Funding Programs
EFTx provides a variety of unique financing options, not normally available through banks or other non-traditional lending sources. These programs range from check/credit cash advances where you sell your future receipts at a discount, to more conventional options where you may still qualify even with lower credit standards than a traditional bank requires.
Business Loan Program
Small to medium sized businesses have always had difficulty getting bank loans. In this tumultuous economic environment this has become even more prevalent. Many businesses are declined because banks base their evaluation solely on the owner's credit standing. Other businesses need capital immediately and banks are unable to respond in the necessary time frame that the business needs. Unfortunately, this limits millions of business owners to alternatives such as merchant cash advances, which are at higher rates.
We specialize in providing solutions that allow well run small businesses to quickly access much-needed capital at fair rates.
We know that the volume of cash flow in a business is a better indicator of its financial health than its credit rating, so this program analyzes that first. This allows a business to be approved for a loan that otherwise would be locked out of fairly priced capital. By changing the evaluation process, this program has made it easy for small to mid sized businesses to receive loans at fair rates with rapid approval. We can typically get a "pre-approval" on the same day the application is submitted, an approval within two days and funding in less than a week. This allows us to provide the capital you need when you need it.
If you are a business with steady cash flow and small to mid-sized ticket sales this program is perfect for you. This perfomance based model makes fair financing available to millions of well run businesses that just miss the cut off for traditional bank loans.
This program:
- Is a loan, not a cash advance.
- Offers a simple No-Fee Application.
- Approval is based on business performance not only on the business or owners credit.
- Offers automatic repayment, which can improve your business credit.
- Provides increasing amounts of capital at decreasing rates as your track record builds.
- Is far less costly than a cash advance for businesses that qualify.
Cash Advance Programs
Our Cash Advance programs are similar to factoring except that the capital provider purchases future receivables at a discount without those receivables being in existence at that time. With factoring the funding company buys invoices already generated at a discount from their face value, and then collects the money directly from your customers. There is no "interest rate". Your future receipts are purchased for less than their face value, with the difference being the "discount rate".
With factoring this business has already occurred and is less risky to the lender. A cash advance on the other hand, uses historical information from your previous deposits to determine an amount of your future receipts that will be purchased. Once you receive the cash advance, you continue to collect from your customers so there is no need to have your clients payments mailed elsewhere. Repayment is made form future revenues deposited by taking a small percentage of your future deposits electronically. You continually make these deposits from the convenience of your office.
This program:
- Allows you to turn your customers future check payments into a business cash advance.
- Typically offers advance programs between $7,500 and $300,000 per incorporated location (though amounts both higher and lower are considered).
- Is competitive in the marketplace and does not have "set pricing" so we can be very flexible to meet our cleint's needs.
- Is particularly suited to wholesale and B2B businesses where check receipts are the primary form of receipts.
- Allows you to repay your cash advance with a portion of each check deposited (or credit card accepted).
- Is tailored to our client's individual financial needs in both size of the advance as well as the daily payback and projected terms.
Factoring
Is a program geared to provide unlimited working capital for those companies that are in the business to business environment. Factoring is a transaction in which a factor (funding company) purchases invoices that a client company has issued to its customers, and on which it has the rights to payments by those customers. An invoice is often payable after a period of time (typically, 30, 60, or 90 days).
The factor buys the invoice at a discount from the client company providing immediate capital funding. The factor then has the right to collect full payment from the client company's customers. This program has many advantages since it allows a business to accept sizable orders as well as taking on larger or slow paying customers increasing their sales volume and profitability. It is another way we...Provide the Capital you need when you need it.
EFTx also offers a variety of other funding programs geared to your specific needs.
For more information please contact one of our Consultants at: 718-304-7430
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