Loans To Provide Medical Cash Flow-Not The Best Solution!

 

Financial products have specific characteristics that make them appropriate for some situations and inappropriate for others. To date there is no “one size fits all” cash flow solution product. Read more

How Can I Earn Commissions in Factoring?

Moneymaking opportunities abound for factoring brokers and cash flow consultants. Read more

Reviewing Financial Statements

We are often asked to comment on how a consultant can use a company’s financial statements (Balance Sheets, Income Statements and invoice aging reports) to highlight the benefits of factoring their accounts receivables.

Below, you will find those areas of the reports that you can concentrate on and how you can best use this information to improve your chances of closing the deal!

Understanding the Balance Sheet from a Selling Perspective:

• Factoring simply turns one asset (Accounts Receivable) into another asset (Cash) – said another way. Factoring is “Off Balance Sheet” financing as you don’t incur any liabilities when financing this way (nothing to balance).
• By reducing your potential liabilities, you will increase your equity in your business “remember the equation” -  Assets = Liabilities + Owners Equity, therefore, if you decrease your liabilities, you increase your Equity!

Reviewing the Income Statement from a Selling Perspective:

• Turning the Non Performing Assets -  on the balance sheet “Accounts Receivable” into cash -  can free up the working capital to:
  • Take advantage of supplier discounts
  • Meet payroll and other expenses
  • Provide the cash needed for expansion and growth
• Millennium Funding will provide ancillary services, such as, credit, collection, invoicing and payroll which will reduce administrative expenses significantly.

Reviewing the Aging report from a selling perspective

• Can the client take on more debtors as a result of now having the cash flow to buy more supplies or hire more people?
• Can the client create more business from existing customers by allowing them to extend payment terms?
• Can the client start to bid on government contracts now that they will have the cash flow to cover the delayed payments that are inherent when working with the government?

Timothy J. Sardinia

Timothy J. Sardinia – Mr. Sardinia is currently a Partner with Canfield Capital Management, LLC, a Member of Steelkilt, LLC, a Member of Millennium Automotive Group, a Member of Millennium Legal Funding, the President and CEO of Sardinia Consulting, Inc and a Member of HighView Healthcare Partners, LLC.

Tim’s day to day responsibilities as a Partner with Canfield Capital Management LLC, a multi-million dollar commercial finance firm, include; Investor relations, Sales/Marketing, Initial file Underwriting and Portfolio Management. Tim holds a Bachelor of Science Degree in Business from Miami University.

Previously, Tim held positions in Sales and Sales Management with Cintas Corporation and Eagle International, Inc. Tim Currently resides in the Buffalo, NY area where he and his wife Margaret are the proud parents of four boys (Timmy, Jack, Benjamin and Harrison).

Tim can be reached at tim@millenniumfunding.com or by calling 716-204-4800.

Mike Ponomarew

Michael Ponomarew brings with him more than 24 years of experience in entrepreneurship, marketing, and business management. He has established and assisted in vending three other businesses. He currently owns one other company. He started in the factoring industry in 1999 as a consultant, which led to becoming a funding source in 2002.

Mike currently serves as the Director of North American operations for Millennium Funding. Millennium has factored hundreds of clients and each year manages in excess of $150 million in accounts receivable. Drawing on his experience as a consultant and a funding source, his responsibilities include training and coaching consultants, first and second stage underwriting and is one of the primary liaisons on behalf of the company in converting deals.

Mike has participated in a number of speaking engagements, guest speaker sessions, conventions, and advisory councils. He is a visiting Instructor of the American Cash Flow Assoc. and International Factoring Institute. Michael was also a contributing author for two other trade publications. Mike can be reached at mikep@millenniumfunding.com or by calling 888.652.8298 ext. 45.

How old is the Factoring Industry?

Factoring is probably one of the oldest forms of financing – dating back to ancient Rome.  

In the early 1900′s the first independent factoring companies were formed. In the beginning it was used for smaller companies and was a fairly expensive method of financing.  

By the 1960′s many Fortune 500 companies were using factoring as a method to stabilize cash flow.  

Today’s factoring companies are large and have significant dollars available. Additionally, their fees have been reduced significantly making factoring a viable option for companies that might have considered it too expensive in the past.  

 

A Quick Factoring Example…

Looking for a quick example of the factoring process? Let’s say that XYZ Enterprises makes table clothes. They receive an order for 10,000 from ABC Linens at the cost of $1.00 each. Read more

What is a UCC-1?

UCC stands for “Uniform Commercial Code.” It is a federal code that is recognized in over 40 states. The UCC took the place of various state statues covering conditional sales, chattel mortgages, and other forms of personal property.

Think about how a mortgage or deed of trust tie the home loan to the collateral – enabling a lender to foreclose on the property due to nonpayment of the note. A UCC is a way to tie collateral (other than real estate) to the debt owed.

A UCC-1 is on record with Secretary of State and/or the County Recording Office.

What is Factoring?

Factoring is the purchase of accounts receivables from a business at a discount.

The factoring process enables companies to sell yet-to-be-paid invoices and immediately receive cash. Read more

Factoring Large and Small

Factoring is the purchase of accounts receivable, or invoices, at a discount. This investment method has been in existence for literally centuries and is practiced widely across the United States and Europe.  Now, a reasonable question to ask is this, ‘Why would a business owner want to sell his receivables?”

Read more

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