Business Finance Strategies
| |
Leasing |
Going
Public |
Venture
Capital |
Bank Loan |
Private Investor |
Government Programs |
Factoring |
| Simple Application |
No |
No |
No |
No |
Depends |
No |
No |
| Days to Fund |
15-30 |
120-170 |
90-180 |
60-180 |
15-90 |
60-180 |
2 to 10 |
| Approval based on Prospect's credit |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
No |
| Funding tied to Sales |
No |
No |
No |
No |
No |
No |
Yes |
| Give up Equity |
No |
Yes |
Yes |
No |
Yes |
No |
No |
| Give up Control |
No |
Sometimes |
Yes |
No |
Sometimes |
Sometimes |
No |
| Limited to Asset Value |
Yes |
No |
No |
Yes |
Maybe |
Yes |
No |
| Require Profitability |
Usually |
Yes |
Usually |
Yes |
Usually |
Usually |
No |
| On-going monitoring |
No |
Yes |
Yes |
Yes |
Yes |
Yes |
No |
| Reduce overhead |
No |
No |
No |
No |
No |
No |
Yes |
| Provided by American Cash Flow Association |
|
Factoring Increases Profits
| |
Before Factoring |
|
With Factoring |
|
| Sales Revenue: |
$100,000.00 |
|
$200,000.00 |
|
| Cost of Goods Sold: |
$60,000.00 |
|
$120,000.00 |
60% |
| Gross Profit: |
$40,000.00 |
|
$80,000.00 |
40% |
| Overhead: |
$36,000.00 |
|
$48,000.00 |
24% |
| Cost of Factoring: |
- |
|
$3,000.00 |
3% |
| Net Profit: |
$4,000.00 |
4% |
$29,000.00 |
14.5% |
| Provided by American Cash Flow Association |
|
