馃攳
Business Loans Using Factoring. Easiest Loan to Qualify For! - YouTube
Channel: Leo Landaverde
[0]
in this video i will show you how
[2]
factoring
[3]
could be a great source of for providing
[6]
capital for your business during these
[8]
uncertain times
[21]
hey everybody welcome to my channel this
[22]
is leo landa verde i am a business coach
[24]
and also cfo
[26]
helping you scale your business if
[28]
you're ready to grow your business to
[29]
seven figures and beyond
[31]
while creating the financial freedom and
[32]
the lifestyle you want then subscribe to
[34]
this channel and don't forget to hit the
[36]
bell
[36]
so you're notified every time a new
[38]
video comes out
[40]
factoring is collateral based lending
[45]
the main difference is that banks are
[47]
primarily
[48]
cash flow based lenders so
[51]
factoring uses invoices as a means to
[54]
secure
[56]
lending decisions are made on the
[59]
quality of the accounts receivables
[61]
basically the quality of who you sell to
[64]
eighty percent of the underwriting for
[66]
factoring
[68]
is based on the quality of your
[69]
customers for example if your client
[72]
is a nationally nationally known brand
[75]
like the home depot costco walmart
[79]
or a publicly traded company you have an
[82]
easier time getting those invoices
[85]
factor
[86]
uh or or finance through uh your chances
[90]
are better with you when you work with a
[91]
nationally
[92]
recognized brand factoring is
[94]
essentially
[95]
invoice by invoice financing
[98]
also known as accounts receivable
[100]
financing so here's an example
[105]
factoring companies advance most of your
[108]
client invoice
[109]
to your business immediately then upon
[112]
receipt of your full payment from the
[114]
client
[115]
they give you the remaining balance of
[117]
that invoice
[118]
minus commissions and certain fees it
[121]
can also be referred as accounts
[123]
receivable financing
[125]
the factor is sometimes referred to
[129]
it is more concerned with the credit
[131]
worthiness of your client than it is
[132]
about your business
[134]
this can be a relatively expensive form
[137]
of financing but it could be a valuable
[139]
type of financing
[140]
in industries notorious for loan delays
[142]
and payments
[143]
now it's not uncommon when you're
[145]
dealing with a national
[146]
retailer that you'll get 90 day terms
[150]
meaning that you will not be expected to
[153]
be paid until 90 days from the date of
[155]
the invoice and then you start counting
[156]
the days
[157]
so for instance if you issue an invoice
[161]
uh on july 1st well
[164]
and it's not only you know to october
[166]
first 90 days later that you can begin
[168]
collecting so
[169]
say that you know your client takes
[171]
another 30 days to pay
[173]
all of a sudden you got four months out
[175]
of money so what
[176]
how do you grow a business and usually
[179]
what happens is that most businesses
[181]
that are growing fast
[182]
that actually they're tying up their
[184]
cash and the invoices while you still
[186]
need to
[187]
pay your rent make your payroll every
[190]
week or every two weeks so cash is
[192]
leaving out the doors but you're not
[194]
collecting on the invoices that are owed
[196]
to you
[196]
hence here's where the factor enters you
[199]
know there's this third party
[201]
who basically purchases your invoices
[205]
and it advances you 85 to 90 depending
[208]
they will go ahead and take the time and
[210]
effort to collect from your client
[213]
on that invoice they will get paid will
[215]
give you the remaining
[217]
balance minus their fees it's a really a
[218]
good way to go i've seen it happen in
[220]
the fast-growing companies
[222]
that are actually strapped for cash it's
[224]
a good way to raise capital
[226]
uh based on your business and the assets
[229]
are only the receivables hopefully this
[230]
is this is helpful to you
[232]
also please comment below and let me
[234]
know if factory could be an
[236]
option for your business or if you have
[237]
any questions for me that you'd like me
[239]
to address in a future video
[241]
also if you want to join a community of
[243]
like-minded successful entrepreneurs
[245]
just like you then
[246]
join our facebook group at the link
[248]
below where i share tips tactics and
[251]
strategies on how my clients are growing
[252]
their businesses to seven figures and
[255]
[Music]
[264]
beyond
Most Recent Videos:
You can go back to the homepage right here: Homepage