Advance, Loan, or A/R Financing?
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  1. #1
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    Advance, Loan, or A/R Financing?

    I have been working with a couple of Construction based merchants lately. Also some commercial HVAC, Transportation, Contractors, etc. If they are seeking a specific amount or range for a large purchase I obviously try to get it for them. The most common thing I notice is cash flow in between payments seems tobe a regular pain point for these people.

    I am pretty new to the Industry (5 months) and after 11 years in B2B sales, it us the ffirst time I've ever done anything finance based. I got zero training from the first firm I was at but taught myself the product pretty well. Now that I have a pretty strong pipeline I don't want to miss any funding opportunities because I didn't offer the right solution. For these type of Merchants is A/R financing the way to go...or is it just a backup? What else is there. Who specializes in it and how well does it pay?

    Thanks in advance for your advice.

  2. #2
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    Welcome to the Biz JSL23. Great question. Those businesses are challenged to fund for traditional Merchant Cash Advance or ACH, because they aren't really merchants. Those businesses require more financials than bank and processing statements to analyze their true cash flow. The cash advance product hungers for consistency, routine, stability and Predictability. A home builder, large contractor or HVAC co. might have huge but few deposits, however that's not cash flow. They must pay for materials, labor, permits,subcontractors etc.

    It's a whole other area of business finance, one not possible to shuffle into the Cash Advance model. Equipment leasing would be the best bet, assuming the business has been turned down for traditional business banker type (ie. Wells, PNC, Chase etc. none of whom will work with brokers)

  3. #3
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    MFS Global funds Construction companies.

    Contact us to discuss compensation and product details.

    702-473-1145
    isosupport@mfsglobal.com

  4. #4
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    Quote Originally Posted by mfs01 View Post
    MFS Global funds Construction companies.

    Contact us to discuss compensation and product details.

    702-473-1145
    isosupport@mfsglobal.com

    Do you have a minimum deposit volume requirement?

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