Solutions

Available to all industries selling products to quality purchasers.  Accounts Receivable Factoring transfers the credit risk of its receivable to the lender or third party and allow the company to benefit from immediate cash flow created from factoring of those receivables.  There are three types of factoring commonly offered: old line factoring, discount factoring, spot factoring and construction factoring.

Old Line Factoring – the standard form of factoring in America today, transferring credit risk and advancing on the invoice to the owner over night.

Discount Factoring – structured for development stage companies, a fee is charged for the purchase of the assignment of the credit risk to the lender and the cost of funds for the advance are charged as one combined fee called a commission.

Spot Factoring – designed for start ups or firms simply in need of immediate quick cash.  Spot factoring does not require multi year contracts and provides a company with flexability of selling invoices to the lender when working capital is needed.

Construction Factoring – factoring of accounts receivable within the construction industry where there is no bonding issues.

A facility allowing a company to liquefy its accounts receivable at extremely low bank rates.  Accounts Receivable Financing is a valuable tool to provide consistent cash flow to any company with quality receivables.

A form of financing designed to allow corporations or individuals to acquire other corporations by borrowing against either their assets or the acquired companies assets therefore leveraging the way into the acquisition by borrowing the majority of the money required.

Probably the foremost loan structure in America.  An asset based loan consists of components for receivable financing, equipment financing, inventory financing, CapX (a facility allowing the borrowing company to buy new equipment beyond that which is currently on the facility and in use.  An asset based loan is generally priced low because it is generally offered only to high quality companies with a responsible base of business.  These type of loans are what we strive to achieve for the higher quality companies.  Rates range from LIBOR plus to prime plus 2%.  A typical proposal would read as follows:  An $8 million dollar revolving line of credit secured by the accounts receivable with an advance rate of 85%.  A $2 million dollar line of credit secured by the current equipment based upon the supporting appraisal and a loan against the orderly liquidation value of no more than 60%.  Inventory at 75% of cost.  A CapX facility of $1 million dollars, the personal guarantee of the principals is required except if a real public company.  On occasion we can negotiate a validity guarantee which we will explain to you later on.

Collateral oriented revolving credit facilities and term loans for manufacturers, distributors, wholesalers and service companies.

Typical Transaction Size: $500,000 to $30 Million

On many occasions a real estate acquisition or senior loan requires that a bridge loan be made from a second lender to complete the transaction or to provide the necessary funds to pay for the soft costs of the acquisition or to pay for environmental studies associated thereto.  Bridge loans have assisted in the acquisition of many fine properties.  Typical interest rates are prime and will vary greatly depending upon the quality and location of the property, the urgency of the loan and the amount negotiated by the lender.

The requirements generally are exactly the same as any bank would require.  Typically the interest rates will be prime plus (in today’s market) with a 70% loan to value ratio (LTV).

On many occasions we have successfully raised the equity portion or the amount required between the anticipated debt and the price of the property, therefore allowing the purchaser to complete his transaction with the least amount of his personal cash.  In these situations the equity participants almost always negotiate an ownership of the property as well as an interest to be paid to the investors.

A full range of cash flow oriented and asset based finance products for manufacturers, wholesalers, distributors, specialty retailers and commercial and consumer service businesses.

Typical Transaction Size: $2 Million to $30 Million

Background:  Banks and other financial institutions often cannot serve the funding needs of smaller business customers without challenging their established lending criteria.  Many higher-risk, low-and no-asset small business borrowers may not qualify for traditional financing forms and, consequently, face critical challenges in meeting cyclical and emergency financial pressures.  As a result their business growth is restrained.

The lender is not a bank and does not lend money for a fixed term.  The lender busy current and future quality credit card receivables at a discount, thereby providing the merchant with a lump sum of cash when the contract is approved.  The merchant agrees to pay the Lender a fixed percent of each day’s credit card receipts until the obligation is satisfied (up to 20%).  The obligation is the amount advanced plus the factoring fee.  An example is a merchant who accepts $30,000 with a factoring fee of 32%.  The merchant pays the lender $39,600, which is formally called the “Right to Receive” or “RTR.”  In all cases for all products, the RTR is the total amount paid back over the term of the agreement and is referred to as gross revenue for the lender.  Since the lender has complete control over the merchant’s credit card processing receipts, the lender is able t extract the pre-agreed amount at the end of each business day, resulting in a daily payback.

