Purchase Order Finance

Devin Gilliland asked:


Per Transaction Fee – Fee in which the merchant pays to the merchant bank in order to process a transaction. When charged as a per transaction fee this will generally be a fixed fee, regardless of the size of the transaction. This is why certain retailers allot a minimum amount of expenditure before they will process a transaction.

Personal Identification Number – A numerical sequence that is used as a means of identifying the owner of a credit card or bank account, it is also known as a PIN number for short.

PIN – See Personal Identification Number for summary

Phone Merchant – A merchant whom conducts business transaction where the credit card or debit card is not present

Phone Transaction – A credit card or debit card transaction that occurs where the credit card or debit card is not present.

Point of Sale – The physical location at which a credit card or debit card transaction is processed. This is also known as POS or EPOS which stands for Electronic Point of Sale.

POS – See Point of Sale for summary

Policy – Policy, when used in the context of credit cards; can have broad definition such as to define and describe the behaviour of a merchant or merchant bank, either through obligations they have undertaken or being privileged to, and also referring to conventions/written statements whether informal/formal that govern certain decision making aspects and that provide a framework to approach differing situations with the same formulaic approach.

Posting – The term posting, when used in the context of credit card refers to the updating of a card holders account details to reflect adjustments that occur through debit and credit entries to the card holders account. These could include, but are not necessarily limited to, apportionment of APR, yearly fees, refunds and cash advances.

Primary Account Number – Primary Account Number or PAN is the number embossed on the credit card or debit card that identifies the owner of the card and also provides imperative information for card not present transactions.

Prime Interest Rate – The rate at which banks, credit card companies and financial institutions choose to lend money to their most trustworthy customers in terms of providing credit terms. To qualify for the prime interest rate it would be generally be the case that the customer, whether a person or entity, has sufficient assets to outweigh current liabilities, whilst also having assets on a sufficient scale to make their borrowing close to irrelevant as a percentage. A prime interest rate is said not to vary often, however interest rates (governed by The Bank of England in the UK) governed by economic powers may cause the cost of borrowing to increase or decrease in which circumstances the bank will pass this onto their prime interest rate worthy customers.

Processing Date – The date at which a transaction is initiated, when used in the context of credit cards.



Purchase Order Finance – PO Funding – Purchase Order Factoring – PO Factoring. For Commercial Finance Loans – Accounts Receivable Financing * Business Equipment Leasing * PO Finance * Commercial Property Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.

damselndstress2003 asked:


Its difficult to really prove my income being that i work on tips. I don’t have any outstanding credit card bills with the exception of one card where I only owe $86. I don’t have any car notes and my student loans are current. I have about 10 medical bills all under $300 that are in collections however, I’ve been told that medical bills aren’t that much of a concern when it comes to the homebuying process. I don’t want to open any credit lines, I just want to buy a home and have to only worry about the mortgage, etc. Trying to deal with some programs, they want to be all up in my business especially with dealing with banks. Any advice?

Purchase Order Finance – PO Funding – Purchase Order Factoring – PO Factoring. For Commercial Finance Loans – Accounts Receivable Financing * Business Equipment Leasing * PO Finance * Commercial Property Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.

Bail out BS asked:


“If someone does not have a job, they are not going to be borrowing money, right? So the lending that we would have happened is hard to do if someone does not have a job>’
Bullshit…I am a business owner in business for 7 years, My credit score is over 700, never behind on any bill. Why then in the hell all the sudden, my line of credit is canceled? My credit cards interest rate is going up and most my credit cards limit are slashed to almost half? Money that was given given to Banks by the government to strengthen the economy by giving out loans is nothing but pure lie.

Purchase Order Finance – PO Funding – Purchase Order Factoring – PO Factoring. For Commercial Finance Loans – Accounts Receivable Financing * Business Equipment Leasing * PO Finance * Commercial Property Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.

CollusionOfFate433 asked:


I don’t understand how the APR on my credit card (Capital One VISa) works.
Will you please explain what all of the below especially APR mean? Does that mean that I will have to pay some extra charges for APR at the end of the year? Thanks.

Finance Charges
Balance rate applied to Periodic rate
Corresponding APR FINANCE CHARGE
ANNUAL PERCENTAGE RATE applied this period: 16.55%

Purchase Order Finance – PO Funding – Purchase Order Factoring – PO Factoring. For Commercial Finance Loans – Accounts Receivable Financing * Business Equipment Leasing * PO Finance * Commercial Property Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.

