At CSA, we understand no two individuals, businesses or business owners are alike and that’s why we look at each scenario individually to ensure that our clients get the financing that fits with their businesses goals and needs. By looking at each business on an individual basis, we are able to approve many more business owners than our competition.
As a direct lender, we can provide funding programs for individuals and business owners with bad credit history, newer businesses and those businesses that perform well but can’t show it with financial statements.
Hard money loans
Today, more than ever, traditional banks continue to “talk” about lending, but few actually are. CSA offers bridge loans for non-conforming, residential (non-owner occupied) and commercial real estate properties. We are a hard money lender working directly with the public.
CSA is a hard money private lender. We underwrite, fund, and service our own loans. Institutionally backed, CSA is a direct lender and is able to provide immediate funding for rapid closings.
Financing your Imports from China
Re-sellers and distributors often have to play a very delicate game of balancing their cash flow. This can even be more challenging if you are buying goods from factories in China.
On one hand, the Chinese factories will want you to pay for the goods in a secure way. Their obvious preference is always a wire transfer, in advance of production. However, most transactions are done by letter of credit to ensure that both side comply with their mutual requirements. On the other hand, your commercial clients will often insist on getting payment terms. These give them 30 to 60 days to pay an invoice.
Unless your company is very well capitalized, this can put you in a difficult financial position. Many distributors and resellers don’t have the resources to wait two months for payment. This problem is even more challenging if your company is doing well and has growing orders.
Funding purchase orders
One way to solve this problem is to finance your purchase orders for 90 days. The transaction works by partnering with a purchase order financing company, who pays your foreign suppliers on your behalf. This allows them to manufacture the goods and ship them to the US, or wherever their final destination may be. The transaction concludes once your clients receives the goods and pays for them.
To qualify for PO financing, your company must have a purchase order from a commercial client that has solid credit. This is very important since their credit backs the transaction. Likewise, you should work with a foreign supplier that has a good track record of manufacturing the goods that you sell. Additionally:
- Your gross margins should be above 20%
- You must sell finished goods
- Your invoices must not be encumbered
- Your company should not have serious tax/legal problems
CSA funding program has many benefits over conventional solutions. It offers a flexible line that can adapt to the size of the transaction. The maximum size of the line is not determined by your corporate collateral. Rather, the finance company looks at the transaction as a whole, specifically the creditworthiness of your order, the capabilities of your supplier and your ability to execute it successfully. This allows small businesses to fulfill orders that significantly exceed their financial capabilities.
Also, the line is comparatively easy to get. Most funding companies don’t have onerous requirements and can work with companies that don’t have a long track record. And lastly, the line can be deployed quickly. This point is very important because the solution can be used to handle large orders that have very short deadlines.
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Are you looking for purchase order financing? We are a leading finance company in the USA and can provide you with a competitive quote. For information, contact us.