Target Customers are:

• Restaurants – full and limited service not including major franchise chains
• Hotels, B&B’s, Motels, not including major chains
• Liquor and Wine Shops
• Spas/Salons
• Auto Repair
• Auto Parts
• Gift Shops
• Florists
• Franchises (second and third tier)Ethnic channels including Hispanic Chamber of Commerce

Many companies selling products or services to individuals often as us to provide consumer loans for their companies.  A consumer loan facility is one where each individual borrows money paying that money to the corporation for the promised services or for the delivery of goods.  A truck driving school is a classic example.  We often arrange for these loans for corporation such as the school and even arrange for payroll deductions for the borrower to comfortably meet the payment requirements.

Generally involving factoring or an asset based loan ordered by and allowed by an order from the Judge in a bankruptcy court proceeding.  This form of financing is considered the safest in that the Federal Government is assuring the lender of the proper and prudent use of money of the cash flow and the repayment of the loan.  Also know as bankruptcy financing.

There are three forms:Equipment Leasing, Sale Lease Back and Vendor Leasing programs.

Equipment Leasing: a form of financing to provide monthly payments for equipment purchase by a credit worthy company.

Sale lease Back: A credit worthy company that owns equipment and wishes to borrow against the equipment therefore a sale of the equipment to the leasing company and a lease established to pay for the equipment.

Vendor Leasing Programs: a company that sells machinery and equipment and wishes to offer leasing to its customer as a purchase option.

This type of financing is specifically designed to fulfill the requirements defined on a purchase order or letter of credit received by a company, distributor or broker – requiring them to purchase and ship goods as defined in their export purchase order or letter of credit.  Clasically, the export buyer posts a letter of credit to pay for the goods along with his purchase order.  Typically, a back-to-back letter of credit is issued paying the supplier for the goods under specific secure terms to assure delivery as required and defined on either the purchase order or the letter of credit.  In this form of financing the broker or seller receives his proportionate profit after borrowing the funds required to pay for the goods, land transportation, ocean freight, insurance and any duties that may be required to get the product to the buyer therefore completing a transaction payment.

Equipment, real estate, and acquisition financing for operators of established franchise concepts.

Typical Transaction Size: $500,000 to $30 Million

Assets based loan products targeting startup and small emerging companies for growth, working capital, restructuring, turnarounds or buyouts. Serving the New York Tri-State and California only.

Typical Transaction Size: $50,000 to $1 Million

A full range of accounts receivable, real estate, and equipment financing products and asset management programs for the US healthcare industry.

Typical Transaction Size: $500,000 to $50 Million

The ability to buy the goods that are presold from any supplier worldwide secured by an irrevocable purchase order from a quality purchasing source.

Inbound and outbound inventory financing, combined inventory/accounts receivable lines of credit and purchase order financing for equipment distributors, value-added resellers and dealers nationwide.

Loans to Public Companies are identical to corporate loans and include accounts receivable, machinery and equipment, unfinished goods inventory, finished goods inventory, real estate, etc.  The primary difference is in the due diligence requirements.  In today’s public market, all public companies must file 10Q’s and 10K’s which are audited, therefore, there is no issue of audited financial statements.  Most public companies which have achieved some semblance of revenue and have achieved a positive net worth does not require a personal guarantee of the president as he is an employee of the corporation.  We would still ask for a validity guarantee.

A form of financing whereby a lender acts in a bridge capacity to affect the transaction by lending the necessary smaller portion that may be required for both a higher interest rate and piece of equity in the company all secured by the senior debt provided by the asset based loan.