Gregg Elberg asked:


Most people intuitively understand the time value of money from first time they received an allowance from their parents. All other things being equal, you would rather get your allowance today instead of having to wait for the weekend. Go to the movies today instead of waiting for the money. Instant gratification.

In business, if you have the money today you are positioned to increase the future value of your business by increasing sales of services or products over a period of time. There are several mathematical concepts to compute the time value of money such as present value, future value, present value of an annuity, and future value of an annuity. These computations are beyond the scope of this article.

Uneven cash flow is a challenge to B2B businesses that have to meet regular obligations such as payroll, rent and supplies. One solution to this problem is accounts receivable financing which is also known as factoring, factoring receivables and asset based lending. With accounts receivable financing you can get cash for your invoices immediately and give terms to your customers to pay you in thirty, sixty or ninety days.

The financial markets today are exceptionally volatile. There are grave concerns regarding a meltdown in the mortgage finance market and several major providers of home mortgages than have declared bankruptcy or exited this market. The secondary market for certain types of mortgage securities has virtually closed the door on securities known as subprime home loan securitizations which makes these types of bonds, not having any liquidity, virtually worthless. Why is this relevant to accounts receivable financing?

A little known fact is that many commercial finance firms that provide accounts receivable financing are not using their own money to fund their transactions. This is sometimes called “refactoring”. Their funds may be available from three sources: bank lines of credit, investor participations and the equity of the firm. Bank lines of credit, or asset based credit lines from major non-bank commercial finance firms are by far the largest source of funds for most firms that offer “refactoring” accounts receivable financing.

These firms are under more pressure from their lenders to make safe and sound loans. The pressure comes from Banks, Federal regulators such as the Federal Deposit Insurance Corporation and the Federal Reserve Banks. This may affect how long it takes to get financing.

There is a process called due diligence which is a pre-requisite to accounts receivable financing. Several components are: analyzing the credit of the borrower; analyzing the credit of their customers, and running a UCC-1 search in each state where the company operates. The UCC-1 search and filing is required to give the lenders the legal right to collect the accounts receivable that are being sold or pledged for the financing. This can take 5 to 10 days depending on the state bureaucracy and how busy they are with such requests. If the UCC-1 report is not “clean” meaning first lien status is not available to the lender, there will be no financing. Tax liens, legal judgment liens, and earlier financing liens can delay financing until they either are paid or subordinated.

When a B2B business is growing rapidly and needs more cash flow for operations the time value of money becomes critical. There is a common answer the question: “When do you need the money?” Answer: “Yesterday”.

John Lennon and Paul McCartney understood the time value of money and more importantly for them, the money value of time. They were the primary songwriters for the group, The Beatles, from 1960 to 1970. The group experienced major cash flow difficulties because of poor financial management of recording contracts, out of control costs of running their record business, Apple, and the pressures that caused them to renounce public performances (which was a major source of income). Some of their greatest songs (and a source of substantial future income) were created while they were on a hiatus to meditate with the Maharishi Mahesh Yogi in India in 1965. In 1970 The Beatles disbanded because of personality differences, the stresses of mass popularity and financial problems. Paul McCartney’s song, Yesterday, is considered to be the most recorded song in the history of popular music, if not the most popular song of all time. Here are the lyrics to Yesterday:

Yesterday,

All my troubles seemed so far away,

Now it looks as though they’re here to stay,

Oh, I believe in yesterday.

Suddenly,

I’m not half the man I used to be,

There’s a shadow hanging over me,

Oh, yesterday came suddenly.

Why she

Had to go I don’t know, she wouldn’t say.

I said,

Something wrong, now I long for yesterday.

Yesterday,

Love was such an easy game to play,

Now I need a place to hide away,

Oh, I believe in yesterday.

Why she

Had to go I don’t know, she wouldn’t say.

I said,

Something wrong, now I long for yesterday.

Yesterday,

Love was such an easy game to play,

Now I need a place to hide away,

Oh, I believe in yesterday.

Mm-mm-mm-mm-mm-mm-mm.

The bottom line: If your B2B business needs money yesterday accounts receivable financing may be the answer to your cash flow challenges.

Copyright 2007 © Gregg Financial Services

www.greggfinancialservices.com



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