BIG Funding Group - What We Do

BIG Funding Group will help your business grow through the purchase of your receivables.

BIG Funding Group will help your business grow through the purchase of your accounts receivables. With funds from BIG, you can manage all of the issues which result from your growth and success: payroll for existing and new employees, the purchase of supplies (with the opportunity for cash discounts), cash requirements for new contracts and customers, and general working capital needs. BIG Funding Group works with over 50 financial institutions to help find the best fit for you. With the vast associations with these institutions, BIG Funding will find the right match for the perfect fit.

We can service single or multiple Invoices & Customers with volumes of $5,000. to $10,000,000 monthly.

HOW FACTORING WORKS
Factoring is a financing option for businesses. With factoring, the business (known as the Client) sells accounts receivable to the Factor in exchange for funding. The Factor typically advances 75% to 80% of the face amount of the accounts to Client. The Factor then collects the accounts from the Client's customers (the Account Debtors) and, upon collection, remits to Client the remaining 20% to 25% of the accounts, less a fee. In addition, the Factor provides various accounts receivable management, collection and credit services to the Client. The following diagram illustrates the factoring process:

With the Factored funds you can manage all of the issues which result from your growth and success: payroll for existing and new employees, the purchase of supplies (with the opportunity for cash discounts), cash requirements for new contracts and customers, and general working capital needs. Once you are set up we will usually fund you within a few hours of receiving your invoices.

Third Party Medical Receivables
An exceptionally specialized area of alternative commercial finance, BIG Funding Group maintains relationships with some of the largest purchasers of third party medical receivables in the nation.

Construction Factoring
One of the more difficult areas of commercial finance due to issues of sub-contractor and supplier lien rights. Learn more about our services in this highly specialized area.

Purchase Order Finance
Purchase Order Finance or "PO Funding" can be one of the more difficult types of commercial finance to secure for fast growing businesses. Factors, however, routinely provide some amount of purchase order finance as "pre-ship" invoice financing. Traditional purchase order finance is provided through companies that specialize in that transaction. Our clients benefit from our established relationships with some of the largest providers of purchase order finance nationwide. While requirements and qualifications for purchase order finance will vary from lender to lender, some are relatively standard. To qualify for purchase order financing your business generally must:

have an established factoring relationship.
not be re-packaging or simply creating an inventory with the product.
have an established and acceptable credit history.
be funding orders of significant size ($100,000 and larger).

Purchase Orders for services to be performed, rather than goods to be delivered, are virtually never acceptable for typical purchase order funding. This type of finance is considered "contract finance" and is generally obtained through local commercial lenders such as banks or unique providers of such services.

Asset-Based Lending
Similar to factoring in many ways, asset-based loans are those credit facilities grant borrowers using account receivable and inventories as the primary collateral. Unlike factoring arrangements, however, which result in the sale of your accounts receivable, asset-based credit facilities are always structured as loans.

Criteria for asset-based lending and establishing revolving lines of credit are substantially different than factoring. To establish credit lines with our lenders, your company must:

have well established credit with few derogatory experiences.
be seeking at least $500,000.
have substantial collateral with at least 2-1 coverage.
have at least a three year experience of profitability.
have audited financial statements.

Import/Export Trade Finance (International Factoring)
International factoring is a fast growing method of finance that is taking the place of many more typical letter of credit transactions. One of the benefits of international factoring transactions is the speed with which they can be put together.....generally within 48 hours. A typical international factoring transaction includes four parts:

1. The exporter signs a factoring contract with an export factor in its own country. Under the terms of the agreement, the exporter assigns all export receivables to the export factor. The export factor is responsible to the exporter for all aspects of normal factoring service.

2. The export factor selects an international factor as correspondent to act as import factor in the country to which the exports are going. The receivables are then reassigned by the export factor to the import factor.

3. The import factor will establish credit lines for each of the importers. The credit lines will be for a specific amount and terms of sales. The export factor confirms the details of the credit lines to the exporter.

4. After the exporter ships the goods and sends an invoice to the importer, the import factor handles the collection of the receivable and the prompt payment of the proceeds to the exporter's account at the export factor.

To be certain, financing export-import transactions offers challenges to even the largest and best capitalized companies. Don't walk away from this lucrative profit center for your business simply because of lack of experience. Let BIG Funding Group assist you in your international credit and financing transactions.