Payroll Financing provides a company with an unusual and very helpful form of financing.  It provides for the weekly payroll to be advanced to the company by the lender and is recovered from the receivables 30 to 45 days later.  Therefore, a company does not have to struggle seeking cash flow to make payroll every week.  This type of financing is exceptionally helpful in the construction industry, the staffing industry, for hospitals and medium to large-scale companies. In most cases we try to finance not only the payroll, but the accounts receivable therefore providing the payroll lender with added security that he will recover his funds if the customer has his receivables financed then we have to establish an inter-creditor agreement between the current receivable financing source and the payroll financing company. Advantages of this financing can be quite helpful to almost any industry.

On many occasions we are asked to provide loans to PC’s, the form of corporation or partnership used by physicians.  We are often asked to help them finance their accounts receivable provide them with equipment lease financing and often personal loans both secured by the physician’s signature and/or real estate.  We are often asked to provide financing for groups of doctors buying hospitals, MRI centers, clinics, dialysis centers, etc.

We are often asked to assist in capital formation raise money for companies who have new technology, new ideas and often companies that are established seeking to go public to raise money for either expansion or development of new technologies.  We never raise money directly for companies without knowing the principals for years.   Preferably we have been lending them money and over the years have developed a relationship and know the quality of the management, the success of the technology and the impact the required capital will have on the growth and the future of the company.  We are not venture capitalists. We are not a broker/dealer. We can only refer the company to equity sources.

With Purchase Order financing your company will have the ability to purchase the product you have sold domestically or internationally, pay for the product in advance through the use of letters of credits or cash and arrange for the quality assurance and delivery to your customers as well as pay for any duties or land transportation that may be involved.  Purchase Order financing is limited to products that are purchased in completed form whether manufactured in America or anywhere in the world.

Used heavily to both acquire and to refinance on a short-term basis commercial and residential properties.  These loans typically are fast to close and the interest costs are considerably higher than usually available under conventional lending practices.  When the borrower needs the money and is willing to pay the amounts required to obtain it the borrower will demand speed over cost to either save his property or either acquire a new property.

Revolving credit facilities to the independent consumer finance industry including sales, automobile, and mortgage and premium finance companies.

Typical Transaction Size: $1 million to $25 million

The requirements are exactly the same as any bank would require.  Typically, the interest rates will range in very high dollar loans at prime to prime plus 1% and on average residential loans, the rate will be between 6% and 10% based upon the quality of the borrower (borrowing score).  Loans up to 90% LTV are available under certain circumstances.  The typical loan being 80% LTV.

Construction, acquisition, and receivables financing for developers of timeshare resorts worldwide. Term financing for established golf resorts and resort hotels. Receivables funding for developers of second home communities.

Typical Transaction Size: $3 million to $75 million

Those loans secured by a guarantee of the U.S. Government further secured by all of the assets of the borrower and his/her spouse and their homes. Loans are generally available for real estate acquisition, buying of companies, buying of equipment. General rates are prime plus 2%.

Senior term loans, acquisition loans, and bridge loans for hotel and resort properties nationwide, as well as in Canada and the Caribbean. This type of funding also provides equity investments in credit-oriented real estate sale-leasebacks.

Typical Transaction Size: $5 Million to $40 Million

On many occasions we are asked to provide loans to individuals or corporations holding large blocks of stocks whether 144 or free trading in companies listed on United States Exchanges.  All exchanges including over the counter are acceptable.  Low fixed rates, up to 80% LTV, quarterly statements.  These loans offer you liquidity without selling your stock.  We offer insured redelivery of your shares at maturity.  Typical terms are from 2 – 20 years and you have the ability to exercise options without any out of pocket expense.

Equipment loans, leases, and acquisition financing for commercial and cargo airlines worldwide, railroads and other transportation related equipment.

Typical Transaction Size: $3 Million to $30 Million

Work in Process financing provided the manufacturer or assembler with the capital necessary to buy the component parts, complete the manufacturing or assembly of the product that is pre-sold so that the company can complete and fill purchase orders received from quality customers.