Sterling Financial Services Group- Accounts Receivable Program Provided To Our Clients

Sterling Financial Services Group (SFSG) is a Financial Services company specializing in equipment leasing and financing, accounts receivable financing, and lines of credit.
The accounts receivable division of Sterling Financial Services (SFSG) has now become strategically aligned with one of the largest accounts receivable purchasing company’s in America. Our accounts receivable division is focused on funding growth oriented companies through asset based financing method known as Factoring, whereby a company uses its account receivables to generate immediate cash flow. Our factors purchase your company’s account receivable portfolio and immediate advance up to 80% of its face value. The balance of the funds less the factors fee and discount is released once the receivables are collected. Since 1994 factoring volume in the United States has more than doubled from $53 Billion to $110 Billion annually.

How Accounts Receivable Financing Can Be Beneficial

Accounts Receivable Financing can be beneficial as a tool to grow your company. Many companies stall at a given sales level because of their inability to fund their growing capital requirements. The most profitable sales are generally those that have not yet been made because fixed expenses such as rent, basic salaries, etc., are paid out of the first sales. Therefore, the profit margin on the additional sales are generally much higher, however if your company is precluded from making those additional sales due to lack of cash flow then they are unable to grow and realize those higher profits. The lost profits on additional sales generally outweigh the cost of factoring.

Complete Accounts Receivable Program

Factoring provides your company with a complete Accounts Receivable Program. This includes complete invoice processing and collection, and complete underwriting on all debtors. This results in lower internal cost and increased overall efficiency.

What is Factoring?

Factoring is an asset based financing method whereby a company uses their accounts receivable to generate immediate cash flow. Factors purchase your company’s account receivable portfolio and immediately advance up to 80% of its face value. The balance of the funds, less the factors fee and discount is released once the receivables are collected.

Why do Companies use Accounts Receivable Financing?

Accounts receivable financing solves the cash flow and timing problem by providing the needed capital now.

How do Banks and Factors Differ?

Banks are generally risk-adverse, cash flow lenders. Therefore obtaining a loan from a bank can resemble a long uphill climb. Banks look at you and your company as their primary source of repayment. In comparison, Sterling Financial Services Group looks at your customers as the primary source of repayment. Banks are focused on you and your company’s balance sheet and cash flow. However SFSG is focused on the quality of your company’s accounts receivable portfolio.

How Does Accounts Receivable Financing Work?

In an accounts receivable program a company sells their accounts receivables to a factor in order to secure immediate cash. This will enable the company to expand their operations, meet payroll, replenish inventory and meet other near term obligations in a timely manner. Accounts receivable financing provides the cash flow to:

Grow your business

Capture market share

Generate more sales and profits

Negotiate better terms and prices from their suppliers

Save on the cost of credit investigation

Save on the cost of collection

Take cash discounts on their purchases

Improve cash flow

Basic Accounts Receivable Program Highlights

No Personal Guarantees

No Term Contract (Open ended agreement cancelable by either party)

No liens on corporate assets other than Accounts Receivable

Your company does not give up equity

Funding is based on your company’s ability to generate eligible sales and not on Net Worth

Provides labor intensive credit and collection services

Quick response

What Does SFSG Look For In A Client?

Our focus is on the quality of the Accounts Receivable portfolio. We focus on the creditworthiness of the company’s customers rather than the company itself. In evaluating the accounts receivable portfolio we look at payment history, average days outstanding, cross aging, concentration and dilution issues. In addition to this we also look for:

High quality A/R

Capacity for Growth

Corporate Management

Decent Margins

Potential for success

Who Are Some of SFSG’s Clients?

Manufacturers, wholesalers, distributors, importers, transportation, technology, telecommunication and medical companies. Companies that are privately held, public, and venture backed. Start up companies and also companies experiencing rapid growth or in transition.

Is Accounts Receivable Financing A Good Choice for Your Company?

The answer is yes if your company falls into one or more of the following categories:

1. Start Up
2. Rapid Growth
3. Over Leveraged Balance Sheet
4. Inadequate Cash Flow
5. Acquisition/Buyout Situations
6. Transition/Turnaround Situations
7. Limited Time in Business
8. Seasonal Business
9. Insufficient Collateral
10. Venture Capital Backed
11. Loan Workout
12. Debtor in Possession

The Application Process

How long does it take to become a client?
Generally it takes 7 to 10 business days.

Can funding be provided in 24 hours?
Yes, once your company is a client funding is available within 24 hours of our ability to confirm the invoices you submit to be funded.

Information Required For Submission

SFSG application filled out

Two years corporate tax returns

two years personal tax returns

Interim financial statement

Copy of Invoices

General Funding Criteria and Parameters

We provide accounts receivable financing to small and mid-sized businesses throughout the United States. These include company’s experiencing rapid growth, high leverage, cash flow needs, historical losses and Chapter XI.
Normal client funding requirements range between $50,000.00 and $10,000,000.00 per month.

SFSG will also evaluate promising start up companies since funding is based on our clients credit worthy sales and not on their net worth.

Basis of Evaluation

Number of invoices outstanding

Number of accounts receivable outstanding

Percentage of invoices that collect in less than 60 days

Is the client automated

Financial Stability of the company