Noble Finance$:
Accelerating Cash Flow! Would faster cash allow you to be more
successful? Find out about this special financing program.
For U.S. Department of Defense or other Federal level
Contract Award Winners Only
-
Please call 404-374-3384 for details of the
Enhanced Federal Funding Program (EFFP).
How Factoring Works
Noble Finance$ provides Accounts Receivable Financing (Factoring).
Funds are available for companies with receivables from the government
or strong corporate entities. You are approved for this funding based on
the creditworthiness of your customers. The initial approval process
takes anywhere from 3 to 10 days. After that, once we receive your
invoices, you get your CA$H in 24 to 48 hours.
The funding source files a UCC-1 lien in order to obtain a first
position lien on your receivables. The factor handles collections. After
your customer pays, you get the remainder of your money less a discount
/ factoring fee.
Recourse vs Non-Recourse
Recourse: If for some reason your
customer does not pay, or does not pay for say 90 days, the Factor /
Funding Source will return the invoice to you. You have to re-pay the
advance or you may have the option of making an exchange by substituting
a current invoice of equal or greater value. Recourse factoring fees are
less than non-recourse because less risk is assumed. Non-Recourse: The Funding Company
assumes all the bad debt risk. You will never be required to return the
advance amount. But, you will continue to pay an escalating discount
rate until the invoice is paid. Factoring fees are much higher because
of the higher level of risk to the Factor.
For a discussion about recourse options, click
here.
Factoring / Discount Fees
If a discount fee of 4% for 30 days was mentioned, most would multiply
that number by 12 and assume it is a 48% interest rate. But since it is
a discount rate, it should be compared to discounts that might be
offered to a customer. If for example, you offered a 2% discount for
payment in 10 days, if would be inappropriate to multiply that discount
by 36 (36 ten day periods in a year) and come up with a rate of 72%.
But consider the cost of not having the working capital you need. Many
would say they could double their revenues if they had steady, reliable,
sufficient cash flow. An example to demonstrate how factoring can
increase your monthly net profit margin. Note: Fees and percentages may
be different in your case.
Current
Situation
50% Increase
in Sales
Doubled
Sales
Gross Sales
$40,000
$60,000
$80.000
Cost of Goods Sold (60%)
$24,000
$36,000
$48,000
Gross Margin
$16,000
$24,000
$32,000
Fixed Expenses
$8,000
$8,000
$8,000
Variable Expenses (17%)
$6,800
$10,200
$13,600
Factoring Fee (3%)
$1,800
$2,400
Total Expenses
$14,800
$20,000
$24,000
Net Profit
$1,200
$4,000
$8,000
Net Profit as % of Gross Sales
3%
6.67%
10%
The Funding Process
Noble Finances
offers Financing Programs that are tailored to your needs. To get
started, we need a completed application form. Then, at a minimum we'll
usually need the following supporting documentation.
1) Business Name Verification (Articles of Incorporation, DBA filing, etc.)
2) If not entered on the application form itself, a list of all
customers you are dealing with.
3) Most recent Accounts Receivable Aging Schedule.
4) Copies of Contracts/ Purchase Orders (if applicable).
5) Copies of recent Invoices for which you desire cash advances.
6) A copy of current financial statement..
7) A copy of most recent tax return.
8) Bank Account Information, including ABA routing number for wire
transfers.
Get the Application
For more information on financing for your industry and
To get to the appropriate application form,
Please click one of the links below:
for more strategies for building business credit and strengthening your business.
Noble Finance$:
Accelerating Cash Flow!
A Diversified Cash Flow Specialist (DCFS) company, certified by the
American Cash Flow Institute®.
Noble Finances
is a division of Noble & Associates Consulting, Inc.
-------------------------------------------------------------------------------------------------------------------------
Noble & Associates Consulting specializes in I.T. Needs /
Strategy Assessments, unbiased Software Selection assistance, and curing
Post Implementation DistressSM. We also have full life cycle
implementation expertise in SAP, Oracle and other enterprise-wide
software solutions.
