Wednesday, November 21, 2007

"A Private Banker" in its truest sense

The term private banking is bandied about quite often today by the consumer banking industry looking to get you to give them your deposits. To them, the privileges associated with being a private-banking client, typically consists of no more than free checking, and not having to stand in line to make a deposit. If you're lucky, they may even offer up an occasional free cappuccino too. In our opinion, true private banking has nothing to do with free checking accounts, or even cappuccino. It has to do with the ability of a client to sit down with an expert, a financial engineer, who is a decision maker, and who can help figure out ways to soundly, put "the bank's" capital into your business. Capital that can help management exploit growth opportunities and prosper. When executed correctly, this is a value added service, and a service well worth paying a premium for. It is also the kind of service that we at Quantum Corporate Funding, have been performing successfully for thousands of clients since 1991.

Q: What is factoring? How does it work?

A: Factoring is the purchase of accounts receivable for immediate cash. Once you have delivered a product or performed a service for a creditworthy corporation or institution, contact us prior to sending your invoice to your customer. We will confirm with your customer that the work has been completed or the goods delivered and accepted, we will advance you up to 70% (up to 60% for the construction industry) of the face value of the invoice amount in cash. When your customer pays us, you will receive the balance less our discount.

Q: Do I need accounts receivable financing?

A: Yes...if you are a new business. YES...if you are a business that can't get traditional financing, such as a small or medium size business or a minority or woman owned business. YES...if you need additional operating capital. YES...if you want to solve your cash flow problems.

Q: How do I qualify?

A: We base our credit decision on the strength of your customers, not you. It's easy to qualify if you meet the following criteria: Your customer must be another (creditworthy) business. Your invoice must be a valid one for goods sold and delivered or services your customer's satisfaction. We will verify each invoice with your customer.

Q: What does it cost?

A: The discount fee starts at 4% and is determined by the number of days that elapse from the day we advance funds to you until the day we are paid back by your customer. And, we earn our fee only after we have collected payment on an invoice..not before.

Q: How will I know which invoices are paid and which are not?

A: You will have your own account executive at our office, whom you can call at any time for updated information. Just request an "Aging Schedule" which will show you which invoices have been paid and which remain open.

Q: How fast can I get money?

A: In many states it takes as little as one week (or less) to get on-line. Once on-line, we can fund your invoices within 24 hours (once we receive verification of your invoices).

Q: How do I get started?

A: In order to get you on-line, submit your Accounts Receivable Aging Schedule as well as a customer list. Once we analyze your receivables and express an interest in proceeding with your funding, we need you to fill out a 2-page application as well as a copy of your Certificate of Incorporation and a $750 check made payable to Quantum Corporate Funding, Ltd. in order to do lien searches, etc. It's that simple!


One of the most common challenges a business in the construction field faces is maintaining cash flow. Yet most businesses are subject to progress payments, meaning they generally do not begin to receive payments until 30, 60 or even 90 days into the project. The answer to the inevitable cash crunch is factoring, which is quickly becoming the alternative financing method of choice throughout the construction industry.

What is Factoring?

Factoring means selling your accounts receivable – whether they be invoices, progress billings, requisitions. or AIA’s -- to a finance company (known as a factor) for a discount. The factor actually buys one or more of the business’s invoices, advancing cash to the business– typically, 70%. Once the invoice or invoices are paid, the factor will rebate the balance of the invoice after deducting its fee.

Who Can Benefit from Factoring?

Contractors, subcontractors, suppliers, and every other small to medium-size construction-related business can benefit from factoring.

How Can the "Quick Cash" Available through Factoring Be Used?

Construction-related businesses can use the funds available to them through factoring to pay their workers, make tax, workers’ comp, union dues, and insurance payments…and buy the materials necessary to complete their jobs. It can help a business that is facing a cash flow survive – and it can help a business grow by providing the funds needed to go after new jobs and new markets. The recent rebuilding following the devastation of Hurricane Katrina is the perfect example.

What Are the Advantages of Factoring?

Speed. A business that finds itself in a cash crunch may receive its funding in as little as 24 hours.
No Monthly Payments. Since the business does not actually borrow any money, it makes no monthly payments.
Continuous Cash Flow. Factoring provides a business with cash whenever it is needed.
Relies on the Financial Strength of Customers. Factoring provides funding based on the financial strength of a business’s customers, not on the business’s own financial strength.

Stimulating Growth Opportunities. Factoring offers businesses the chance to grow by providing them with access to funds they can use to bid on other jobs, get new customers, go into new markets, and increase their scope.
Accessible to Unbankable Businesses. Any business with accounts receivable can qualify for funding through factoring.

It limits your flexibility
A lender will secure assets equal to a minimum of three times the amount of the loan
You can not secure additional funds without renegotiating the loan
You must meet monthly payment obligations
There is a loan liability on your balance sheet

You don’t borrow money
You make no monthly payments
You receive funds in 24 hours or less
You control your cash flow by determining how much you need
You increase the availability of immediate cash which can enable you to bid on more new jobs and earn additional supplier discounts.

We Provide Working Capital For Contractors

Bonded/Non-Bonded Financing, Receivables Financing, Project Financing, Payroll Financing, Payables Financing, Credit Lines, Materials Financing, Equipment Financing, and Subcontractor Financing.

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