Consumer Receivable Financing

Consumer Contract Financing for the Home Improvement Industry

consumer receivable financing — Sat, 24 Jul 2010 15:45:03 +0000

If you are a contractor, licensed residential builder, specialty contractor or “handyman” involved in the home improvement or home renovation industry you know that if you can not provided financing to the sub-prime consumer, as well as the home-owner with stellar credit, you will be leaving money on the table and giving your competition a great advantage over you. By sub-prime consumer, I am referring to those home owners with credit scores under 700, and there are a great many home owners with credit scores under 700 who would be interested in your services if only they could qualify for the financing to enable them to acquire your product and/or service.

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consumer receivable financing — Sat, 12 Sep 2009 03:23:08 +0000

New Niche in Consumer Receivable Financing

consumer receivable financing — Fri, 03 Oct 2008 18:54:00 +0000

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:

consumer receivable financing — Tue, 12 Aug 2008 12:55:09 +0000

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!

consumer receivable financing — Tue, 05 Aug 2008 17:09:00 +0000

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 financing — Sat, 26 Jul 2008 03:08:13 +0000

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.