One of the most important things I learned early on in my consulting career is in order to generate revenue, commissions, fees you have to be able to follow the "FEES" Principal on the road to closing deals. … [Read more...]
Loans To Provide Medical Cash Flow-Not The Best Solution!
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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...]
Reviewing Financial Statements
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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 … [Read more...]
Timothy J. Sardinia
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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 … [Read more...]
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. … [Read more...]
A Quick Factoring Example…
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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?
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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. … [Read more...]
Is Factoring a “Loan” Like a Bank?
Factoring is not a loan and there are many differences between getting a bank loan and utilizing factoring. Banks lend money. Most of the time they require some form of collateral which can be challenging for small or new companies. Additionally, banks are limited (by regulation) to how much money they can advance a business owner (oftentimes between 30% - 50%). Lastly, bank "loans" show as a debt on the business owners books. Factoring is not lending. It is the purchase of a receivable at a discount. There are no collateral requirements, no "debt" and Factors are not limited in the amount of money they can advance (usually up to 90% depending on the payer). … [Read more...]