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Advice You - Cash Flow Solutions with Factoring
Ideal Candidates for Accounts Receivable Factoring:
Any business that provides a product or service to other creditworthy businesses and is constrained by their day-to-day cash flow situation.
Does your business need:
• Cash to Cover Payroll?
• Working Capital
Any business that provides a product or service to other creditworthy businesses and is constrained by their day-to-day cash flow situation.
Does your business need:
• Cash to Cover Payroll?
• Working Capital
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
to Fuel Growth?
• Help with Cash Flow Problems?
• Help because of Bank Turn Downs or refusal to extend current lines?
• New Equipment to Grow?
What is factoring?
In a traditional factoring arrangement, a company actually sells its receivables to another comp
• Help with Cash Flow Problems?
• Help because of Bank Turn Downs or refusal to extend current lines?
• New Equipment to Grow?
What is factoring?
In a traditional factoring arrangement, a company actually sells its receivables to another comp
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
any (a “factor”) at a discount. After the sale, the receivables balances are carried on the factor’s balance sheet since title has passed. Because the factor then owns the receivables, it generally provides all the required credit, collection and accounting services necessary to c
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
ollect the receivables, including assumption of the ultimate loss exposure from the client debtor. The important difference between factoring and asset-based lending is ownership. In factoring, the receivables are purchased and owned by the factor. In asset-based lending arrangem
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
ents, accounts receivable are pledged to the lender as security for the loan, but the borrower retains ownership and complete control of the receivables and the value of the receivables remains on the borrower’s financial statement.
Keeping the cash flowing is a challenge for al
Keeping the cash flowing is a challenge for al
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
l businesses. Does your company face cash flow challenges because of slow paying customers? Have you been forced to decline new opportunities because of cash flow issues?
As every business owner knows, sales alone do not measure the profitability of a company. For example, s
As every business owner knows, sales alone do not measure the profitability of a company. For example, s
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
ales may be increasing, but a company may have to wait weeks or even months for payment. During that time, your company cannot purchase materials for more orders, meet payroll, or other basic operating expenses. The solutions may be Accounts Receivable Funding provided through Div
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
ersified Funding Services, Inc. Accounts Receivable Factoring is quickly becoming a popular choice for its flexibility and rapid injection of needed capital.
Why Accounts Receivable Factoring is a Popular Choice in Today’s Business World
Accounts Receivable Funding or “fac
Why Accounts Receivable Factoring is a Popular Choice in Today’s Business World
Accounts Receivable Funding or “fac
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
toring” has been in existence for several decades. Today, virtually any-sized business that extends credit to other businesses for goods or services can enjoy the many benefits of Accounts Receivable Funding.
Simply stated, Account Receivable Factoring is the exchange of creditwor
Simply stated, Account Receivable Factoring is the exchange of creditwor
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
thy commercial accounts receivable for an immediate injection of working capital. When an invoice is generated, it may be purchased with an advance of anywhere between 75 to 90% of the net invoice amount. When your customer pays the invoice, you will receive the reserve portion mi
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
nus a nominal servicing fee.
Why Accounts Receivable Factoring Makes Financial Sense
Accounts Receivable Factoring offers many Advantages:
• Initial funding is typically available between 5-7 business days upon receipt of completed formal agreements, and then all future ad
Why Accounts Receivable Factoring Makes Financial Sense
Accounts Receivable Factoring offers many Advantages:
• Initial funding is typically available between 5-7 business days upon receipt of completed formal agreements, and then all future ad
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
vances are funded within 24 hours.
• Accounts Receivable Funding does not create a financial liability on your company’s balance sheet and generally no other collateral (outside of the receivables) is required.
• The amount of funding available to you is only limited by th
• Accounts Receivable Funding does not create a financial liability on your company’s balance sheet and generally no other collateral (outside of the receivables) is required.
• The amount of funding available to you is only limited by th
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
e creditworthiness of your customers.
• Accounts Receivable Factoring will focus on the creditworthiness of your clients instead of your financial history.
• Accounts Receivable Factoring allows quick access to working capital, instead of waiting 30, 60 or 90 days to recei
• Accounts Receivable Factoring will focus on the creditworthiness of your clients instead of your financial history.
• Accounts Receivable Factoring allows quick access to working capital, instead of waiting 30, 60 or 90 days to recei
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
ve payment from your customers, money is immediately available on demand.
Accounts Receivable Factoring Programs have been “generally” designed with the following criteria in mind.
• Your company must be providing a product or service to other credit worthy businesses
Accounts Receivable Factoring Programs have been “generally” designed with the following criteria in mind.
• Your company must be providing a product or service to other credit worthy businesses
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
• Your company must be selling on terms
• Your company must be billing in arrears (no pre-billing)
• Your company must have minimum monthly sales of at least $10,000 or annual sales of $120,000
• Your company is not required to be in business for any length of time
1. Complete the application
2. Provide your most recent and detailed accounts receivable aging report
3. Provide your most recent and detailed accounts payable aging report
4. Provide an actual sample invoice
5. Provide a copy of your Articles of Incorporation/
• Your company must be billing in arrears (no pre-billing)
• Your company must have minimum monthly sales of at least $10,000 or annual sales of $120,000
• Your company is not required to be in business for any length of time
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
r>
• Your company should have the capability to generate financial reports (A/R and A/P aging reports, etc.)
• Your company may have current and/or historical losses or a deficit net worth position
Ideal Candidates
• Start-ups
• Companies suffering financial setb
• Your company may have current and/or historical losses or a deficit net worth position
Ideal Candidates
• Start-ups
• Companies suffering financial setb
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
acks
• Service Companies
• Companies with seasonal orders
• Mature companies seeking cash flow support
• Companies seeking credit assistance
• Businesses experiencing rapid growth
• Non-bankable businesses
An example of the application process:
• Service Companies
• Companies with seasonal orders
• Mature companies seeking cash flow support
• Companies seeking credit assistance
• Businesses experiencing rapid growth
• Non-bankable businesses
An example of the application process:
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
1. Complete the application
2. Provide your most recent and detailed accounts receivable aging report
3. Provide your most recent and detailed accounts payable aging report
4. Provide an actual sample invoice
5. Provide a copy of your Articles of Incorporation/
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
d.b.a. filing
6. Provide a copy of your customer list
7. Some factoring companies require financial statements, others do not.
Preferred Industries
• Service
• Temporary Staffing
• Security companies
• Manufacturing
• Transportation
6. Provide a copy of your customer list
7. Some factoring companies require financial statements, others do not.
Preferred Industries
• Service
• Temporary Staffing
• Security companies
• Manufacturing
• Transportation
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
r>
• Textile/Apparel
• Computer Consulting
• Distribution Companies
• Printers
• Sub-Contractors
• All other Industries
• Any company that provides a business to business product or service to another credit worthy business!
Thanks for reading
• Computer Consulting
• Distribution Companies
• Printers
• Sub-Contractors
• All other Industries
• Any company that provides a business to business product or service to another credit worthy business!
Thanks for reading
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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