Frequently Asked Questions
Understanding Income Streams:
- What is an income stream?
- What is a "privately held" income stream?
- What is an income stream transacted in the "secondary market"?
Accounts Receivable Financing/Factoring:
- Do I need accounts receivable financing?
- How do I qualify?
- How does factoring differ from bank financing?
- Do factors offer any other services?
Privately Held Notes:
- How do I get started?
- Do I have to sell the entire note?
- Do I need "perfect credit?"
- How soon will I receive my money?
Understanding Income Streams....
Q. What is an income stream?
A. An income stream is a payment or a series of payments due in the future...a debt that one
business owes another. This debt is evidenced by a promissory note, an invoice or some
other debt instrument.
Q. What is a privately held income stream?
A. This income stream is held by an individual or a business rather than a bank or other
financial institution.
Q. What is an income stream transacted in the secondary market?
A. An income stream is deemed in the secondary market when it is already in existence rather than
being originated. The existing income stream is simply sold by the party entitled to receive the
future payments to another party who wants to invest in that income stream.
Accounts Receivable Financing/Factoring
Q. Do I need accounts receivable financing?
A. YES...if you are a new business. YES...if you can not obtain traditional financing.
YES...if you need operating capital. YES...if your company is growth-oriented.
YES...if you want to put an end to your cash flow problems.
Q. How do I qualify?
A. Your acceptance is based on the creditworthiness of your customers. This is based on
business to business accounts. Your invoices must be valid for goods sold and delivered
or services rendered (to your customer's satisfaction).
Q. How does factoring differ from bank financing?
A. Factoring is based only on the business's total accounts receivable. It provides continuing cash flow
without the requirement of periodic payments or interim payoffs. New sales continuously create
new power to obtain cash, and the business does not have to deal with renewal of loans
or worry about maturity dates.
Factoring gives a business increased access to cash as sales and receivables increase. There is no
ceiling beyond which the factor must stop providing cash. The more sales a business makes,
the more cash it can draw. The factor does not concentrate on the business debt/equity ratio
to provide funds, as traditional lenders do.
Factoring avoids the necessity of obtaining funds from venture capitalists, who receive an interest
in the business and generally have a say in how the business is operated. Factoring saves
the business owner precious time waiting for a loan board to grant or deny his or her loan.
Periodic delays and negotiations are eliminated, allowing the business owner time to do
what he or she does best--- run the business!
Q. Do factors offer any other services?
A. YES...factors often offer help with accounts receivable administration. The factor
offers this service at a comparable cost.
Privately Held Notes
Q. How do I get started?
A. Simply select the "contact us" link to the left to view our contact information. Call or email us.
Q. Do I have to sell the whole note?
A. NO...our funding sources can purchase all or part of the note you are holding. This allows us to tailor
the purchase to meet your specific cash needs.
Q. Do I need perfect credit?
A. NO...our funding sources specialize in supplying money where traditional funding institutions
will not. These sources are very flexible in each individual situation.
Q. How soon will I receive my money?
A. If all the information that a funding source nees to complete the transaction if readily
available, and appraisals and such can be done in a timely manner,
the money will be provided very quickly.
