Working Capital Funding
The Vant Group has entered into a strategic partnership with the Interface Financial Group (IFG) to provide an innovative working capital financing option for small businesses, here is a summary of our financing solution and it's benefits.
Interface Financial Group (IFG) Benefits:
“Use It As You Need It” Financing
Unlike conventional lending sources, like banks and factors, our invoice discounting solution is very user friendly. Our solution involves no long-term commitments or recurring monthly minimum invoice discounting volume requirements. You sell us accounts receivable only when you need cash. You do not have to sell us a minimum amount of receivables each month or sell us receivables every month for a one or two-year contractual period. If you need only a one-time funding, we can provide it.
Immediate Cash That Allows You To Compete
We help you, as a supplier of goods and services, to turn your quality accounts receivable into instant cash. Our solution essentially converts a sale with 30 to 45 day payment terms into a “cash on delivery” sale. As a result, you have the funds needed to finance your next sale immediately – not 30 to 45 days later – and/or to take advantage of vendor discounts (by paying earlier or buying larger quantities). You can thereby increase your sales and revenues, accelerate your growth and lower your costs, increasing your profitability. Moreover, our solution allows you to compete on the basis of payment terms (and not just price) – a particularly profitable strategy if you can build in some of the cost of our solution into your pricing structure.
Not Age Sensitive
We offer funding solution for any business that has sales and generates accounts receivables from other businesses and from governmental authorities. Unlike many banks or factors, we do not flatly reject you as a potential client merely because you have not been in business for at least two years. Some of our clients have in fact only been in business for only a few months.
Not Balance Sheet Sensitive
Our review and approval process does not focus exclusively on your balance sheet. We do not flatly reject you because you have a weak balance sheet or because you have experienced a negative credit event (for instance, a bankruptcy) in your recent past. We focus more on the financial strength of your customers (the account debtors) -- of those businesses who have an obligation to pay your invoices.
Comparison Between Traditional Factoring and Invoice Discounting
| Service Features |
Traditional Factoring |
IFG Invoice Discounting |
Small Business Owner Benefits with Invoice Discounting |
| Long-term contracts required (1-3 year agreement)? | Yes |
No |
Flexibility in managing financing costs. Not locked into a costly, long-term commitment |
| Application Fees | Yes |
No |
Lower initial costs |
| Underwriting Fees | Yes |
No |
Lower initial costs |
| Monthly Minimum A/R commitments | Yes |
No |
Greater financing flexibility for owner |
| Additional Fees for missing A/R commitments | Yes |
No |
No hidden fees to service, all costs are transparent and upfront. |
| Required to purchase/manage all receivables | Yes |
No |
Greater management and financing flexibility for business owner |
| A/R Management complexity | High |
Low |
Less hassle, less time and easier service to manage for business owner |
| Customer interaction/collections | With Factoring Company |
With Small Business Owner |
Business owner has control of customer |
| What you pay for? | Financing, A/R management,
Collections, A/R Bookkeeping, Access to credit lines |
Financing |
Owner only pays for financing used, no additional service costs |
| Can control financing costs? | No |
Yes |
Owner can reduce costs based on usage strategy |
How IFG Works:
Once the IFG-client relationship is established and the initial documentation executed, the following SIX STEPS are needed to complete the first funding transaction:
ONE: You deliver your goods and/or services to your customer.
TWO: You create and issue an invoice for those goods and/or services.
THREE: You offer to sell the invoice to IFG.
FOUR: You advise your customer, the account debtor, of the transaction with a Notification of Sale.
FIVE: Your customer, the account debtor, acknowledges to IFG that it owes the account debt obligation to you and agrees to pay the account debt directly to IFG (or a lockbox controlled by IFG).
SIX: IFG completes the purchase of the invoice with a payment to you.
With your cooperation, we can complete an initial funding transaction in as little as five business days from the time of your first communication with us. Subsequent funding transactions can be completed in less than 48 hours – since, given our initial due diligence of your customer and the initial documentation executed, our process and documentation is streamlined.
IFG CLIENTS:
We will consider funding any business that has sales and generates accounts receivable from other businesses, including early stage companies, and from governmental authorities. We provide working capital to manufacturers, distributors, importers, exporters and service providers in almost every industry. We are among the few companies that fund progress payments owed to construction industry subcontractors.
The following is a partial list of some of the types of businesses that we will fund:
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