|
Cash Flow Financing
This financial tool
is neither debt, nor equity financing. It is the purchase of a cash flow stream
from a business by a funding source. Cash flow financing usually occurs when a
business is growing faster than it can collect it's receivables. When a cash
flow stream is sold, the present value of the asset is determined by the
Investor. Asset is priced to reflect the original amount along with a risk and
reward calculation. Risk is determined by several factors and is greatly
influenced by the credit of the Payor, and not the business requesting the
financing.
Cash
Flow Financing can include any transaction where there is a receivable,
including:
Commercial
Leases Equipment Payments
Purchase Orders
Sales Invoices
Memberships
Royalties
Annuities
Other
Benefits of Cash Flow Financing can include:
Immediate
cash. Flexibility in plans for growth.
Access to cash despite credit rating. Greater
equity in the business and less debt.
More flexibility in offering terms to Clients.
Ongoing monitoring of customer's credit status
Procedures:
For a quotation of the present value of the cash flow asset send the
basic information concerning the payments being received, your funding
request, and information on the payor.
www.TheProjectCorp.com
www.StartingAndExpandingABusiness.com
www.BusinessFundingSecrets.com
Return
to:
BusinessLoansAndVentureCapital |
