhancing the cash flow of the owner’s business. Consumer receivable financing involves the business owner selling his/her performing consumer accounts receivables.

The consumer receivables (consumer contracts) are purchased at a discount with a bad debt reserve set aside to offset any possible defaults. The advance which the business owner receives is usually about 70% to 85% of the principal balance on the consumer contract. The terms range from twelve months (sometimes six months or even less) up to five years. Usually the maximum amount of the consumer contract would be about $15,000 (although there are situations where this figure might be increased to as high as $25,000).

 

If you are a business owner whose industry or business is one which traditional lenders have difficulty understanding and relating to, why not consider the non-traditional benefits which consumer receivable financing has to offer. Traditional lenders like to have something they can repossess in order to get comfortable with the transaction, and so they are not comfortable working with a business owner who works off of unsecured consumer contracts. Likewise many lenders are not comfortable with businesses which have consumer customers with marginal credit.

Access Funding Center, Inc. can work with business owners which many traditional funding sources would not be interested in or able to work with. Interestingly, the reality of the consumer finance industry today is that most companies who do purchase consumer receivables will only purchase ‘A’ credit paper. Many times people who have excellent credit do not even need financing. The people who actually do need help with financing are the ‘B’ credit score people. It is the ‘B’ credit risk people which Access Funding Center, Inc. can help the business owner with. Why let these people walk away from your counter without the benefit of your product or service, when Access Funding Center, Inc. can help you make them profitable paying customers?

After having provided a financing option for the ‘B’ credit risk consumer the business owner has the further opportunity of selling the paper to enhance their cash flow position. There are many benefits to selling one’s paper either on a month to month basis or selling a large portfolio which the business owner may have been holding in house. These benefits will be discussed in a future article.

 

 

What is Consumer Receivable Financing?

Consumer Receivable Finanicing or other terms you see expressed as Consumer Contracts Funding, and Retail Installment Contracts Funding are note purchasing programs that are offered to companies who may be holding notes or contracts pending payments. Especially for companies who are experiencing cash flow crunches or companies wanting to make the next big move in their business structures, this can be a beneficial program.